Buy Aurobindo Pharma, target price Rs 554: Geojit Financial Services

Geojit Financial Services has buy call on Aurobindo Pharma with a target price of Rs 554. The current market price of Aurobindo Pharma is Rs 462.1. Time period given by analyst is a year when Aurobindo Pharma price can reach defined target.

Aurobindo Pharma, incorporated in the year 1986, is a Large Cap company (having a market cap of Rs 27073.29 Crore) operating in Pharmaceuticals sector.

Aurobindo Pharma key Products/Revenue Segments include Pharmaceuticals, Sale of services, Export Incentives and Scrap for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 6499.78 Crore, up 12.13 % from last quarter Total Income of Rs 5796.56 Crore and up 7.13 % from last year same quarter Total Income of Rs 6067.21 Crore. Company has reported net profit after tax of Rs 491.60 Crore in latest quarter.

The company’s top management includes Mr.K Ragunathan, Mr.K Nithyananda Reddy, Mr.P Sarath Chandra Reddy, Dr.M Sivakumaran, Mr.M Madan Mohan Reddy, Mr.P V Ramprasad Reddy, Mrs.Savita Mahajan, Mr.Girish P Vanvari, Dr.(Mrs.)Avnit Bimal Singh. Company has BSR & Associates LLP as its auditors. As on 31-12-2022, the company has a total of 59 Crore shares outstanding.

Investment Rationale
The US market share recovery, the Penicillin-G project, and the biosimilars business’ new product launches are expected to support the company in generating strong cash flow from FY25.

Promoter/FII Holdings
Promoters held 51.83 per cent stake in the company as of 31-Dec-2022, while FIIs owned 22.31 per cent, DIIs 14.9 per cent.