Stock pick of the week: Reasons why good days are here for Aurobindo Pharma
Higher growth expected due to rising Covid cases and ‘China plus one’ strategy of global pharma majors.
Synopsis
Aurobindo Pharma reported better than expected numbers in the first quarter. Reasonable valuation, expected rerating, increase in cash flows and moving towards becoming debt-free are some of the other factors that have made the company a favourite of analysts
Aurobindo Pharma is one of the few companies that was able to report better than expected numbers during the first quarter of 2020-21. It reported y-o-y revenue and net profit growths of 9% and 23% respectively for the quarter. Drug shortage in the US due to Covid-19 induced supply chain disturbances and the increase in demand owing to the large number of Covid cases, helped Aurobindo to report higher export growth. Its US formulation business
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