ICICI Direct's research report on Aurobindo Pharma
Q4 revenues grew 16.4% YoY to Rs 6158.4 crore (I-direct estimate: Rs 5826 crore), mainly due to 20.5% YoY growth in the US to Rs 2990.3 crore (I-direct estimate: Rs 2964 crore). EU business also posted robust growth of 26.0% YoY to Rs 1652.5 crore (I-direct estimate Rs 1441 crore). EBITDA margins expanded 140 bps YoY to 21.4% (I-direct estimate: 19.5%) due to higher gross margins, partially offset by higher other expenditure. EBITDA grew 24.5% to Rs 1316.2 crore vs. I-direct estimate of Rs 1137 crore. Adjusted net profit grew 34.8% YoY to Rs 837.6 crore (I-direct estimate: Rs 656 crore). Delta vis-à-vis EBITDA was mainly due to a lower tax rate.
Outlook
The company has also significantly improved its debt position utilising additional cash freed up from foregoing the Sandoz deal. While a few other plants still remain under the USFDA scrutiny, the clearance for a critical plant indicates the company continues to work towards stricter adherence. We maintain BUY rating and arrive at our revised target price of Rs 920 at 15x FY22E EPS of Rs 61.4.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!