Sharekhan has given Hold recommendation for Aurobindo Pharma with a target price of Rs. 640 in its research report issued on Aug 12, 2022

Sharekhan’s research report on Aurobindo Pharma

Aurobindo Pharma Limited (Aurobindo) reported a weak performance for Q1FY2023, marred by soaring cost pressures, which resulted in steep gross margin contraction. Q1FY2023 results missed estimates. Management sees performance to be under stress at least for the near term due to overall elevated cost pressures and sustained higher freight cost in the US business. US business staged high single-digit growth, driven by pick up in volume across segments, thus providing growth visibility ahead.

Outlook

We retain our Hold recommendation on the stock with a revised PT of Rs. 640.

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