Aurobindo Pharma Q3 Review - Business Outlook Stable; Outcome Of U.S. FDA Inspection Remains Key: DRChoksey

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..DRChoksey Research Report.Aurobindo Pharma Ltd. had strong revenue growth driven by the U.S. formulation segment with the support of the specialty and injectable segment. The profitability margins have expanded with stable pricing in the U.S. and a trend of decline in raw material costs. The major concern with the company is the recent Food and Drug Administration inspection in the Eugia unit 3 plant which received nine observations. Due to this, Aurobindo Pharma has stopped manufacturing temporarily which will have an impact of $20 million in Q4 FY24E revenue. We believe this downside risk may persist unless they adhere to regulations. Overall, the business outlook remains stable, although with an emerging risk from the impact of U.S. FDA inspection in the injectables facility. Currently, the stock is trading at price-to-earning multiples of 15.7 times and 13.9 times based on FY25E/FY26E EPS, respectively. We introduce FY26E estimates; expect FY23-FY26E revenue compound annual growth rate of 10.5% and corresponding adjusted PAT CAGR of 29.6%. We apply a PE multiple of 14.2 times to our FY26E earnings per share of Rs 71.63 and maintain our target price of Rs 1,090 per share. Accordingly, we maintain our rating of 'Accumulate' on the stock, with a potential upside of 7.2%..Click on the attachment to read the full report:.Aurobindo Pharma Q3 Results Review - Niche Products Led Earnings Growth: Motilal Oswal.DISCLAIMERThis 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.

Aurobindo Pharma Q3 Review - Business Outlook Stable; Outcome Of U.S. FDA Inspection Remains Key: DRChoksey

Strong growth in specialty and injectable in the U.S. drives the top-line

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