The 45 reports from 12 analysts offering long term price targets for Aurobindo Pharma Ltd. have an average target of 853.60. The consensus estimate represents an upside of 51.95% from the last price of 561.75.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2019-07-03||Aurobindo Pharma Ltd.||Motilal Oswal||596.20||720.00||596.20 (-5.78%)||28.17||Buy|
The WL highlighted that the company has initiated recalls/additional process controls and testing of all manufactured batches of certain API, post the mention by regulatory agencies. There has been failure to ensure that equipment surface in contact with the API does not alter it beyond the established specification. Though the company has engaged a consultant to evaluate operations, the WL highlighted that the firms management will be responsible for fully resolving all deficiencies to ensure CGMP compliance. The WL also indicated that the USFDA has cited similar CGMP observations at other sites Unit I and Unit IX. the USFDA would require comprehensive measures to ensure adequate quality oversight of operations/equipment that could affect the drug quality, including any revised qualification and evaluation procedures. The USFDA would also require an update on the CAPA plans already initiated by ARBP, in addition to a thorough review of all API batches made at ARBP sites, in terms of impurities above reported thresholds.
|2019-06-28||Aurobindo Pharma Ltd.||Sharekhan||610.90||710.00||610.90 (-8.05%)||26.39||Hold|
A Warning Letter has been issued to Aurobindo Pharma Limited (Aurobindo) for its Unit-XI, an Active Pharmaceutical Ingredient (API) unit in Srikakulam, one of the three plants that received Official Action Indicated (OAI) status in May 2019. The letter mainly pertains to the ongoing issues regarding impurities in Sartan's. The company proposes to enter into dialogue with the US FDA over the next 1520 days to decide a future course of action. From Unit XI, the company...
|2019-06-21||Aurobindo Pharma Ltd.||ICICI Securities Limited||603.00||705.00||603.00 (-6.84%)||25.50||Buy|
ICICI Securities Limited
Aurobindo Pharma has received a warning letter from the USFDA for Unit XI, API manufacturing facility in Srikakulam district, Andhra Pradesh. This action follows the earlier inspection of the site by the USFDA and issuance of Form 483 with three observations in February 2019. Post inspection, USFDA had classified this plant as Official Action Indicated (OAI). Apart from Unit XI, the company has OAI status on Unit I (API facility) and Unit IX (Intermediate facility). Unit XI is the largest API plant of the company followed by Unit I. According to the management, there are just ~15...
|2019-06-03||Aurobindo Pharma Ltd.||Way2Wealth||657.00||657.00 (-14.50%)||Results Update|
Aurobindo Pharma's revenue grew 31% on a YoY basis to `5292 crs. in Q4. Growth was led by all business segments with the US and growth markets reporting sharp growth of 43% and 38% respectively on a YoY basis. Consolidated EBITDA increased to `1,060 Cr vs. `804 Cr in Q4 last year, an increase of...
|2019-05-30||Aurobindo Pharma Ltd.||Nirmal Bang Institutional||684.50||868.00||684.50 (-17.93%)||54.52||Buy|
Nirmal Bang Institutional
Aurobindo Pharma's (APL) 4QFY19 revenues at Rs52,922mn were flat QoQ and 6%/3.7% above our/consensus estimate, respectively. The Formulations business grew 34.1% YoY, however, QoQ remains soft. The US business contributed 47% of sales and was flat on a sequential basis and included US$8mn of revenues from Spectrum portfolio integration. Europe and ARV business were muted on a QoQ basis. The emerging market revenues shrank 15% QoQ. Henceforth, the key revenue and earnings drivers for Aurobindo pharma in FY20 are the acquired portfolio of Sandoz and Spectrum pharma. We estimate Sandoz portfolio to deliver about 22% EBITDA margins, while the Spectrum pharma portfolio to deliver about 45-50% EBITDA margins. The spectrum portfolio...
|2019-05-29||Aurobindo Pharma Ltd.||HDFC Securities||685.40||800.00||685.40 (-18.04%)||42.41||Buy|
Having fallen 18-20% over the trailing month on regulatory concerns related to three API/intermediate plants, the stock is now available at 14x FY20E EPS, a ~15% discount to its five-year historical average. We believe the concerns are misplaced as only 5-6 products (out of 100+ pending) are dependent on these plants. With high visibility on FY21E EPS of Rs 53.2 driven by the Sandoz acquisition, we see this as a good entry point for investors and expect at least ~15% upside in the near term as this acquisition materializes. Upgrade to BUY. We upgrade ARBP to BUY owing to attractive valuations after the recent fall in stock price. Our TP at Rs 800 is unchanged (15x FY21E EPS).
|2019-05-29||Aurobindo Pharma Ltd.||BOB Capital Markets Ltd.||685.40||810.00||685.40 (-18.04%)||44.19||Buy|
BOB Capital Markets Ltd.
