Buy Aurobindo Pharma Long term story intact – Target Rs 265 :: Emkay

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Aurobindo Pharma

Long term story intact – Maintain Buy

BUY

CMP: Rs 196                                        Target Price: Rs 265

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n     USFDA Import Alert ban on Unit VI (Cephs - Oral and Injectable) to hurt US$80mn in revenues over the medium term 

n     Short term US growth impacted, however, long-term growth drivers remain intact

n     60 ANDA filings from Unit VII are the key growth drivers for US for the next 2 years

n     On account of USFDA ban on Unit VI and higher tax rates, revise earning estimates downwards by 10% for FY12E to Rs20.4 (earlier 22.6). Maintain Buy with a target of Rs265