Aurobindo Pharma Q3 Results Review - Niche Products Led Earnings Growth: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Aurobindo Pharma Ltd. delivered better-than-expected Q3 FY24 performance. The increased contribution from niche products in the U.S. generics segment and steady traction in the Europe segment enabled better profitability for Aurobindo Pharma in Q3 FY24. Post United States Food and Drug Administration inspection at Eugia Unit-3, Aurobindo Pharma is implementing various measures to not only address the issues highlighted by USFDA, but also maintain compliance. We increase our earnings estimate by 3% for FY25/FY26 to factor inCost savings due to captive consumption of Pen-G, Enhanced profitability of EU business. However, this increase will be partly offset by Temporary reduction in business from Eugia Unit-3. We value Aurobindo Pharma at 16 times 12 months forward price-to-earning to arrive at a price target of Rs 1,080..The company is working on multiple fronts – Strengthening abbreviated new drug application pipeline,Building biosimilar portfolio, Capex under production linked incentive scheme to enhance sales as well as earnings growth. Accordingly, we factor 17% earnings over FY24-26. We reiterate our 'Neutral' stance on the stock on limited upside from the current levels.Click on the attachment to read the full report:.Prestige Estates Q3 Results: Profit And Revenue Decline, Misses Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Aurobindo Pharma Q3 Results Review - Niche Products Led Earnings Growth: Motilal Oswal

Product mix benefit and better operating leverage led improved margins.

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Aurobindo Pharma Q3 Results Review - Niche Products Led Earnings Growth: Motilal Oswal

Product mix benefit and better operating leverage led improved margins.

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