{"id":133199,"date":"2022-08-15T10:46:40","date_gmt":"2022-08-15T14:46:40","guid":{"rendered":"https:\/\/44.250.171.167\/?p=133199"},"modified":"2022-08-15T10:46:41","modified_gmt":"2022-08-15T14:46:41","slug":"aurobindo-pharma-limited-q1-fy-2023-research-tear-sheet","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/aurobindo-pharma-limited-q1-fy-2023-research-tear-sheet\/","title":{"rendered":"Aurobindo Pharma Limited Q1 FY 2023 Research Tear Sheet"},"content":{"rendered":"\n

Stock Data<\/strong><\/p>\n\n\n\n

Ticker: AUROPHARMA<\/p>\n\n\n\n

Exchange :NSE and BSE<\/p>\n\n\n\n

Industry: Automobile<\/p>\n\n\n\n

Price Performance<\/strong><\/p>\n\n\n\n

Last 7 days    4.36%<\/p>\n\n\n\n

YTD                 -19.19%<\/p>\n\n\n\n

Last 12 months\u00a0\u00a0\u00a0\u00a0 -28.17%<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

It will be beneficial to invest in the stocks of Aurobindo Pharma. The company enjoys a  healthy ROE of 21.49% ROE which is an  important financial parameter. The company has a good operating margin of 26.04 % which is a good sign for profitability. The EPS has grown 65.86 % which is good for the company. The Debt to Equity ratio of 0.25 , is a strong indication for the company.Hence it will be beneficial to invest in this stock.<\/p>\n\n\n\n

Investment Thesis<\/u><\/strong><\/p>\n\n\n\n

Key Financial Highlights<\/u><\/strong>–<\/p>\n\n\n\n

Rs Crores<\/td>Q1FY23<\/td>Q1FY22<\/td><\/tr>
Revenue from operations<\/td>6,235.90<\/td>5,702.00<\/td><\/tr>
Gross Profit<\/td>3,349.20<\/td>3,335.80<\/td><\/tr>
EBITDA<\/td>964.7<\/td>1,209.40<\/td><\/tr>
Net Profit<\/td>520.5<\/td>770<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Revenue from operations stood  at Rs 6,235.9 crore, increased by 9.4% QoQ. Research & Development (R&D) spend stood at Rs 310 crore, which constitutes 5% of revenue. EBIDTA before Forex and Other income stood at Rs 964.7 crore. The EBITDA margin is 15.5%. The Net Profit stood at Rs 520.5 crore. The Basic & Diluted EPS is Rs 8.88 per share.<\/p>\n\n\n\n

Revenue Analysis on Segments- The revenue from US increased by 10.8% YoY and 8.9% on QoQ basis to Rs. 2,971 crores. The Europe revenue declined by 2.2% YoY to Rs 1,548 crore. The Revenue from Growth Markets increased by 30.8% YoY and accounted for 6.9% of revenue. The ARV revenue increased by 28.1% YoY to Rs 380 crore and accounted for 6.1% of revenue.  The API business earned revenue of Rs 906 crores,  increased 11.6% YoY and contributed14.5% to the consolidated revenues.<\/p>\n\n\n\n

Shareholding Pattern in Percentage<\/u><\/strong><\/p>\n\n\n\n

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The promoter holdings remain unchanged at 51.83% for Q1 FY23. As on last quarter the promoters pledge was 0.92% of shares. The total pledge stood at 14.97%.<\/p>\n\n\n\n

Company description<\/u><\/strong>–  Aurobindo Pharma Limited is an Indian pharmaceutical company. It was established in the year 1986. The founders include Mr. P.V. Ramprasad Reddy, Mr. K. Nityananda Reddy and a small group of highly committed professionals.The company started its operation in the year 1988-89 with a single unit manufacturing Semi-Synthetic Penicillin (SSP) at Pondicherry.<\/p>\n\n\n\n

The company is mainly focused on R&D and innovation. Aurobindo Pharma ranks second in India in the Pharmaceutical Industry. 90% of revenues is derived from international operations. The company has its presence in 150+countries. It mainly deals with generic drugs, over-the-counter drugs, vaccines, diagnostics, contact lenses and animal health. The vision of the company is \u201cto become a leading and an admired global pharma company, ranked in the top 25 by 2030\u201d.The key management personnel include K Nithyananda Reddy, Vice Chairman & Managing Director and K Ragunathan, Non Executive Chairman.<\/p>\n\n\n\n

Product Portfolio<\/u><\/strong>– The product portfolio includes Formulations, Custom Synthesis, Peptides, Aurozymes, R&D and API.<\/p>\n\n\n\n

