Share price of Aurobindo Pharma has delivered 175% returns till date compared to its 52 week low recorded on March 23 2020.
The pharma share was trading 2.01% lower at Rs 743 per share in Friday's afternoon session. The pharma stock has fallen after 3 days of consecutive gain. Earlier in the day's, shares of Aurobindo Pharma touched an intraday high of Rs 775.7, rising 2.18% as against the last closing value of Rs 759.15.
The stock erased early gains and fell in today's trade as the USFDA issued a 'Form 483' with 9 observations to its subsidiary, AuroLife Pharma's manufacturing facility in the US.
Aurobindo Pharma stock price is trading higher than its 5, 20, 50, 100 and 200-day moving averages. Market capitalisation of the firm stood at Rs 43,828.21 crore as of today's session.
Aurobindo Pharma stock price is up 63.6% since the beginning of the year, where Sensex has fallen 16.94% in the same period. The stock has risen 0.4% in one week and 18.38% in one month's period.
With the pharma major posting a strong January-March quarter, many brokerages have continued with a buy rating for the stock, even after the share price jumping 175% to today's high of Rs 775.70, from the 52-week low of Rs 281.15, recorded on 23 March 2020.
Edelweiss Securities has kept HOLD call and revised the target price to Rs 825 for the pharma stock. The brokerage in its report said that the company posted a strong Q4FY20, with key highlights on its continued debt reduction, which has been a cause for concern. As per the brokerage, Aurobindo's management has indicated a marked shift from inorganic growth to a more sustainable R&D-led expansion. "The FY20 outperformance also prompts a 10% increase in FY22E EPS," it said later.
HDFC Securities also maintained 'Buy' call on the stock, with a revised TP of Rs 835 and said,"While Q1FY21 is expected to be muted, the underlying growth prospects for the business remain strong. Steady progress on the differentiated pipeline will drive long term earnings sustainability in our view. We increase our earnings estimates by 4-6% to incorporate a slightly higher gross margin."
Kotak Institutional Equities also kept the stock on Add rating, with a fair price of Rs 690. Motilal Oswal has kept a Buy rating on the stock with a target price at Rs 880 per share.