Hold Aurobindo Pharma; target of Rs 665: KR Choksey

KR Choksey recommended hold rating on Aurobindo Pharma with a target price of Rs 665 in its research report dated May 31, 2023.

Broker Research

June 01, 2023 / 16:48 IST

hold

26 Aug, 2025 12:21

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KR Choksey's research report on Aurobindo Pharma

In Q4FY23, Aurobindo reported a revenue of INR 64,730 Mn (+11.04% YoY and +1.0% QoQ) driven by healthy growth in US/ ROW markets and the API business. For FY23, the company reported a revenue of INR 2,48,553.8 Mn. During the quarter, EBITDA grew by 2.9% YoY and 5% QoQ to INR 10,022 Mn. The margins contracted by 129 bps YoY to report to 15.5%(+59 bps QoQ), the dip in the margins was as a result of change in product mix and one off expenses of INR 400-450 mn. The net profit for the quarter stood at INR 5,109 Mn (-11.4% YoY and +4.1% QoQ). The net profit margins contracted by 203bps YoY( +23bps QoQ) .EPS during the quarter stood at INR 8.6 against INR 8.2 in Q3FY23 and INR 9.8 in Q4FY22.

Outlook

The stock is currently trading at 13.2x/11.8x of our estimated FY24E/FY25E EPS. We assign a P/E multiple of 12.0x on FY25E EPS of INR 55.4 to arrive at a Target Price (TP) of INR 665 (earlier TP INR 626) and revised the recommendation from ‘Accumulate’ to ‘Hold’, as the upside potential is 1.3% from its CMP of INR 657.

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