Neutral Aurobindo Pharma; target of Rs 1180: Motilal Oswal

Motilal Oswal's research report on Aurobindo Pharma

We analyzed the biosimilar portfolio of Aurobindo Pharma (ARBP) to understand the progress as well as competitive dynamics for each product. ARBP has built a biosimilar pipeline, which is expected to provide commercial benefit from FY26/FY27 onwards. It remains among the leading companies to gain traction in certain biosimilar products. ARBP is further enhancing benefits through CDMO partnerships and improving return on investment. On the US generics front, ARBP not only has the largest portfolio in terms of the number of molecules and revenue size, but it also continues to further enhance its offerings through aggressive filings comprising complex generics as well.

Outlook

We value ARBP at 17x 12M forward earnings to arrive at our TP of INR1,180. While the outlook is promising over the next 2-3 years, we reiterate our Neutral rating due to limited upside from current levels.