Aurobindo Pharma share price surged over 2% in the early trading session on Tuesday, as the company reported a 80% jump in net profit, reaching Rs 909 crore in the Q4 results year-on-year. The shares soared as much as 2.42%, reaching an intraday high of Rs 1226.10 per share on the NSE.
On May 25, Indian pharma major Aurobindo Pharma Ltd reported an 80% rise in consolidated net profit, reaching Rs 909 crore for the January-March quarter of FY24, up from Rs 508 crore in the same period a year ago.
The company’s consolidated revenue for the quarter increased by 19% to Rs 7,580 crore, compared to Rs 6,473 crore in the same quarter last year.
EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) grew by 68% year-on-year to Rs 1,687 crore. The EBITDA margin for the quarter expanded to 22.3%, up from 15.5% in the same period the previous year.
Brokerages on Aurobindo Pharma
Motilal Oswal on Aurobindo Pharma
In a recent report on Aurobindo Pharma, Motilal Oswal has raised its earnings estimate by 9% for FY25 and 6% for FY26. This adjustment factors in improved profitability from the ramp-up of the Pen-G project, continued benefits from lower raw material prices, and robust sales traction in growth markets.
However, Motilal Oswal maintains a neutral rating, noting that the current valuation of 19 times FY25 estimated earnings per share (EPS) of Rs 66 and 17 times FY26 estimated EPS of Rs 74 leaves limited upside from current levels.
Motilal Oswal values Aurobindo Pharma at 18 times the 12-month forward earnings, setting a price target of Rs 1,300. The firm expects a 15% compound annual growth rate (CAGR) in earnings over FY24-26, driven by a 12% sales CAGR in the US market, a 10% sales CAGR in the EU market, and a 140 basis point margin expansion.
The report highlights that while Aurobindo Pharma continues to build its US generics pipeline, it is also making significant progress in biosimilars and the Pen-G project, which is expected to enhance sales prospects and profitability.
Prabhudas Lilladhar on Aurobindo Pharma
In a report on Aurobindo Pharma, Prabhudas Lilladhar has increased its FY25/FY26 earnings per share (EPS) estimates by 3.4% and 0.9%, respectively, due to anticipated higher margins. At the current market price, Aurobindo Pharma’s stock is trading at 16 times FY26 estimated price-to-earnings (P/E).
Aurobindo Pharma (ARBP) reported a Q4FY24 EBITDA of ₹16.8 billion, a 5% quarter-on-quarter increase, with an operating profit margin (OPM) of 22.3%, up 50 basis points QoQ. This was 12% above Prabhudas Lilladhar’s estimate.
The report forecasts further margin improvements, with US sales growth contingent on timely niche approvals and stabilization of pricing pressures in the base business.
It highlights ARBP’s multiple growth drivers, including investments in vaccines, injectables, biosimilars, and the Production Linked Incentive (PLI) scheme, which are expected to contribute from FY25 onwards.
Prabhudas Lilladhar values the company at 17 times FY26 estimated EPS, setting a target price of Rs 1,300 per share. The firm maintains an ‘Accumulate’ rating, noting that any adverse impact from the recent FDA inspection of the Eugia 3 facility poses a key risk to this outlook.
Elara Capital on Aurobindo Pharma
In its latest report on Aurobindo Pharma, Elara Capital has raised its core EPS estimates by 2% for FY25 and 7% for FY26, and introduced estimates for FY27. ARBP is currently trading at 19.9 times FY25 estimated price-to-earnings (P/E).
Elara Capital has increased its target price (TP) to Rs 1,384 from Rs 1,208, based on 18.0 times (up from 16.9 times) FY26 estimated P/E plus cash per share. The report notes that after a run-up of over 20% in the past three months, there is now limited upside potential. Consequently, Elara Capital has revised its rating to ‘Accumulate’ from ‘Buy’.
The report also highlights a key risk: the potential escalation of current Good Manufacturing Practice (cGMP) issues at the injectables plant, which could lead to an import alert.
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