Astrazeneca Pharma India Ltd is Rated Sell

Current Rating and Its Significance

MarketsMOJO’s 'Sell' rating for Astrazeneca Pharma India Ltd indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at this time. This rating is derived from a comprehensive assessment of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall Mojo Score, which currently stands at 42.0, categorising the stock firmly in the 'Sell' grade. The rating was revised from 'Hold' to 'Sell' on 02 January 2026, reflecting a reassessment of the company’s outlook based on evolving market and company-specific data.

Here’s How Astrazeneca Pharma India Ltd Looks Today

As of 18 February 2026, Astrazeneca Pharma India Ltd remains a smallcap player in the Pharmaceuticals & Biotechnology sector. The company’s stock price has experienced mixed movements recently, with a 1-day gain of 0.72%, a 1-month rise of 8.89%, but a slight 3-month decline of 0.88%. Over the past year, the stock has delivered a robust return of 29.14%, outperforming many peers in the sector. Despite this, the current rating reflects deeper concerns beyond short-term price movements.

Quality Assessment

The company’s quality grade is rated as 'good', indicating solid operational and management standards. Astrazeneca Pharma India Ltd maintains a return on equity (ROE) of 26.1%, which is a strong indicator of efficient capital utilisation and profitability. However, recent quarterly results show some softness, with the profit after tax (PAT) for the December 2025 quarter falling by 45.6% compared to the previous four-quarter average. Additionally, the company’s cash and cash equivalents have dropped to ₹399.94 crores, the lowest in the half-year period, and PBDIT for the quarter has also declined to ₹44.83 crores, signalling some operational challenges.

Valuation Considerations

Valuation is a critical factor behind the 'Sell' rating, with Astrazeneca Pharma India Ltd classified as 'very expensive'. The stock trades at a price-to-book (P/B) ratio of 27.8, which is significantly higher than the average valuations of its pharmaceutical peers. This premium valuation suggests that the market has priced in high growth expectations. However, the company’s profit growth over the past year has been moderate at 16.3%, resulting in a price/earnings to growth (PEG) ratio of 6.6. Such a high PEG ratio implies that the stock may be overvalued relative to its earnings growth potential, raising concerns about sustainability of returns at current price levels.

Financial Trend Analysis

The financial grade for Astrazeneca Pharma India Ltd is assessed as 'flat', reflecting a lack of significant improvement or deterioration in key financial metrics. While the company has maintained profitability, the recent quarterly declines in PAT and PBDIT, coupled with reduced cash reserves, indicate a cautious outlook on near-term financial momentum. Investors should note that flat financial trends may limit upside potential and increase vulnerability to sector or macroeconomic headwinds.

Technical Outlook

The technical grade is described as 'mildly bearish', suggesting that the stock’s price momentum and chart patterns are not currently supportive of a strong upward move. Although the stock has shown some resilience with a 1-month gain of 8.89% and a 6-month gain of 6.59%, the 3-month decline and year-to-date slight fall of 0.27% indicate mixed signals. This technical backdrop advises caution for investors considering new positions, as the stock may face resistance or volatility in the near term.

Implications for Investors

For investors, the 'Sell' rating on Astrazeneca Pharma India Ltd serves as a signal to carefully evaluate the risk-reward profile of the stock. The combination of a high valuation, flat financial trends, and a mildly bearish technical outlook suggests limited upside potential and increased risk. While the company’s quality metrics remain good, the recent operational softness and stretched valuation metrics warrant prudence. Investors currently holding the stock may consider reassessing their positions, while prospective buyers should weigh the premium price against the company’s growth prospects and sector dynamics.

Sector and Market Context

The Pharmaceuticals & Biotechnology sector remains a dynamic and competitive space, with companies facing regulatory pressures, pricing challenges, and innovation demands. Astrazeneca Pharma India Ltd’s smallcap status adds an additional layer of volatility and liquidity considerations. Compared to its peers, the company’s premium valuation and recent financial softness highlight the importance of monitoring sector trends and company-specific developments closely. Investors should also consider broader market conditions and sector rotation themes when evaluating this stock.

Summary of Key Metrics as of 18 February 2026

To recap, Astrazeneca Pharma India Ltd’s key metrics currently stand as follows:

• Mojo Score: 42.0 (Sell grade)
• Return on Equity (ROE): 26.1%
• Price to Book Value: 27.8 (very expensive)
• PEG Ratio: 6.6
• Profit After Tax (PAT) quarterly decline: -45.6%
• Cash and Cash Equivalents (half-year low): ₹399.94 crores
• PBDIT quarterly low: ₹44.83 crores
• Stock Returns: 1Y +29.14%, 6M +6.59%, 1M +8.89%, YTD -0.27%

These figures illustrate a company with strong historical returns but facing valuation and financial momentum challenges that justify the current cautious rating.

Conclusion

In conclusion, Astrazeneca Pharma India Ltd’s 'Sell' rating by MarketsMOJO reflects a balanced assessment of its current fundamentals, valuation, financial trends, and technical outlook. While the company maintains good quality metrics and has delivered solid returns over the past year, its very expensive valuation and recent financial softness temper enthusiasm. Investors should approach this stock with caution, considering both the risks and the potential for volatility in the near term. Staying informed on quarterly results and sector developments will be crucial for making well-informed investment decisions regarding this pharmaceutical smallcap.

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