Aurobindo Pharma may touch Rs 270: Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "The rupee depreciation very clearly have a tailwind on most pharma companies that have a substantial part of the revenues coming in from United States and the overseas markets."

"For Aurobindo Pharma almost 53 percent of the revenues come in from the US markets, from the generic space itself. Their backend formulation contract with Pfizer and Astrazeneca works definitely in their favour. The commencement on the SEZ operations is also a big positive for the company and again it is the market leader in the formulation segment controlling almost 30-35 percent of the market share," he added. "In Q2 our own expectations are that the top-line will grow 15 percent to Rs 1750 crore. There should be a decent bump up in EBITDA margins coming anywhere between 18 and 18.5 percent and the bottom-line translation should be a decent 50 percent almost Rs 207 crore. In valuation terms also it is trading reasonably." "If one looks at their trading five year averages, so in that sense on any decline Aurobindo Pharma from the midcap pharma space looks very attractive. Our 12 month target for Aurobindo Pharma is Rs 270."