Progress on OAI and Sandoz integration key stock catalysts Aurobindo Pharma (ARBP) saw soft operating leverage in Q4 despite best-ever US sales at US$ 352mn, partly led by Spectrum integration and higher injectable sales. Revenue/EBITDA beat estimates by 8%/13% but gross margins at 55.2% saw moderate expansion QoQ (provisioning for Valsartan recall). Management is fairly confident about FY20 growth and expects Sandoz FTC approvals by Jul'19 end. We retain our FY20/FY21 EPS of Rs 49/Rs 52. Sandoz integration...
|2019-05-29||Aurobindo Pharma Ltd.||ICICI Securities Limited||685.40||850.00||685.40 (-18.04%)||51.31||Buy|
ICICI Securities Limited
US key growth driver; acquisitions to strengthen US basket After filing ANDA in the US in 2003, the company has come a long way as current ANDA filings are at 541. US revenues have grown from ~US$100 million in 2009 crossing $1 billion sales as on 2017. In rupee terms, US sales have grown at 17% CAGR to | 9031 crore in FY15-19. US formulations now constitute 46% of total turnover, up from 30% in FY13. Post acquisition of Sandoz' US dermatology and oral solid businesses, Aurobindo will become the second largest generic player in the US by number of prescriptions. Due...
|2019-05-29||Aurobindo Pharma Ltd.||Motilal Oswal||685.40||840.00||685.40 (-18.04%)||49.53||Buy|
Sales growth trends comforting; approval pace/execution hold key US/growth market/ARV and favorable FX drive revenues: Sales increased 31% YoY to INR53b (our estimate: INR49b), primarily led by sales growth of 30% YoY in US formulations (USD353m; 47% of sales), 38% YoY in growth market (INR3b) and 96% YoY in ARV (INR3b). EU sales were up 14% YoY at INR13b, partly led by the acquisition of Apotex operations. Moreover, ARBP exhibited healthy traction in non-betalactum API sales (+25% YoY to INR3b). Lower opex counterbalances gross margin contraction: Gross margin (GM)...
|2019-05-18||Aurobindo Pharma Ltd.||BOB Capital Markets Ltd.||670.10||810.00||670.10 (-16.17%)||44.19||Buy|
BOB Capital Markets Ltd.
Scenario analysis for OAI units warning letter partly priced in The USFDA has classified three of Aurobindo Pharma's (ARBP) facilities API units 1 & 9 and intermediate unit 11 under OAI (official action indicated). These units were inspected in Feb'19 and received a total of 14 observations. Common 483s were around a lack of root cause analysis and production equipment validation. While existing sales won't be hit, we believe resolution at these sites will be key to future growth. In the worst case (WL), there could...
|2019-03-20||Aurobindo Pharma Ltd.||Prabhudas Lilladhar||777.75||952.00||777.75 (-27.77%)||69.47||Buy|
resolution three times in past 18 months showcased commitment and cohesive organizational structure that professionally manages processes without dependence on key personnel. Noticing the operational risk among large peers in key markets, ARBP strategically envisaged alleviation of concentration risk and regulatory risk on key products/ plants/ markets. It's newly commissioned Unit-16, made to replicate products of Unit-12 for US market, additionally supplies injectable...
|2019-03-13||Aurobindo Pharma Ltd.||Angel Broking||767.00||890.00||767.00 (-26.76%)||58.43||Buy|
Aurobindo Pharmaceuticals (APL) has a big relief in form of Establishment Inspection report (EIR) for Unit-4 facility in which the USFDA has closed issued Form 483. The Form 483 is issued to a firms management at the conclusion of an inspection when an investigator(s) has observed any conditions that may constitute violations of the Food
|2019-02-14||Aurobindo Pharma Ltd.||Way2Wealth||748.95||748.95 (-24.99%)||Results Update|
Aurobindo Pharma's revenue grew 22% on a YoY basis to `5270 crs. in Q3. Growth was led by all business segments and markets. US and growth markets reported growth of 27% and 36% respectively on a YoY basis. Consolidated EBITDA increased to `1,086 Cr vs. `1,025 Cr in Q3 last year, an increase of...
