Accumulate Aurobindo Pharma; target of Rs 824: Angel

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26 Aug, 2025 12:21

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Angel Broking's report on Aurobindo Pharma

For 1QFY2016, Aurobindo Pharmaceuticals (APL) posted a decent set of results. The company posted a sale of `3,320cr (v/s `3,400cr expected), a growth of 14.7% yoy. Sales were driven by formulations, which grew by 15.9% yoy; formulations constitute around 79% of sales. The key formulations segments like US, Europe, ROW and ARV posted a yoy growth of 28.1%, (7.1)%, 24.6% and 31.7% respectively. The API, on the other hand grew by 7.9% yoy. The operating profit came in at `725cr while the OPM stood at 21.8% (v/s 20.3% expected), ie a yoy contraction of 34bp. The company posted a net profit of `432.4cr, ie a yoy growth of 4%. The Adj. Net profit for the quarter came in at `451cr V/s `415cr in 1QFY2015, a yoy growth of 8.7%.We recommend an Accumulate rating on the stock.

Outlook and valuation: We estimate the company’s net sales to log a 11.3% CAGR over FY2015–17E to `16,600cr on back of US formulations, which will be supplemented through the recent acquisitions of the Western European formulation businesses of Actavis and US’s Natrol. The acquisitions have also led APL to become a >~US$2bn sales company, with around 80% of sales being accounted by formulations. We recommend an Accumulate on the stock, says Angel Broking research report.For all recommendations, click here 

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.

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