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Buy Aurobindo Pharma; target of Rs 900: Motilal Oswal

Motilal Oswal is bullish on Aurobindo Pharma has recommended buy rating on the stock with a target price of Rs 900 in its research report dated May 09, 2017.

May 11, 2017 / 15:28 IST
     
     
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    Motilal Oswal's research report on Aurobindo Pharma

    Aurobindo’s Unit 4 facility was inspected by the USFDA in April 2017. The observation letter is out – although there are no data integrity issues, remediation requires infra repair, change in equipment, training, etc. We do not see a risk of warning letter, but believe that approvals from this facility may get delayed by six months.

    Outlook

    With the recent acquisition in EU (Actavis assets) and US (Natrol), the share of high-margin formulations in total revenues has increased to 80% (v/s 54% in FY10), positioning it among large-cap formulation players. Our target price of INR 900.

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    first published: May 11, 2017 03:28 pm

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