Hold Aurobindo Pharma target of Rs 840: Sharekhan

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26 Aug, 2025 12:21

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Sharekhan's research report on Aurobindo Pharma

Aurobindo’s Q4FYY20 results were better than estimates. Topline growth of 16.4% was driven by double digit growth in the formulations segment. OPM’s expanded 180 bps YoY to 21.8%. Adjusted PAT at Rs 882 cr was up 41% yoy. Approval of unit 4 partially eases the regulatory pressures as the unit had a substantial 47 product filings. However, Aurobindo’s other five plants continue to be under USFDA scrutiny and the Management is in the process of resolving it. Retraction of an acquisition deal, in the recent past augurs well as it eliminates concerns around rising debt levels. The recent run up in stock prices leaves limited upside. Uncertainties around regulatory hurdles would be an overhang until fully resolved.

Outlook

Thus, we maintain our Hold rating on the stock with a revised PT of Rs. 840.

For all recommendations report, click here

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