Share price of Aurobindo Pharma has delivered stellar returns to investors since March 23 this year. Aurobindo Pharma share price closed at Rs 294.35 on March 23, 2020 and rose to intra day high of Rs 934 today, translating into gains of 217% during the period. Share price of the pharma firm's peers such as Sun Pharma, Divi's Labs, Dr Reddy's Laboratories and Cipla have gained 70%, 71.74% , 66% and 107%, respectively since March 23.
An investment of Rs 1 lakh in the Aurobindo Pharma stock on March 23 would have grown to Rs 3.17 lakh today. In comparison, Sensex has gained 47.67% during the period.
On March 23, Sensex plummetted 3,934.72 points or 13.15 per cent to 25,981.24 after several Indian states announced lockdown following a spurt in the number of coronavirus cases. Similarly, Nifty nosedived 1,135.20 points or 12.98 per cent to settle at 7,610.25.
In today's, Aurobindo Pharma shares fell 5.24% to Rs 885.70 on BSE despite the pharma firm posting 23% rise in Q1 net profit to Rs 780.68 crore on account of robust sales in the US market. Later, the stock closed 5.64% lower at Rs 881 on BSE.
The firm had posted a net profit of Rs 635.68 crore in the corresponding period of the previous fiscal. Aurobindo pharma share is trading higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.
The large cap stock has gained 96% since the beginning of this year and risen 48% during last one year. During the same period, Sensex has lost 71.2% and risen 3.67%, respectively. The stock has gained 10.61% in one month but lost 1.61% in a week. Total 4.89 lakh shares changed hands amounting to turnover of Rs 44.33 crore on BSE today.
Motilal Oswal has given a buy call on the Aurobindo Pharma share with a target price of Rs 934 after Q1 earnings show.
EBITDA rose 9.7% YoY to Rs 1,260 crore (v/s estimate of Rs 1180 crore). R&D expense fell 20 bps YoY (as a percentage of sales) to Rs 250 crore (4.3% of revenues).
Net debt declined by $168 million QoQ to $191 million.
HDFC Securities too assigned a buy call with a target price of Rs 835 for Aurobindo Pharma and said the firm would be the biggest beneficiary of the improved outlook in the US and EU.
"In US, while injectables revenues will be impacted in Q1FY21, we expect steady momentum in the oral solids business aided by currency tailwinds," the brokerage said. The company intends to be net debt free by FY22. The target price of Rs 835 is based on 14 times FY22 EPS.