Sharekhan's research report on Aurobindo Pharma
Aurobindo Pharma Limited (Aurobindo) reported a weak performance for Q1FY2023, marred by soaring cost pressures, which resulted in steep gross margin contraction. Q1FY2023 results missed estimates. Management sees performance to be under stress at least for the near term due to overall elevated cost pressures and sustained higher freight cost in the US business. US business staged high single-digit growth, driven by pick up in volume across segments, thus providing growth visibility ahead.
Outlook
We retain our Hold recommendation on the stock with a revised PT of Rs. 640.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.