KR Choksey's research report on Aurobindo Pharma
Aurobindo Pharma’s revenue beat our estimates (+2.8%) due to strong performance in Europe and Growth markets. EBITDA beat our estimates (+4.4%) due to better than expected gross profit and Adj. PAT beat our estimates due to better than expected other income and lower than expected tax expense. We maintain our FY26E/FY27E EPS estimates at INR 79.5 and INR 90.2 respectively, as we believe steady growth across key geographies, with biosimilars, injectables, and complex generics driving future expansion. Europe is set for sustained double-digit growth, and Growth Markets will maintain strong momentum through expanding domestic sales and deeper market penetration.
Outlook
Currently, the stock is trading at PE multiple of 15.0x/13.2x based on FY26E/FY27E EPS, respectively. We roll over our valuation multiple to FY27E and assign a PE multiple of 17.6x to arrive at a target price of INR 1,591 (unchanged) and maintain our “BUY” rating.
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