By Aditya Raghunath
Investing.com — The last week has seen a spate of brokerages recommend a buy on large-cap pharma company Aurobindo Pharmaceuticals. The stock is trading at Rs 856.85 right now. The average target price that brokerages have given it is Rs 990, that’s an upside of 15.65% from current levels.
AXIS Securities (NS:) says that Aurobindo Pharma Ltd. (NS:) has witnessed strong growth in different business verticals like injectables, ARV (anti-retroviral), API (active pharmaceutical ingredient), and growth markets. Aurobindo plans to incur capex of $ 180 million – $200 million in injectables and biosimilars to drive growth in upcoming years. The brokerage has given it a target of Rs 975.
Sharekhan is very confident about the company’s US business. It says it will stage a ‘marked improvement led by a sturdy pipeline of new products, expected traction in the lucrative injectables space and growth in the recently launched products’. It predicts that Aurobindo’s sales and PAT (profit after tax) are expected to clock a CAGR (compounded annual growth rate) of 10% and 14%, respectively, over FY2020-FY2023. Sharekhan’s target is the most optimistic of all: Rs 1,024.
ICICI Securities Ltd (NS:) has given Aurobindo a target of Rs 970.
The company reported sales of Rs 6,377.91 crore for the quarter ended September 30, 2020, up 15.58% from the corresponding quarter in 2019. It reported a net profit after tax of Rs 826.18 crore in the September quarter.
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