Centrum's research report on Aurobindo Pharma
APL’s formulations business (80% of revenues) grew 11% YoY to Rs 31.30bn from Rs 28.09bn, led by strong growth in the US business. Its US formulations (45% of revenues) grew by 12% YoY to Rs 17.45bn from Rs 15.58bn due to new product launches. Formulations in the EU and RoW (27% of revenues) grew by 10% YoY to Rs 10.43bn from Rs 9.46bn due to good growth in the emerging market business.
Outlook
We maintain our Buy rating on Aurobindo Pharma (APL), with a TP of Rs 1,110 (earlier Rs 1,060) based on 18x March’19E EPS of Rs 61.7. APL’s Q3FY17 results were below our expectations. APL reported 11% YoY sales growth, a 40bps decline in margin to 22.9%, and 6% YoY net profit growth.
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