Aurobindo Pharma: US reopening, traction for COVID vaccine near-term growth opportunity
The most positive development for the last fiscal year has been a sharp reduction in leverage which positions Aurobindo Pharma for capex commitments in the API, vaccine and biosimilars space
June 02, 2021 / 12:09 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
While Aurobindo Pharma (CMP: Rs 998, Market Cap: Rs 58,491 crore) reported an uninspiring result for Q4FY21, near-term triggers for the company has moved towards vaccine opportunity and the improved business dynamics in the developed world as economies open up.
This leads us to decipher the company’s earnings traction from COVID vaccine as a new facility would be ready by the end of June, and, post that, the validation process would start. The new facility would take the total...