Aurobindo Pharma Limited is a prominent Indian multinational pharmaceutical manufacturing company with a global footprint, serving markets in more than 125 countries. The company’s core focus lies in the production and promotion of active pharmaceutical ingredients, generic pharmaceuticals, and associated services.
In this article, we will delve into the comprehensive details of Aurobindo Pharma, exploring its history, products, global reach, and the impact it has had on the pharmaceutical industry.
About Aurobindo Pharma
Aurobindo Pharma Limited, headquartered in HITEC City, Hyderabad, India, commands a prominent position in the pharmaceutical industry. It is India’s second-largest pharmaceutical company and the largest generics company in the United States, underscoring its global significance. Offering a wide-ranging product portfolio spanning antibiotics, anti-retrovirals, cardiovascular products, central nervous system products, gastroenterologicals, and anti-allergics, Aurobindo Pharma plays a pivotal role in six major therapeutic areas.
The company boasts an impressive market capitalization of ₹54,668 Crores and a current stock price of ₹933, attesting to its strong market presence. With operations reaching over 125 countries, Aurobindo Pharma derives more than 70% of its revenues from international markets, solidifying its standing as a pharmaceutical leader. Furthermore, its acquisition of Actavis’ generic operations in Western Europe in 2014 for $41 million further enhances its global footprint.
Aurobindo Pharma Q2 FY 2023-24: Impressive Results with Record Profits and Revenue Surge
- Aurobindo Pharma’s consolidated net profit for Q2 2024 showed an impressive 85% YoY increase, reaching Rs 757 crore.
- Q2 revenue amounted to Rs 7,219.4 crore, marking a substantial 25.7% growth from the same period in the previous year.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) experienced a significant rise to Rs 1373.5 crore, resulting in an EBITDA margin of 19%, up from 13.6% in the corresponding quarter last year.
- US formulations (excluding Puerto Rico) revenue saw a notable 35.7% YoY increase, reaching Rs 3,385 crore.
- Europe formulation revenue experienced a 16.7% YoY growth, reaching Rs 1,769 crore.
- Growth markets revenue increased by 24.7% YoY to Rs 564 crore.
- Research & Development (R&D) spending amounted to Rs 300 crore, constituting 4.2% of the quarter’s revenues.
- The company filed 10 Abbreviated New Drug Applications (ANDAs) with USFDA and received final approval for 15 ANDAs, including 3 injectable products.
- Anti retroviral business revenue increased by 52.1% YoY to Rs 250 crore, contributing 3.5% to consolidated revenue.
- Active Pharmaceutical Ingredient business revenue rose by 20.3% to Rs 1,166 crore, making up 16.2% of consolidated revenue.
- The Board approved the first interim dividend of 300%, i.e., Rs.3.00 per equity share of Rs 1/- each on the equity share capital of the Company.
Below are the trading platforms that you can use to purchase Aurobindo Pharma shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| November 2023 | ₹1,006.56 | ₹875.27 |
| December 2023 | ₹1,039.78 | ₹904.15 |
In the context of Aurobindo Pharma’s share price targets for 2023, market analysts and investors have set their sights on potentially favorable trends.
As of November 2023, the share price is estimated to range between ₹875.27 as the minimum and ₹1,006.56 as the maximum, offering a spectrum of investment opportunities.
Looking ahead to December 2023, further optimism is prevalent, with projections indicating a price range between ₹904.15 and ₹1,039.78. These forecasts suggest a potential upward trajectory for Aurobindo Pharma’s shares, providing investors with various possibilities to navigate the dynamic pharmaceutical market.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹1,061.00 | ₹922.61 |
| February 2024 | ₹1,082.65 | ₹941.43 |
| March 2024 | ₹1,104.74 | ₹960.65 |
| April 2024 | ₹1,072.57 | ₹932.67 |
| May 2024 | ₹1,056.72 | ₹918.88 |
| June 2024 | ₹1,094.76 | ₹951.96 |
| July 2024 | ₹1,083.81 | ₹942.44 |
| August 2024 | ₹1,127.16 | ₹980.14 |
| September 2024 | ₹1,172.25 | ₹1,019.35 |
| October 2024 | ₹1,149.26 | ₹999.36 |
| November 2024 | ₹1,183.74 | ₹1,029.34 |
| December 2024 | ₹1,213.34 | ₹1,055.07 |
Looking ahead to 2024, Aurobindo Pharma’s share price targets appear to offer an array of possibilities for investors. In January 2024, the estimated share price range spans from ₹922.61 (minimum) to ₹1,061.00 (maximum), indicating a potential upward trend in the early part of the year. As the months progress, these positive trends seem to continue, with share price projections for February, March, and beyond reflecting the company’s potential growth.
