Aurobindo Pharma Ltd., incorporated in the year 1986, is a Large Cap company (having a market cap of Rs 45240.32 Crore) operating in Pharmaceuticals sector.
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Agencies
Promoters held 52 per cent stake in the company as of June 30, 2020, while FIIs held 22.6 per cent, DIIs 12.6 per cent and public and others 12.8 per cent.
Motilal Oswal has given buy rating to Aurobindo Pharma with a target price of Rs 1030. The share price moved up by 0.91 per cent from its previous close of Rs 771.90. The stock’s last traded price is Rs 778.95.
Aurobindo Pharma Ltd., incorporated in the year 1986, is a Large Cap company (having a market cap of Rs 45240.32 Crore) operating in Pharmaceuticals sector.
Financials For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 5835.23 Crore, down 3.76 % from last quarter Sales of Rs 6063.40 Crore and up 8.93 % from last year same quarter Sales of Rs 5356.84 Crore. Company reported net profit after tax of Rs 792.68 Crore in latest quarter.
Investment Rationale The brokerage expects ARBP to deliver 15% earnings CAGR over FY20-22E, led by new launches/increased market share in key markets of the US/EU and lower financial leverage.
It values ARBP at 16x 12M forward earnings to arrive at a target price of INR1,030. It remains positive on ARBP’s (a) capability to build a niche portfolio in the Injectables/Biosimilars/Inhaler space, (b) established presence across the manufacturing value chain in the US market, and (c) improving trajectory of profitability in the EU market. Promoter/FII Holdings Promoters held 52 per cent stake in the company as of June 30, 2020, while FIIs held 22.6 per cent, DIIs 12.6 per cent and public and others 12.8 per cent.
