Aurobindo Pharma: Motilal Oswal Maintains 'Buy' Citing Multiple Growth Triggers, Sees Upto 18% Upside

Aurobindo Pharma’s diversification and policy tailwinds signal potential upside, says Motilal Oswal, retaining 'Buy' call.

Aurobindo Pharma has the highest US generics sales compared to any other listed company in India, with a maximum number of ANDA approvals.

(Representative image. Photo source: Unsplash)

Product development, as well as backward integration for the manufacturing process, has enabled Aurobindo Pharma's healthy profitability despite consistent price erosion (albeit at reduced intensity).

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Motilal Oswal Report

Motilal Oswal has reiterated its Buy rating on Aurobindo Pharma Ltd., setting a target price of Rs 1,430, implying an 18% upside from the current market price of Rs 1,208.

The brokerage expects robust growth across key segments, supported by strategic investments, policy tailwinds, and diversification into high-value businesses.

Motilal Oswal projects Aurobindo to deliver a CAGR of 9% in sales, 14% in Ebitda, and 21% in PAT over FY26–28, supported by margin expansion and reduced leverage.

EPS is expected to rise from Rs 62.4 in FY26E to Rs 91.2 in FY28E.

At the current valuation of 19.3x FY26E earnings, the stock trades at a discount to its growth prospects. The brokerage values Aurobindo Pharma at 16x forward earnings, maintaining its Buy call with a target price of Rs 1,430.

Click on the attachment to read the full report:

Motilal Oswal Aurobindo Pharma Update.pdf
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