Moneycontrol
Feb 13, 2017 05:02 PM IST | Source: Moneycontrol.com

Buy Aurobindo Pharma; target of Rs 965: ICICI Direct

ICICI Direct is bullish on Aurobindo Pharma has recommended buy rating on the stock with a target price of Rs 965 in its research report dated February 13, 2017.

Buy Aurobindo Pharma; target of Rs 965: ICICI Direct


ICICI Direct's research report on Aurobindo Pharma


After filing its first ANDA in the US in 2003, the company has come a long way as the current ANDA filings are at 421. The US revenue run rate has grown from US$100 million in FY09 to US$935 million as on FY16. Note that this was despite the USFDA embargo in FY12-13 on unit VI and unit III.


Outlook


We believe launches continuum, especially in the injectable space, can effectively neutralised channel consolidation and pricing pressure headwinds. Other important segment i.e. Europe is likely to fetch better margins on the back of product transfers to India and focussed approach. We have ascribed a target price of Rs 965, based on 19x (earlier 20x) FY19E EPS of Rs 50.7.

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