Current Rating and Its Significance
MarketsMOJO’s current rating of Sell for Astrazeneca Pharma India Ltd indicates a cautious stance towards the stock. This rating suggests that, based on a comprehensive evaluation of various parameters, the stock may underperform relative to the broader market or its sector peers in the near term. Investors are advised to consider this rating carefully in the context of their portfolio objectives and risk tolerance.
Quality Assessment
As of 07 February 2026, Astrazeneca Pharma India Ltd maintains a good quality grade. This reflects the company’s robust operational performance and strong return on equity (ROE), which currently stands at an impressive 29.1%. Such a high ROE indicates efficient utilisation of shareholder capital and a profitable business model. Additionally, the company has demonstrated a significant profit growth of 66.5% over the past year, underscoring its ability to expand earnings despite challenging market conditions.
Valuation Considerations
Despite the strong quality metrics, the stock’s valuation is assessed as very expensive. The price-to-book (P/B) ratio is currently at 26.8, which is substantially higher than typical industry averages and peer valuations. This premium valuation suggests that the market has priced in high growth expectations, which may limit upside potential and increase downside risk if growth disappoints. The company’s price-to-earnings growth (PEG) ratio of 1.4 further indicates that while earnings growth is robust, the stock price may already reflect much of this anticipated expansion.
Financial Trend Analysis
The financial grade for Astrazeneca Pharma India Ltd is positive, signalling favourable trends in key financial indicators. The company’s profit growth and return metrics support this view, highlighting a solid financial trajectory. However, investors should note that despite these positive fundamentals, the stock’s recent price performance has been mixed. Over the past six months, the stock has declined by 3.21%, and year-to-date it is down 5.11%, reflecting some market reservations.
Technical Outlook
From a technical perspective, the stock is rated as mildly bearish. This suggests that recent price movements and chart patterns indicate a cautious or slightly negative momentum. The stock’s one-day change as of 07 February 2026 was -0.85%, and it has experienced a 3-month decline of 6.84%. These trends may reflect short-term selling pressure or profit-taking by investors, which could continue to weigh on the stock price in the near term.
Performance Summary
Looking at returns, Astrazeneca Pharma India Ltd has delivered a 12.60% gain over the past year as of 07 February 2026. This positive return contrasts with the current sell rating, highlighting the complexity of the stock’s outlook. While the company’s earnings and quality metrics remain strong, the elevated valuation and technical signals suggest limited near-term upside and potential risks. Investors should weigh these factors carefully when considering exposure to this stock.
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Implications for Investors
The Sell rating on Astrazeneca Pharma India Ltd reflects a nuanced view that balances strong company fundamentals against valuation and technical concerns. For investors, this means caution is warranted. While the company’s earnings growth and quality metrics are encouraging, the stock’s high valuation and recent price weakness suggest that the risk-reward profile may be unfavourable at current levels.
Investors seeking exposure to the pharmaceuticals and biotechnology sector might consider alternative stocks with more attractive valuations or stronger technical momentum. Those holding Astrazeneca Pharma India Ltd shares should monitor the company’s financial performance closely and be prepared for potential volatility given the mildly bearish technical outlook.
Sector and Market Context
Within the broader pharmaceuticals and biotechnology sector, Astrazeneca Pharma India Ltd’s premium valuation places it at the higher end of the market spectrum. This contrasts with some peers trading at more moderate multiples, offering potentially better value. The stock’s smallcap status also implies higher volatility and risk compared to larger, more established companies in the sector.
Summary of Key Metrics as of 07 February 2026
- Mojo Score: 48.0 (Sell Grade)
- Return on Equity (ROE): 29.1%
- Price to Book Value (P/B): 26.8 (Very Expensive)
- PEG Ratio: 1.4
- Profit Growth (1 year): 66.5%
- Stock Returns: 1D: -0.85%, 1W: +0.16%, 1M: +1.84%, 3M: -6.84%, 6M: -3.21%, YTD: -5.11%, 1Y: +12.60%
These figures illustrate the stock’s strong earnings growth and quality, but also highlight the valuation premium and recent price softness that underpin the current rating.
Conclusion
In conclusion, Astrazeneca Pharma India Ltd’s Sell rating by MarketsMOJO as of 02 January 2026 reflects a comprehensive assessment of quality, valuation, financial trends, and technical factors. While the company exhibits strong profitability and growth, the elevated valuation and cautious technical signals suggest limited upside and increased risk. Investors should carefully consider these factors in their decision-making process and remain vigilant to any changes in the company’s fundamentals or market conditions.
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