INVESTMENT IDEA: AUROBINDO PHARMA LIMITED
APL is the market leader in semi-synthetic penicillin drugs. It has a presence in key therapeutic segments like SSPs, cephalosporins, antivirals, CNS, cardio-vascular, gastroenterology, etc. Aurobindo Pharma has evolved into a knowledge driven company, with a focused R&D department and has a multi-product portfolio with multi-country manufacturing facilities and is becoming a marketing conglomerate across the world. APL has crafted a name for itself in the manufacture of bulk actives, its area of core competence.
APL is on a major growth path with lots of consolidations happening to emerge a global player in the near term. The company has built a strong global presence in six major areas like antibiotics, ARVs, CVS/statins/diabetology; CNS, gastro, anti-fungal/allergy/ respiratory.
APL's FY08E EPS comes to Rs.46.28 on a forward earning of Rs. 246.92 crore (annualized). The stock is currently trading at Rs. 604, thereby discounting at a P/E of 13.05x. We recommend to 'BUY' the stock with a long-term perspective with a target price of Rs. 785 for a 12 months period. The BUY recommendation is based on the premise that APL will bag the cumulative approvals leading to the required price movement.
Posts
0 comments:
Post a Comment