Aurobindo Pharma - Q3 FY21 Result Update - YES Securities

(Rating: BUY, TP: Rs 1,080, Upside: 13.2%)

- Strong momentum in injectables business to support US business as acceleration unlikely in slow growing oral solids

- Steady margin uptick over next 2 years as better margin injectables business offset to an extent by lackluster oral solids profitability

- Net cash balance sheet offers comfort; as also gives firepower to plug gaps in US portfolio

- FY21 estimates change as gains from Natrol sale are crystalized; minor 2% cut to FY23 EPS on marginally lower US sales assumption

- BUY stays on unchanged 15x PE; sustained execution to drive stock upside

Shares of AUROBINDO PHARMA LTD. was last trading in BSE at Rs.929.9 as compared to the previous close of Rs. 935.1. The total number of shares traded during the day was 100809 in over 2568 trades.

The stock hit an intraday high of Rs. 952 and intraday low of 924.1. The net turnover during the day was Rs. 94128381.

Source : Equity Bulls

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