Aurobindo Pharma the Golden Gem of Investment

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by tolentino.gomes, Mar 23, 2015.

  1. tolentino.gomes

    tolentino.gomes New Member

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    Last 2 sessions of trading Aurobindo is down almost 5% and everyone is worried thinking whether to square off with loss or hold. I also bought this stock not on recommendations but checking the stock fundamentals and their quarterly performance, growth and expansion. I suggest whoever is holding this stock please hold even if you are in loss more than 5% or 10%. You will surely cover your loss with a period of less than 3 months.
     
  2. gareebnawab

    gareebnawab New Member

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    yeah that true and if possible add more on dips, because dips are temporary :p. Unless there is change fundamentals or any regulatory issues there is no need to work.

    Buy Right.. Sight Tight..!
     
  3. stockjeet18

    stockjeet18 Member

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    Please tell the growth triggers of auro pharma ... Abt their product pipeline and other things
     
  4. abhay6605

    abhay6605 Member

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    why is auro pe just 20.4 compared to peers 14 pharma co more than that.avg pe neer to 30
     
  5. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    This query is answered by Ravi Dharamshi Of ValueQuest

    https://rakesh-jhunjhunwala.in/the-stock-picks-of-ravi-dharamshi-of-valuequest/
     
  6. tolentino.gomes

    tolentino.gomes New Member

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    Please hold till results. Aurobindo will definitely touch its all time high as there are good news in pipe line next month.
     
  7. Vidhi Khanna

    Vidhi Khanna Active Member Staff Member

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    Valuations of Aurobindo Pharma cheaper than many frontline peers; further upside likely: Anand Tondon

    https://articles.economictimes.indiatimes.com/2015-03-19/news/60249529_1_aurobindo-pharma-natco-pharma-anand-tandon
     
  8. Vidhi Khanna

    Vidhi Khanna Active Member Staff Member

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    Aurobindo Pharma: Regaining traction: Strong US niche product pipeline, turnaround in Europe, focus on ARV biz to drive margins & growth

    Aurobindo Pharma, after correcting about 20 per cent from Rs 1,264 in February, has pared a large part of the loss, closing at Rs 1,221 on Tuesday. The correction was due to some disappointment on the margin front in the December 2014 quarter, US Food and Drugs Administration (FDA) inspections at its manufacturing units and also the proposed QIB worth $350 million that would have led to some equity dilution, say analysts.

    Aurobindo has a strong niche product portfolio in the US market, comprising injectables, oral contraceptives, peptides and ophthalmic products.

    Analysts at HSBC, in their February note, had said that in the near-term controlled-substances (under AuroLife), high value oral solids, triple combination HIV products and nutraceuticals will drive the company's US business. The filing rate is aggressive (78 ANDAs filed in FY14), which has led to the company having the largest number of pending ANDAs (181) in the US.

    While new product approvals in the US are margin drivers, Aurobindo is now also selectively bidding for better-margin in tenders of anti-retroviral drugs (HIV treatment).

    According to IMS data, Aurobindo’s trailing three months (T3M) US sales in January'15 marked a growth of three per cent over T3M sales in December 2014. This was the third highest growth after Dr Reddy’s four per cent and Cadila’s eight per cent growth. Analysts at Nomura say that T3M sales of anti-hypertensive Diovan generic increased 55 per cent.

    Europe is also likely to become a growth driver post acquisition of Dublin-based Actavis Plc’s commercial operations in Europe.

    Analysts at Citi say Aurobindo has rationalised the product basket, integrated front ends and gained volumes in its own portfolio. Annual earnings before interest, tax, depreciation and amoritisation losses are set to come down from €20 million (when acquired) to €10 million in FY15, and likely to break-even in FY16. Aurobindo is setting up a plant in Vizag to cater to Europe. Supplies should start in FY17 and drive margins to peak levels of 14-15 per cent.

