16200 Investors following Aurobindo Pharm. Share this News with them.
0
Like this story, share it with millions of investors on M3
Accumulate Aurobindo Pharma; target Rs 139: Emkay
Emkay Global Financial Services is bullish on Aurobindo Pharma and has recommended accumulate rating on the stock with a target price of Rs 139 in its February 14, 2012 research report.
Emkay Global Financial Services is bullish on Aurobindo Pharma and has recommended accumulate rating on the stock with a target price of Rs 139 in its February 14, 2012 research report.
"Aurobindo Pharma, Q3FY12 results were in-line. Net sales up 18% to Rs12.6bn, EBITDA down 40% to Rs1.9bn and APAT (adj. for forex loss of Rs1.44bn) was down 57% to Rs1.16bn. Revenue growth was driven by strong uptake in low margin ARV APIs, new product launches in Europe & RoW and INR depreciation. EBITDA margins increased 400bps QoQ to 13.4% mainly due to INR dep as exports contribute 70% of revenues which were completely un-hedged. Going forward, till USFDA issues are resolved at Unit III & VI, growth in US would remain muted."
"We expect Aurobindo to report 12% revenue growth in FY12 and 16% growth in FY13. We expect EBIDTA margins to decline from 17.1% in FY11 to 12.5% in FY12 & 14% in FY13. Base earnings will grow at 16% CAGR over FY11-13E. We value the company at 9x FY13E Core EPS of Rs15.4 to arrive at a target price of Rs 139 and maintain Accumulate rating. At CMP, the stock trades at 9x FY12E EPS and 7X FY13E earnings," says Emkay Global Financial Services research report.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
