Add Aurobindo Pharma, target price Rs 763: ICICI Securities

ICICI Securities has add call on Aurobindo Pharma with a target price of Rs 763. The current market price of Aurobindo Pharma Ltd. is Rs 676.95. Time period given by analyst is year when Aurobindo Pharma Ltd. price can reach defined target. .
Aurobindo Pharma Ltd., incorporated in the year 1986, is a Large Cap company (having a market cap of Rs 39668.04 Crore) operating in Pharmaceuticals sector.

Aurobindo Pharma Ltd. key Products/Revenue Segments include Pharmaceuticals, Export Incentives, Scrap and Sale of services for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 6038.50 Crore, up 4.41 % from last quarter Total Income of Rs 5783.29 Crore and down -7.63 % from last year same quarter Total Income of Rs 6537.19 Crore. Company reported net profit after tax of Rs 707.76 Crore in latest quarter.

Investment Rationale
The brokerage cuts EPS by ~7% to factor in higher costs leading to pressure on margins. Retain ADD with a revised target price of Rs763/share based on 14xFY23E earnings (earlier: Rs876/share). Key downside risks: regulatory hurdles, currency volatility and delay in US launches.

Promoter/FII Holdings
Promoters held 51.83 per cent stake in the company as of 30-Sep-2021, while FIIs owned 23.41 per cent, DIIs 13.82 per cent.