Company Strategies<\/u><\/strong>– The company focuses on R&D. It has 5 R&D centres spread over 16000 square meters. It has 3 R&D centres in the USA with 1700+ scientists & analysts. It has world class talent and it has launched multiple affordable products across multiple Therapeutic areas.<\/p>\n\n\n\n

Regulatory Approvals<\/u><\/strong>– The company has filed 13 ANDAs including 4 injectables with USFDA in Q1 FY23. It has received final approval for 10 ANDAs including 4 injectables in Q1FY23. The company has launched 7 products including 5 Injectables during the quarter.<\/p>\n\n\n\n

The Securities and Exchange Board of India (SEBI) has issued a warning letter to Aurobindo Pharma for disclosing very limited information to the stock exchanges about an USFDA audit of the company\u2019s active pharmaceutical ingredients manufacturing facility (API) in Hyderabad.<\/p>\n\n\n\n

Industry Analysis –<\/u><\/strong>According to the Indian Economic Survey,  India\u2019s domestic pharmaceutical market is expected to reach US$ 65 billion by 2024 and further expected to reach US$ 120-130 billion by 2030.Even the pharmaceutical export sector had a massive growth. It grew by almost $10 billion in 8 years. The pharmaceutical industry is adopting technologies like AR\/VR, artificial intelligence (AI), machine learning 3 D printing for further development. The digital intervention has improved patient care, timely treatment, supervision, cost-effectiveness, drug development, Quality Affordability & Accessibility of medicines.<\/p>\n\n\n\n

Inherent Strengths- <\/u><\/strong>Aurobindo Pharma products have strong brand recognition in the pharmaceutical market. It has wide diversification of products with domestic and global presence. It has a strong  market leadership position in the Major Drugs industry. <\/p>\n\n\n\n

Merger & Acquisitions-<\/u><\/strong>Aurobindo Pharma acquired a 51% stake in Hyderabad-based GLS Pharma for a cash consideration of Rs 28.05 crore. This will expand the foothold of the company in oncology business in the domestic market.<\/p>\n\n\n\n

Aurobindo Pharma has acquired Hyderabad based firm Veritaz Healthcare for Rs 171 crore. This acquisition will help Aurobindo Pharma to launch marketing biosimilar and other products in India.<\/p>\n\n\n\n

Peer comparison-<\/u><\/strong><\/p>\n\n\n\n

Company Name<\/strong><\/td>MCap(Cr)<\/strong><\/td>TTM PE<\/strong><\/td>P\/B<\/strong><\/td>ROE(%)<\/strong><\/td><\/tr>
Aurobindo Pharma<\/td>34,772.53<\/td>13.13<\/td>1.41<\/td>10.77<\/td><\/tr>
Sun Pharma<\/td>2,19,167.25<\/td>56.35<\/td>4.29<\/td>6.81<\/td><\/tr>
Cipla<\/td>82,890.23<\/td>33.05<\/td>3.92<\/td>12.07<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

From an investor perspective, Aurobindo Pharma has a very good P\/B ratio compared to Sun Pharma & Cipla. It also gives ROE so the stocks will be a good choice for investment.<\/p>\n\n\n\n

Our View- The company enjoys a good P\/E ratio. It should concentrate more on improving the CAGR Return which is 0.5% in the last 3 years. It should concentrate more on product diversification and R&D.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n
\"\"<\/figure>\n","protected":false},"excerpt":{"rendered":"

Stock Data Ticker: AUROPHARMA Exchange :NSE and BSE Industry: Automobile Price Performance Last 7 days    4.36% YTD                 -19.19% Last 12 months\u00a0\u00a0\u00a0\u00a0 -28.17% It will be beneficial to invest in the stocks of Aurobindo Pharma. The company enjoys a  healthy ROE of 21.49% ROE which is an  important financial parameter. The company has a good operating margin of 26.04 % […]<\/p>\n","protected":false},"author":1796,"featured_media":58681,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1941,5,6352,9908,6350],"tags":[9138,1408,1115],"class_list":["post-133199","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-analysis","category-latest","category-research-summary","category-research-tear-sheet","category-trending-stocks","tag-pharma","tag-pharma-stocks","tag-pharmaceuticals"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":128324,"url":"https:\/\/alphastreet.com\/india\/aurobindo-pharma-q3-fy-2022-research-tear-sheet\/","url_meta":{"origin":133199,"position":0},"title":"Aurobindo Pharma Q3 FY 2022 Research Tear Sheet","author":"sreerupa","date":"March 23, 2022","format":false,"excerpt":"Aurobindo Pharma Limited\u00a0is an Indian\u00a0pharmaceutical company. 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