Motilal Oswal: Aurobindo Pharma - Development Of Complex Pipeline On Track  
A man rides past an Aurobindo Pharma production facility in Jadcherla, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

Motilal Oswal: Aurobindo Pharma - Development Of Complex Pipeline On Track  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

The Aurobindo Pharma Ltd. stock has corrected approximately 20% over the past two months. This, we believe, provides a good entry opportunity in the stock.

Multiple factors strengthen our positive stance on the stock, such as:

  1. The gradual improvement in outlook for the Injectable business
  2. Ongoing efforts to build a complex product pipeline
  3. Significantly reduced financial leverage
  4. Completion of remediation measures at sites under regulatory issues
  5. Comfortable valuation (at 11.9 times FY22E earning per share of Rs 65 compared to five-year average of 16 times)

We expect Aurobindo Pharma to deliver 15% earnings compound annual growth rate over FY20-22E, led by new launches, increased market share in its key markets of the U.S. and Europe and lower financial leverage.

Click on the attachment to read the full report:

Motilal Oswal Aurobindo Pharma Company Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.