Aurobindo Pharma Ltd. share price target

ARBP: Strong quarter; OAI at Eugia-III an overhang. CPBI: In-line quarter; weak near-term outlook

Aurobindo Pharma (ARBP) delivered better-than-expected 4QFY24
performance, led by strong traction in US generics and sustained benefit
of reduced raw material prices. After two years of earnings decline, ARBP
has delivered a strong 46% YoY growth in earnings in FY24

We analyzed the biosimilar portfolio of Aurobindo Pharma (ARBP) to understand the progress as well as competitive dynamics for each product.

We recommend a Buy the stock for a target price of Rs 1,185/ implying an upside of 10% from CMP

SIEM:Strong topline, margins waver. EIM: Launch momentum continues. ARBP:Strong margin uptick. CRS: Weak quarter on soft demand, marketing expense. HINDWARE: Tough quarter but outlook healthy. Power: CERC draft tariff norms: Balancing risk-reward. Power: Q3FY24 Review - Spotlight on capacity additions

Q3 EBITDA/PAT surged 68%/90% YoY led by growth in US/EM revenue and ~700bps jump in operating margin

ABRP has a number of levers to grow its topline: 1) Generic injectibles, Eugia (USD$520 Mn sales) may grow by low double-digit growth based on value-added approval. Recommendation: BUY