Two Leading Brokerage Firms Asks Investors to Buy This MNC Pharma Stock

Motilal Oswal has given a neutral view and Prabhudas Lilladher has upgraded their view as buy on the stock of Aurobindo Pharma. Analysts of both these leading brokerages believe that the share price of this multinational pharma company will rally significantly. Check the details below.

Motilal Oswal gives 'Neutral' View on Auroindo Pharma Stock : target price Rs 500

Based on the analyst's estimates of Motilal Oswal, the share price of Aurobindo Pharma will probably rise by upto 7%. The brokerage report has raised the estimates on stock price of this MNC pharma giving a price target of Rs 500 per share.

In the brokerage report, the reasons for giving a 'neutral' view on Aurobindo Pharma is explained. "The earnings CAGR is expected to be moderate at 14% over FY23-25. Adequately factoring this upside potential into our valuation, we reiterate our Neutral stance on the stock. We raise earnings estimate for FY23/FY24/FY25 by 4.5%/2%/2%, respectively, to factor in; the impact of reduction in price erosion on the base business, robust new launches in US/EU and higher R&D spendon biosimilars. We value Aurobindo Phara at 11x 12M forward earnings to arrive at price target of Rs 500."

Prabhudas Lilladher gives 'Buy' View on Auroindo Pharma Stock : target price Rs 565

Analyst of Prabhudas Lilladher sees a potential upside of upto 20.47% in the share price of Aurobindo Pharma. The brokerage report states that it has cut down its estimates, but upgraded its view to buy stock, giving a price target of Rs 565 per share. "We cut our FY24/25E EPS est. by 7%/3% to factor in lower margins and upgrade to 'BUY' from Accumulate with revised target price of Rs565 based on 12x Dec 2024E earnings. Aurobindo Pharma's Q3FY23 revenue growth of 7% YoY was healthy across US and EU markets, however higher R&D spend and lower GMs led to in-line EBITDA. We expect margin trajectory to improve from FY24. However, pick up in US sales hinge on timely niche approvals along with stabilization of pricing pressure in base business. We believe Aurobindo Pharma has multiple growth drivers in place with investments in vaccines, injectables, biosimilars and PLI, which are expected to be reflected from FY24.

Aurobindo Pharma's Share price movement

Aurobindo Pharma share's current market price is Rs 472.15 per share, it has steeply fallen by 30.64% in one year and 10.41% in three years. Its 52-week high is at Rs 730 per share and 52-week low at Rs 397.30 per share. The free float market capitalisation of the mid cap company is Rs 13,279.24 crore.

Disclaimer

The stock has been picked from the brokerage report of Prabhudas Liladhar and Motilal Oswal the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.