Aurobindo Pharma - Q4 FY21 Result Update - YES Securities

(Rating: BUY, TP: Rs1,100, Upside: 10%)

- We expect a strong jump in FY22/23 US injectables as rebound sets in on low base of FY21. Reckon injectables restructuring (Eugia being consolidated, likely plans lined up for Unit IV and overall injectables business) as the next trigger given the strong expected growth

- Vizag unit for Europe would drive growth in FY23 and improve European margins further from current double digit.

- Expect ramp up in Unit IV and Eugia along with monetization of Eugia and standalone injectable pipeline

- Gains from injectables to be largely offset by R&D at ~5.5-6% of sales in FY22/23. We cut FY23 estimate by ~3% on lower ARV sales but retain BUY.

Shares of AUROBINDO PHARMA LTD. was last trading in BSE at Rs.970.4 as compared to the previous close of Rs. 997.75. The total number of shares traded during the day was 316839 in over 8778 trades.

The stock hit an intraday high of Rs. 1007.95 and intraday low of 959.9. The net turnover during the day was Rs. 307738280.

Source : Equity Bulls

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