Aurobindo Pharma Ltd. share price target

Eugia unit 3 capacity utilization to increase to 60-65% from 50% in Q3FY25. We expect capacity utilisation to rise above 70% in FY26E

We maintain our BUY recommendation on Aurobindo Pharma with a target price of Rs 1,500/share

Aurobindo Pharma’s Q3FY25 performance was below our expectation due to lower-than-anticipated sales in US while Europe (up 22.7% YoY) and growth markets (up 39.2% YoY) maintained traction. EBITDA margin was 20.4% despite lower gRevlimid sales and INR 600mn cost of Pen-G plant.

We maintain our BUY recommendation on Aurobindo Pharma with a target price of Rs 1,460/share.

Quarterly revenue reached Rs. 7,796 crore, up 8% y-o-y and 3% q-o-q, exceeding our estimates by 1%, while PAT was Rs. 817 crore, showing a 9% y-o-y increase but an 11% q-o-q decrease, falling 19% below our estimates.

We have BUY on the stock

Aurobindo Pharma (ARBP) delivered in-line operational performance in 1QFY25. The robust execution across key markets was partly offset by seasonality and higher remediation costs for the quarter.

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