Sharekhan's research report on Aurobindo Pharma
Aurobindo Pharma (Aurobindo) reported a weak performance for Q1FY22 and the results missed estimates. Multiple headwinds like higher price erosion and inventory built up across channels have emerged for the US business and the same is expected to sustain at-least in the near term. Over the long term, efforts to build presence in specialty segments - biosimilars, oncology & injectables could be the growth drivers, but near term headwinds in US business are expected to slow down the growth. .
Outlook
At CMP, the stock is trading P/E of 12.4x and 10.8x its FY22E and FY23E EPS, which is attractive. we retain our Buy recommendation with revised PT of Rs. 915
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