Hold Aurobindo Pharmaceuticals: Phani Sekhar

Phani Sekhar, Fund Manager, Angel Broking is of the view that investor can hold Aurobindo Pharmaceuticals.

Sekhar told CNBC-TV18, “One can continue to hold to Aurobindo Pharmaceuticals because it has a large backend infrastructure and it has a beautiful product basket. On top of it, you are seeing that it has got into some very good deals with both Pfizer and AstraZeneca Pharma also. There are political risks in the company. The growth in the business because you are expecting a high revenue growth coupled with an improving product mix, which is going to lead to very robust bottomline growth. When you look at around 35 percent compounded annual growth rate (CAGR) in the next two years, which is possible and a valuation of around 10.5-11 times, which is the stock is available at, I think the political risks are very much factored into the price and the investor can continue to hold on but yes, one should keep a firm watch on the news.”