DINESH

Aurobindo Pharma

Industry: Pharma B2C
Latest CMP 1,622
Today's Change ▼ -2.48%
52-Week High / Low 1,667 | 1,022
Price Date: 14-Aug-2026
Recommendation Buy
Target Price 1,893
Expected Upside 8.0%
Forecast Horizon 2 Years
Historical CAGR 18.4%
1,000 Invested 17-Aug-2006
Today's Value 29,474
Investment Period 20 Years

Stock Snapshot

Post Results Return
+5.3%
Mild Positive Re-rating
1-Year Target Price
1,809
2-Year Target Price
1,893
52-Week High / Low
1,667 / 1,022
20-Day Return
+4.0%
Market Cap (Cr.)
93,336
Current PE
26.5
P/BV Ratio
2.5
Dividend Yield
0.4%
Industry PE
39.0

Price Performance

Basis of our Recommendation

Aurobindo Pharma is navigating a pivotal transition from a traditional generics model to a diversified focus on high-value biologics and contract development and manufacturing organization (CDMO) services. Management's emphasis on scaling its CuraTeQ Biologics division and the establishment of TheraNym as a dedicated biologics CDMO are critical developments that enhance long-term revenue visibility and align with Vista's forecast of accelerating revenue growth. The recent acquisition of Lannett is expected to bolster Aurobindo's U.S. presence, although the company faces challenges from pricing pressures and regulatory hurdles. Vista's outlook anticipates stable margins supported by operational efficiencies and a robust pipeline of specialty pharmaceuticals. The favorable macro environment, characterized by improving pricing power and currency depreciation, further supports Aurobindo's growth trajectory. Over the next 12-24 months, key opportunities include the successful commercialization of biosimilars and the integration of Lannett, while watchpoints include regulatory execution risks and ongoing cost pressures. Overall, Aurobindo's strategic pivot positions it well for sustainable growth, despite the competitive landscape and market challenges

👍 Why We Like This Stock

  • Management's focus on scaling the biologics division and the establishment of TheraNym enhances long-term revenue visibility
  • The acquisition of Lannett is expected to strengthen Aurobindo's U.S. market presence and operational synergies
  • Improving pricing power and currency dynamics in the Indian pharmaceutical sector support revenue growth

Things To Watch Out For

  • Ongoing pricing pressures and regulatory hurdles in the U.S. market may constrain growth in the near term
  • Rising operating costs, including raw materials and logistics, could impact margins despite operational efficiencies
  • Execution risks associated with the integration of Lannett and the commercialization of new biosimilars remain significant

Key Parameters

Balance Sheet Strength
Conservatively Financed
Market Share
Stable
Industry Outlook
Improving
Analyst View
Buy
Dividend History
Regular
FII Holdings
Increasing

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 29,002 31,724 33,653 36,258 41,839
Profit Before Tax (Cr.) 4,548 5,032 5,177 5,936 7,008
PBT Margin 15.7% 15.9% 1538.3% 16.4% 16.7%
Net Profit (Cr.) 2,702 3,345 3,418 3,947 4,657
Earnings Per Share 47.0 58.2 59.4 68.6 80.9

Analyst Recommendations

Broker Recommendation Target Price Date
Axis Securities ▲ Buy 1,770 07-Aug-2026
Bernstein ► Accumulate 1,498 07-Aug-2026
BofA ▲ Buy 1,800 07-Aug-2026
CLSA ► Hold 1,600 07-Aug-2026
Citigroup ▼ Sell 1,270 10-Jul-2026
DAM Capital ▲ Buy 1,767 25-May-2026
Elara Capital ▲ Buy 1,805 25-May-2026
Goldman Sachs ▲ Buy 1,750 07-Aug-2026
HDFC Securities ► Add 1,570 25-May-2026
HSBC ▲ Buy 1,900 07-Aug-2026
ICICI Securities ▲ Buy 1,830 07-Aug-2026
Kotak Securities ▼ Sell 1,365 15-Jun-2026
Macguire ▼ Underperform 1,300 06-Aug-2026
Motilal Oswal ▲ Buy 1,860 07-Aug-2026
Nuvama ▲ Buy 1,680 25-May-2026
Prabhudas Liladhar ► Hold 1,600 07-Aug-2026
Consensus Recommendation ▲ Buy
Consensus Target 1,680
Coverage 16 Analysts
Analysts' Viewpoint
Aurobindo Pharma's transition from generics to a diversified healthcare entity, focusing on high-margin biosimilars and biologics, is a key driver of analyst optimism. The acquisition of Lannett enhances its portfolio in respiratory and controlled substances, offering synergy potential. Analysts highlight the company's strong performance in European and ROW markets, while acknowledging risks related to regulatory compliance and integration challenges. Upcoming catalysts include the commercial launch of Advair and US FDA biosimilar filings.

Company Overview

Show Company Profile

Aurobindo Pharma Limited, a biopharmaceutical company, develops, manufactures, commercializes, and sells generic pharmaceuticals, active pharmaceutical ingredients (APIs), and injectables. The company offers formulation in form of oral solids, liquids, injectables, vaccines, and metered dose inhalers; and APIs, biosimilars, and peptides targeting therapeutic areas, such as central nervous system, cardiovascular, respiratory, antibiotics, anti-retroviral, anti-diabetics, gastroenterology, oncology, and dermatology. It also provides antiretroviral drugs for the people and children living with HIV; and API space for sterile and non-sterile penicillin's, cephalosporins, penems, and non-beta lactams. The company has operations in India, the United States, Europe, Puerto Rico, and internationally. The company was incorporated in 1986 and is headquartered in Hyderabad, India.