Hold Aurobindo Pharma, target price Rs 630: Axis Securities

Axis Securities has hold call on Aurobindo Pharma with a target price of Rs 630. The current market price of Aurobindo Pharma is Rs 556.45. Time period given by analyst is one 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 32633.85 Crore) operating in Pharmaceuticals sector.

Aurobindo Pharma Ltd. key Products/Revenue Segments include Pharmaceuticals, Sale of services, Export Incentives and Scrap for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 6276.54 Crore, up 7.14 % from last quarter Total Income of Rs 5858.25 Crore and up 8.53 % from last year same quarter Total Income of Rs 5783.29 Crore. Company reported net profit after tax of Rs 524.35 Crore in latest quarter.

Investment Rationale
The overall increase in the competition, persistent price erosion in the US market (68% revenue from the US market), and higher frequency of USFDA inspection may lead to more surprises in upcoming quarters’ results.


Promoter/FII Holdings
Promoters held 51.83 per cent stake in the company as of 30-Jun-2022, while FIIs owned 22.43 per cent, DIIs 15.58 per cent.