Lupin vs Aurobindo Pharma Which Performs Better?

Lupin and Aurobindo Pharma are two renowned pharmaceutical companies competing in the stock market. Lupin, a global player in the pharmaceutical industry, has a strong presence in various segments, including generics and specialty drugs. Aurobindo Pharma, on the other hand, focuses on manufacturing and selling generic pharmaceuticals worldwide. Investors are constantly comparing the performance of these two stocks to make informed decisions. Analyzing their financials, market positioning, and future growth prospects can help investors determine which company is a better investment option.

Lupin or Aurobindo Pharma?

When comparing Lupin and Aurobindo Pharma, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Lupin and Aurobindo Pharma.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Lupin has a dividend yield of 0.38%, while Aurobindo Pharma has a dividend yield of 0.12%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Lupin reports a 5-year dividend growth of -4.36% year and a payout ratio of 0.00%. On the other hand, Aurobindo Pharma reports a 5-year dividend growth of 21.67% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Lupin P/E ratio at 36.80 and Aurobindo Pharma's P/E ratio at 19.80. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Lupin P/B ratio is 6.18 while Aurobindo Pharma's P/B ratio is 2.30.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Lupin has seen a 5-year revenue growth of 0.19%, while Aurobindo Pharma's is 0.51%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Lupin's ROE at 18.24% and Aurobindo Pharma's ROE at 12.06%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹2110.60 for Lupin and ₹1210.75 for Aurobindo Pharma. Over the past year, Lupin's prices ranged from ₹1200.15 to ₹2312.00, with a yearly change of 92.64%. Aurobindo Pharma's prices fluctuated between ₹958.50 and ₹1592.00, with a yearly change of 66.09%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.