Aurobindo Pharma- Soft quarter, Attractive valuations - Maintain Buy ::Emkay

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Aurobindo Pharma

Soft quarter, Attractive valuations - Maintain Buy

BUY

CMP: Rs158                                        Target Price: Rs238

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n     Q1FY12 results were below expectations. Net sales up 20% to Rs10.6bn, EBITDA down 5% to Rs1.6bn and APAT (adj. for FCCB redemption premium & forex gain) up 15% to Rs1.1bn

n     Revenue growth was driven by 27% growth in US, 8% growth in Europe and 39% growth in ARV formulations

n     Base EBITDA margins declined 397bps YoY and 293bps QoQ led by overheads at Unit VI and higher contribution of ARVs

n     Maintain Buy rating on the stock with a revised target price of Rs238 (12xFY13E Core EPS of Rs19.8)