Arvind Bothra positive on Aurobindo Pharma

Arvind Bothra, vice president of institutional research at Religare Capital Markets told CNBC-TV18, "Two things have been going very positive for Aurobindo Pharma of late. Their US business is continuing to do exceedingly well, both on execution of product launches as well as the quality of product approvals that they have had and that has been very positive for the stock."

He further added, "The second thing which is more important for Aurobindo has been steady improvement in cash flows and profitability which has led to reduction in debt levels in the last two quarters by close to USD 110 million."

"In the near-term they have benefited from Cymbalta product opportunity or Duloxetine where initial expectations were to have 8-10 players on day one whereas only Aurobindo, Lupin and Sun Pharma have been able to launch so far. So the opportunity suddenly becomes much more lucrative than it was anticipated and from Aurobindo's base that would be a significant positive," Bothra said.

He further said, "We have seen consistent earnings improvement in the first half, you would see even stronger second half for Aurobindo. So I remain positive and though it is not in my active coverage list, but I have been tracking the stock and I am positive on the stock at these levels."