Buy Aurobindo Pharma; target of Rs 1510: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Aurobindo Pharma has recommended buy rating on the stock with a target price of Rs 1510 in its research report dated February 10, 2025.

Broker Research

February 11, 2025 / 14:47 IST

Buy

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Aurobindo Pharma

Our FY26/27E EPS estimates broadly remains unchanged. Other expenses remained elevated on the back of higher PenG-related operational cost and supply disruptions due to ongoing remediation. However, mgmt. stated remediation related cost has been completed. We expect margins to improve with ramp up in PenG facility, Vizag pant commercialization and launches in US. Pick up in US sales hinge on timely niche approvals along with stabilization of pricing pressure in the base business. We believe ARBP has multiple growth drivers in place with investments in vaccines, injectables, biosimilars and PLI which are expected to be reflected from FY26.

Outlook

Aurobindo Pharma’s (ARBP) Q3FY25 EBITDA of Rs16.3bn (up 2% YoY) with OPM of 20.4%, largely in line with our estimate. Given attractive valuations (8x EV/EBITDA and 14x P/E on FY27E) and earning triggers, we upgrade stock from “Accumulate” to “Buy” with revised TP of Rs1,510/share (Rs1475 earlier).

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