HDFC MF-Backed Bluechip Stock To Turn Ex-Dividend On Monday For 300%: Buy?

With a market valuation of Rs 59,033.31 Cr, Aurobindo Pharma Ltd is a blue-chip company in the healthcare industry. Apart from dominating the Semi-Synthetic Penicillin market, it is also present in key therapeutic areas including anti-biotics, gastroenterology, anti-retrovirals, neurosciences, and cardiology. The headquarters of Aurobindo Pharma Limited, an Indian global pharmaceutical manufacturing firm, are located in Hyderabad, India's HITEC City. The firm manufactures both active and generic pharmaceuticals.

Aurobindo Pharma Dividend

The first interim dividend of 300%, or Rs. 3.00 per equity share of Re. 1/-each, on the equity share capital of the firm, has been approved by the board of directors. The date of record for the interim dividend payment for the 2023-2024 fiscal year has already been set by the company as November 20, 2023. The interim dividend in question will be paid by December 4, 2023.

As per the data available on BSE, the shares of Aurobindo Pharma shall trade ex-dividend on the same day or Monday/tomorrow due to the T+1 settlement mechanism of the company.

Aurobindo Pharma Q2 Results

In the second quarter of the current financial year (FY24), the company's consolidated net profit climbed by an impressive 83% year on year (YoY) to Rs 751.94 crore from Rs 409 crore in the same quarter the previous year. Aurobindo Pharma reported a solid double-digit rise in its revenue, rising from Rs 5,739 crore in Q2FY23 to Rs 7,219.4 crore in the September quarter, a 25.8% growth. In Q2FY24, the company recorded earnings before interest, taxes, depreciation, and amortisation (EBITDA) of Rs 1,403 crore, whereas EBITDA margin stood at 19.4%.

Aurobindo Pharma Share Price Target

Mandar Bhojane-Equity Research Analyst at Choice Broking said, "The current trading price of AUROPHARMA is Rs 982.4. The stock has recently experienced a bullish momentum, forming higher highs and higher lows accompanied by a significant increase in trading volume. If the price manages to close above the Rs 1000 level, it may have the potential to reach near-term targets of Rs 1050 and Rs 1080. On the contrary, immediate support levels are situated at Rs 930."

"The Relative Strength Index (RSI) currently stands at 71.6 and is trending upward, indicating increasing buying momentum. Furthermore, the Stochastic Relative Strength Index (Stoch RSI) has recently undergone a positive crossover. When considered together, these technical indicators suggest that AUROPHARMA has the potential to reach a target price of Rs 1080 in the near future," the analyst added.

"To prudently manage risk, it is advisable to set a stop-loss (SL) at Rs 930 and consider buying on dips around Rs 960 and Rs 945 levels. This precaution will help protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and current market conditions, AUROPHARMA appears to present an appealing buying opportunity for those aiming for a Rs 1080 price target, provided that appropriate risk management measures are in place," Mandar Bhojane stated.

Aurobindo Pharma Shareholding Pattern

During Q2FY24, the pharma company booked promoters shareholding of 51.84%, FIIs stake of 22.45%, DIIs stake of 18.29%, and public stake of 7.43%. As per the shareholding pattern of Aurobindo Pharma available on BSE for July to September 2023 quarter, HDFC S&P BSE 500 Exchange Traded Fund (ETF) held 2,14,09,365 shares or 3.65% stake, Mirae Asset Equity Savings Fund held 96,40,874 shares or 1.65% stake and Quant Tax Plan held 1,05,59,000 shares of the company or 1.80% stake in Aurobindo Pharma.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.