Shares of Aurobindo Pharma in early deal on November 12, 2020 jumped close to 6 percent to day's high of Rs. 859 per share on the NSE after the company's consolidated profit logged a 26% jump for the September ended quarter on a year-on-year basis.
In line with analysts' hopes, the company's consolidated profit surged to Rs. 805.6 crore during the period under review against Rs. 639.5 crore in the same quarter during the year-ago period. The company's revenue from operations also recorded a 15.8 percent jump y-o-y to Rs. 6483 crore due to growth in the company's US formulation business on a y-o-y basis by 12.5 percent.
EBITDA at the pharrma major also expanded 22.7% to Rs 1,432.8 crore and margin increased 130 bps YoY to 22.1 percent in Q2FY21.
"We continue to perform well across all our key geographies and segments to report a consistent set of earnings. We are happy to state that we have completed phase I clinical trials for our first biosimilar and started trials for three more products," the company's managing director N Govindarajan said.
Brokerage firm previously has given a 'Buy' call on the stock with a target price of Rs. 985. The company has reduced the FY22E EPS estimate by 2.5% to INR62.2 to factor in the Natrol divestment and revised the price target to INR 985 (from INR1,015 earlier), based on 16x 12M forward earnings.
At around 10:29 am, the stock of Aurobindo Pharma was up 5.40% at Rs. 854.85 per share.