Buy Aurobindo Pharma; target Rs 230: Emkay
Emkay Global Financial Services is bullish on Aurobindo Pharma and has recommended buy rating on the stock with a target price of Rs 230 in its November 12, 2012 research report.
November 28, 2012 / 16:46 IST
Emkay Global Financial Services is bullish on Aurobindo Pharma and has recommended buy rating on the stock with a target price of Rs 230 in its November 12, 2012 research report.
"Aurobindo Pharma, Q2FY13 results were above expectations. Revenues up 41% to Rs14.9bn, EBITDA up 1.2x to Rs2.5bn and APAT (adj. for forex gain of Rs1.18bn) was up 95% to Rs1.05bn. 41% growth in revenues & 670bps expansion in margins was led by 31% $ growth in US business to $77mn, which was further led by launch of Singulair & ramp-up in Combivir and Plavix. Going forward - Revenues in US business will further ramp-up on back of approval on Unit IV (18 filings) and Unit VI (25 filed, 16 approved), which will lead to margin expansion.'"Management has guided for 15-20% growth in top-line on back of 25 new launches in US out of which 3 will be in the controlled substances space. The company has 162 ANDA approvals from USFDA, including 136 final approvals and 26 tentative approvals. EBITDA margins are expected to improve to 17% going ahead led by better capacity utilization at Unit VII and ramp-up in Unit IV & Unit VI which will drive US business. Management has guided for 15 new launches & 4 approvals during H1FY13. Revenues in US business will further ramp-up on back of approval on Unit IV (18 filings) and Unit VI (25 filed, 16 approved)""We expect Aurobindo to report 20% revenue growth in FY13 and 15% growth in FY14. We expect EBIDTA margins to improve from 13% in FY12 to 17% in FY13/ 14E. Earnings will grow at 14% CAGR over FY12-14E. We upgrade the stock to Buy with a target price of Rs 160. At CMP, the stock trades at 11x FY13E and 9x FY14E EPS," says Emkay Global Financial Services research report.Bodies Corporate holding more than 50% in Indian cos 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.To read the full report click on the attachment 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
