Buy Aurobindo Pharma; target of Rs 817: Geojit

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26 Aug, 2025 12:21

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Geojit's research report on Aurobindo Pharma

Aurobindo Pharma (Auro) is one of the largest vertically integrated pharmaceutical companies. Over the past few years, the company has drastically shifted its focus from APIs business to generic formulations.Auro reported ~2% YoY decline in revenue in Q1FY18 primarily due to weak API & ARV business performance. US sales fell just 0.5% YoY as new product launches offset the impact of pricing pressure in select brands. EBITDA margin fell ~72bps YoY in Q1FY18 due to higher employee, R&D and other expenses. We expect revenues to grow at 11% CAGR over FY17-19E driven by recent acquisition in Europe, new product launches.

Outlook

we increase our PE multiple to 17x (15x earlier). Hence, our revised target price stands at Rs 817. Maintain ‘BUY’ rating on the stock.For all recommendations report, click here

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