|2019-02-11||Aurobindo Pharma Ltd.||Nirmal Bang Institutional||764.65||866.00||764.65 (-26.54%)||54.16||Accumulate|
Aurobindo Pharma- ACCUMULATE- 3QFY19 Result Update- Strong Revenue Growth, but gross margins disappoint
Nirmal Bang Institutional
Aurobindo Pharma's (APL) 3QFY19 revenues at Rs52,697mn were up 11% QoQ and also 7.9%/8.6% above our/consensus estimate, respectively. The growth was led by a strong performance across geographies/businesses, but the surprise element was Europe and ARV business which grew QoQ 12% and 15%, respectively. Going forward, ARV performance may sustain, but Europe is expected to normalise at a euro150mn run rate as against euro 162m witnessed during 3QFY19. Despite a strong show on revenue front, net earnings stood at Rs7,122mn (up 16% QoQ) and were 4.2% below our estimate, but 6.4% above consensus estimate. Net earnings growth was subdued as cost-of-sales margin increased by 240bps (QoQ), R&D; costs...
|2019-02-11||Aurobindo Pharma Ltd.||Reliance Securities||764.65||764.65 (-26.54%)|
|2019-02-11||Aurobindo Pharma Ltd.||Prabhudas Lilladhar||764.65||952.00||764.65 (-26.54%)||69.47||Buy|
The Q3FY19 sales, adj. EBITDA and PAT beat our estimates by 9%, 3% and Change in Estimates | Target | Reco 8% respectively. While the injectable business was in line with guidance, its flat value erosion of US generics QoQ and efficient execution of new business...
|2019-02-09||Aurobindo Pharma Ltd.||HDFC Securities||761.20||800.00||761.20 (-26.20%)||Target met||Neutral|
Maintain NEUTRAL with a revised TP of Rs 800 (15x Dec-20E EPS). It is encouraging to see the US base businesses of many Indian pharma companies recovering sharply in 3QFY19, largely led by exit of big players. However, our concerns over Aurobindo (ARBP) remain related to the Sandoz acquisition, which will be completed by 1HFY20. We strongly believe that this acquisition will expand ARBPs exposure to commodity products and the portfolio will be highly prone to future competition.
|2019-02-08||Aurobindo Pharma Ltd.||Motilal Oswal||761.20||940.00||761.20 (-26.20%)||67.33||Buy|
grew ~22% YoY to INR52.7b (v/s our est. of INR47.6b), largely led by the US (~46% of sales) and API segment (~17% of sales). The US sales were up ~22% YoY, while API segment sales were up ~20% YoY. Other geographies also 8 February 2019 reported healthy growth. Gross margin (GM) contracted 340bp YoY to 55% (-200bp QoQ), partly due to one-time provision for penalty on supply failure of some products in the US market, and change in product mix. EBITDA margin also contracted ~300bp YoY (-100bp QoQ) to 20.6%. R&D; spend was higher by ~120bp YoY to 4.8% (as % of sales), partially offset by lower other expense (down ~150bp YoY). Forex gain stood at INR51m v/s INR7.3m YoY. Adjusting for forex gain and acquisition related exceptional expense, PAT increased by ~5% YoY to INR6.9b (v/s our est.
|2019-02-08||Aurobindo Pharma Ltd.||ICICI Securities Limited||761.20||915.00||761.20 (-26.20%)||62.88||Buy|
ICICI Securities Limited
Aurobindo Pharmaceuticals' Q3FY19 numbers were higher than Idirect estimates due to higher-than-expected sales in all geographies except the US. Revenues grew 21.5% YoY to | 5269.7 crore (I-direct estimate: | 5022.3 crore) mainly due to 27.4% YoY growth in the US EBITDA margins contracted 344 bps YoY to 20.7% (I-direct estimate: 21.0%) mainly due to lower gross margins. EBITDA grew 6.2% to | 1089 crore against I-direct estimate of | 1055.5 crore Adjusted net profit grew 25.4% YoY to | 737.3 crore (I-direct estimate: | 669.1 crore). The delta vis--vis EBITDA was due to...
|2019-02-08||Aurobindo Pharma Ltd.||Angel Broking||761.20||890.00||761.20 (-26.20%)||58.43||Buy|
For 3QFY2019, Aurobindo Pharma (APL), the company posted sales of `5,175cr v/s. `4,269cr in 3QFY2018, a yoy growth of 21.2%. On the operating front, the EBITDA margin came in at 19.2% v/s. 22.5% in 3QFY2018. YoY decline is on the back of sales of certain high margin products in 3QFY18. Sequentially EBDITA margins expanded by