Aurobindo Pharma Q4FY16 Result Update Research Report By Motilal Oswal

Tagged: Aurobindo Pharma, Motilal Oswal

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June 1, 2016 at 5:15 pm #3193

Vidhi Khanna
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Strong earnings growth trajectory and improving cash flow to drive valuations:

At its CMP, ARBP trades at 18.3x FY17E and 14.5x FY18E, which is at a ~20% discount to its peers. Going forward, the valuation gap is expected to narrow down on account of the company’s increasing profitability, strong earnings growth trajectory (28% CAGR) and improving free cash flow. ARBP remains one of our top picks in the sector with a target price of INR1,100, based on 20x FY18E PER.

ARBP-20160531-MOSL-RU-PG012
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