Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStocks

Buy Aurobindo Pharma; target of Rs 786: Emkay Global Financial

Emkay Global Financial is bullish on Aurobindo Pharma has recommended buy rating on the stock with a target price of Rs 786 in its research report dated June 03, 2020.

June 05, 2020 / 09:37 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Emkay Global Financial's report on Aurobindo Pharma

ARBP depicted strong execution across markets and reported a 5% beat in revenues. This, along with a better mix, reflected in a sharp 290bpsqoq expansion in gross margin, driving EBITDA higher at Rs13.5bn (vs. our est. of Rs11.8bn) and margin beat (21.8%, +130bps vs. our est.). PAT stood at Rs8.4bn and was aided by lower taxes (21% vs. usual run rate of 25-26%). US revenues stood at $413mn vs. est. of $400mn. Sales in injectable (-22% qoq), Natrol (-11% qoq) and branded oncology (-23% qoq) were impacted by Covid-19 (lower hospital sales/lower footfalls). The oral solid segment grew strongly by 10% qoq.


Outlook

Gross margins at 59.4% were the highest in the last 10 quarters, led by a better product mix (higher US, lower API; also new ARV tenders at higher margin). Other expenses were up 140bps qoq, while R&D was slightly lower qoq.


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.

Broker Research
first published: Jun 5, 2020 09:37 am

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347