    Analysts at HSBC had said the Ebitda margin in first half of FY15 was 22 per cent, well ahead of the average of 18 per cent for FY09-13; which they feel is sustainable and expect return on invested capital (ROIC) to improve to 23.7 per cent by FY17 from 20 per cent in FY15. An improvement in free cash flow should also help to reduce leverage. The QIB, if approved, will further reduce net debt/equity to sub-0.5x levels, believe analysts at HSBC. While analysts as Ranjit Kapadia at Centrum Broking have target price of Rs 1,380, HSBC's have a target price of Rs 1,586 and those most bullish as Citi have target price of Rs 1,945.

    https://www.business-standard.com/article/companies/aurobindo-pharma-regaining-traction-115031700968_1.html
     
  9. tolentino.gomes

    tolentino.gomes New Member

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    Auro rocking as per my call. HOLD it please it will surely cross 1300 Mark. This is my top research stock
     
  10. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    CMP: INR1,136 TP: INR1,645 (+45%) Buy

    Growth levers firmly in place; initiate with Buy

    Focus on niches in US to drive improving profitability and return ratios

    We initiate coverage on Aurobindo Pharma (ARBP) with a Buy rating and target
    price of INR1,645 (45% upside). We expect ARBP’s valuation gap with peers
    (~25% now) to narrow on strong earnings outlook (26.4% CAGR over FY15-17E)
    and improving capital efficiency (RoE/RoCE to expand). This would be achieved
    through (a) scale-up of differentiated US pipeline (injectables, penems, and
    controlled substances), (b) turnaround of EU acquisition (Actavis), and (c)
    sustained deleveraging efforts (D/E at 0.3x from 0.7x now).

    The research report by Motilal Oswal is attached
     

    Attached Files:

  11. tolentino.gomes

    tolentino.gomes New Member

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    As I said it will cross 1300 in April Month and it is heading towards that level. Short Term Target for Aurobindo is 1450 before results.

    Please HOLD and accumulate in DIPS
     
  12. tolentino.gomes

    tolentino.gomes New Member

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    SUN-PHARMA-AUROBINDO-PHARMA

    https://www.equitymaster.com/research-it/compare/compare_comp.asp?symbol=SUNP-AUBD&value=SUN-PHARMA-AUROBINDO-PHARMA
     
  13. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    pharma stocks were very strong today. Granules was up 10%. Others like Indoco etc also posted robust gains.
     
  14. Vidhi Khanna

    Vidhi Khanna Active Member Staff Member

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    Aurobindo Pharma gets USFDA approval for Sildenafil injection; Maintain BUY with PT of Rs1,412 | Aurobindo Pharma (ARBP IN) has received final approvals from the USFDA to manufacture and market Sildenafil Injection, 10mg/12.5mL (0.8mg/mL). Sildenafil Injection 10mg/12.5mL (0.8mg/mL) is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD), Revatio, of Pfizer. Sildenafil Injection is indicated for the treatment of adult patients (e” 18 years) with pulmonary arterial hypertension who are temporarily unable to take oral therapy, but are otherwise clinically and haemodynamically stable.

    (IndiaNivesh Research Report - attached - login required)
     

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  15. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Congrats Sir. Great call. Stock is up 6% today. According to IndiaNivesh TP is Rs. 1412.
     
  16. abhay6605

    abhay6605 Member

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    CAN ANY BUDY EXPLAIN WHAT WILL BE EMPACT OF USFDA CLEARANCE????
    any negative report on auro pharma.....
     
  17. abhay6605

    abhay6605 Member

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    analysts as Ranjit Kapadia at Centrum Broking have target price of Rs 1,380,
    HSBC's have a target price of Rs 1,586
    and those most bullish as Citi have target price of Rs 1,945.
     
  18. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    How it is negative? It is very positive. See IndiaNivesh report:

    "Aurobindo Pharma gets USFDA approval for Sildenafil injection; Maintain BUY with PT of Rs1,412 | Aurobindo Pharma (ARBP IN) has received final approvals from the USFDA to manufacture and market Sildenafil Injection, 10mg/12.5mL (0.8mg/mL). Sildenafil Injection 10mg/12.5mL (0.8mg/mL) is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD), Revatio, of Pfizer. Sildenafil Injection is indicated for the treatment of adult patients (e” 18 years) with pulmonary arterial hypertension who are temporarily unable to take oral therapy, but are otherwise clinically and haemodynamically stable." IndiaNivesh has also hiked price target.
     
  19. tolentino.gomes

    tolentino.gomes New Member

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    It crossed my target. It will test again at 1400 within next week. Please hold and do not listen to anyone. More Good news will come next week only
     
  20. tolentino.gomes

    tolentino.gomes New Member

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    Aurobindo can break 1400 today. This is my Guarantee. Please hold do not sell it is heading towards 1500.
     
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