Emkay Global NSE 1.36 % has given a buy rating to Aurobindo Pharma NSE 1.05 % with a target price of Rs 1000. The share price moved up by 0.79 percent from its previous close of Rs 838.95. The stock’s last traded price is Rs 845.60. Aurobindo Pharma Ltd., incorporated in the year 1986, is a Large Cap company (having a market cap of Rs 49561.62 Crore) operating in the Pharmaceuticals sector. Financials For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 6377.91 Crore, up 9.30 % from last quarter Sales of Rs 5835.23 Crore and up 15.58 % from last year same quarter Sales of Rs 5518.27 Crore Company reported net profit after tax of Rs 826.18 Crore in the latest quarter.
Investment Rationale The stock is trading at an attractive valuation of 12x on FY23E EPS. It values the company at ~15x P/E on our FY23E EPS, suggesting an intrinsic value of Rs1,000/share. It believes that a vaccine manufacturing deal is likely in the near term, offering an additional upside to the estimates.
Promoter/FII Holdings Promoters held a 52 percent stake in the company as of Sept 30, 2020, while FIIs held 23 percent, DIIs 13.7 percent, and public and others 11.3 percent.
