NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
HDFC Securities Institutional Equities
Aurobindo Pharma Ltd. shares are likely to be in focus after HDFC Securities reiterated its positive stance on the stock, citing the strategic acquisition of Lannett as a key growth driver for its US business.
The brokerage has maintained its ‘Add' rating on the stock while raising the target price to Rs 1,630 from Rs 1,570 earlier, implying moderate upside from current levels.
Lannett acquisition strengthens US play
Aurobindo recently received approval from the US Federal Trade Commission (FTC) for its acquisition of Lannett's US business, clearing a key regulatory hurdle.
The deal, valued at about $250 million, is seen as optically inexpensive, with attractive valuation multiples including EV/Ebitda of ~5.45x.
HDFC Securities believes the acquisition will help Aurobindo expand its US manufacturing footprint, diversify its product portfolio, and gain access to additional channels such as government business through local manufacturing capabilities.
Click on the attachment to read the full report:
ALSO READ: Astral Target Price Trimmed, Yet Motilal Oswal Remains Bullish — What's Driving the Call?
DISCLAIMER
This report is authored by an external party. NDTV Profit 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 author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
