Geojit's research report on Aurobindo Pharma
Aurobindo Pharma Ltd (ARBP) is a leading pharmaceutical company that is vertically integrated with business units engaged in formulations, custom synthesis, peptides, R&D and API. ARBP’s revenue in Q3FY23 rose 6.7% YoY to Rs. 6,407cr, mainly driven by revenue from the US. Its PAT declined 13.8% YoY (+20.0% QoQ) to Rs. 491cr. EBITDA margin contracted 200bps YoY to 14.9% (+30bps QoQ), primarily due to increased R&D expenses and higher other overheads. The US market share recovery, the Penicillin-G project, and the biosimilars business’ new product launches are expected to support the company in generating strong cash flow from FY25.
Outlook
Hence, we reiterate our BUY rating on the stock with a revised target price of Rs. 554 based on 12x FY25E adjusted EPS.
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