Motilal Oswal has recommended a “buy” rating for Aurobindo Pharma, with a target price of Rs 1350. The brokerage firm is optimistic about the company’s future prospects, driven by its strong product pipeline, increasing presence in the US market, and improving profitability.
Aurobindo Pharma has a diverse product portfolio with over 300 products across various therapeutic categories, including anti-infectives, cardiovascular, and central nervous system disorders. The company has a strong presence in the US market, with over 40% of its revenue coming from this geography. Motilal Oswal expects the company to continue to benefit from the growing demand for generic medicines in the US, driven by the increasing need for affordable healthcare options.
The company’s product pipeline is also a key driver of growth, with over 200 products in various stages of development. Aurobindo Pharma has a strong track record of obtaining regulatory approvals, with over 500 approvals from the US FDA to date. The company’s R&D capabilities and ability to develop complex products are expected to drive future growth.
Motilal Oswal also expects Aurobindo Pharma to benefit from the increasing trend of outsourcing by pharmaceutical companies. The company has a strong manufacturing presence, with multiple facilities in India and abroad, and is well-positioned to capitalize on the growing demand for contract manufacturing services.
In terms of financials, Aurobindo Pharma has reported strong growth in revenue and profitability over the past few years. The company’s revenue has grown at a CAGR of 15% over the past five years, while net profit has grown at a CAGR of 20%. Motilal Oswal expects the company to continue to report strong growth in the coming years, driven by its expanding product portfolio and increasing presence in the US market.
The brokerage firm has set a target price of Rs 1350 for Aurobindo Pharma, implying an upside of over 20% from current levels. The recommendation is based on the company’s strong fundamentals, including its diversified product portfolio, increasing presence in the US market, and improving profitability. Overall, Motilal Oswal is bullish on Aurobindo Pharma’s prospects and expects the company to continue to outperform the industry in the coming years.