By December 2024, the share price is estimated to reach a maximum of ₹1,213.34 and a minimum of ₹1,055.07, underscoring the optimistic outlook for Aurobindo Pharma. However, it’s essential to remember that these projections are subject to market dynamics and various external factors influencing stock prices.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹1,237.60 | ₹952.00 |
| February 2025 | ₹1,269.34 | ₹976.41 |
| March 2025 | ₹1,318.84 | ₹1,014.49 |
| April 2025 | ₹1,292.98 | ₹994.60 |
| May 2025 | ₹1,255.32 | ₹965.63 |
| June 2025 | ₹1,311.81 | ₹1,009.08 |
| July 2025 | ₹1,286.09 | ₹989.30 |
| August 2025 | ₹1,325.86 | ₹1,019.90 |
| September 2025 | ₹1,372.27 | ₹1,055.59 |
| October 2025 | ₹1,407.95 | ₹1,083.04 |
| November 2025 | ₹1,443.15 | ₹1,110.11 |
| December 2025 | ₹1,479.23 | ₹1,137.87 |
As we peer into the future, Aurobindo Pharma’s share price targets for 2025 appear to be marked by an encouraging trajectory, offering investors a compelling outlook. In January 2025, the share price is anticipated to fluctuate between ₹952.00 (minimum) and ₹1,237.60 (maximum), suggesting early-year growth potential. The positive trend continues into February, March, and April, with projected prices ranging between ₹976.41 to ₹1,318.84, reflecting steady upward momentum. The pharmaceutical company’s robust performance seems to persist throughout the year, with estimated share prices in December 2025 reaching a maximum of ₹1,479.23 and a minimum of ₹1,137.87.
These projections not only underscore Aurobindo Pharma’s promising prospects but also hint at the potential for substantial growth in the pharmaceutical sector. However, it’s important to remember that stock prices are influenced by a multitude of factors, and these projections are subject to market dynamics and external influences, making it essential for investors to exercise prudent decision-making and due diligence in their investment strategies.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹1,553.19 | ₹1,087.23 |
| 2027 | ₹1,708.51 | ₹1,195.95 |
| 2028 | ₹2,391.91 | ₹1,195.95 |
| 2029 | ₹2,070.92 | ₹1,035.46 |
| 2030 | ₹2,692.19 | ₹1,884.53 |
Aurobindo Pharma’s projected share price targets for the years spanning 2026 to 2030 present an optimistic outlook for potential growth and performance within the pharmaceutical industry. Commencing in 2026, the expected share price range extends from a minimum of ₹1,087.23 to a maximum of ₹1,553.19, indicating positive prospects for investors. Advancing into 2027, share prices are anticipated to continue their ascent, fluctuating between ₹1,195.95 (minimum) and ₹1,708.51 (maximum), underscoring a sustained upward trend.
Notably, the most significant surge is foreseen in 2028, with projected share prices ranging from ₹1,195.95 (minimum) to a substantial ₹2,391.91 (maximum), emphasizing the potential for substantial growth. While some fluctuations may occur in the subsequent years, Aurobindo Pharma’s long-term outlook remains promising. By 2030, share prices are estimated to reach a maximum of ₹2,692.19 and a minimum of ₹1,884.53, signifying the company’s growth potential over the next half-decade.
These predictions underline Aurobindo Pharma’s pivotal role in the pharmaceutical sector and suggest that it may present lucrative investment prospects for those with a long-term perspective.
Aurobindo Pharma Financial Condition: Last 5 years
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Sales | 19,564 | 23,099 | 24,775 | 23,455 | 24,855 |
| Expenses | 15,612 | 18,249 | 19,497 | 19,060 | 21,148 |
| Oper. Profit | 3,952 | 4,849 | 5,278 | 4,396 | 3,707 |
| OPM % | 20% | 21% | 21% | 19% | 15% |
| Other Income | 70 | 166 | 3,195 | 152 | 291 |
| Interest | 263 | 305 | 74 | 49 | 140 |
| Depreciation | 668 | 967 | 1,055 | 1,127 | 1,245 |
| PBT | 3,091 | 3,743 | 7,344 | 3,373 | 2,612 |
| Tax % | 24% | 24% | 22% | 26% | 26% |
| Net Profit | 2,364 | 2,844 | 5,334 | 2,647 | 1,928 |
| EPS (in Rs) | 40.36 | 48.56 | 91.05 | 45.20 | 32.90 |
Aurobindo Pharma’s financial performance over the last five years reveals both strengths and challenges. During this period, the company’s sales have exhibited a consistent upward trend, with revenues climbing from ₹19,564 crores in 2019 to ₹24,855 crores in 2023. However, it’s important to note that the growth rate has shown a recent deceleration, with a compounded sales growth of 6% in the trailing twelve months.
Profitability, on the other hand, has faced fluctuations. Aurobindo Pharma’s operating profit margin has experienced some contraction, dipping from 21% in 2020 to 15% in 2023. Additionally, the compounded profit growth over the past five years has been negative, with a decline of 5%. This trend reflects the complex and competitive nature of the pharmaceutical industry and the need for the company to address operational challenges.
Overall, while Aurobindo Pharma has demonstrated consistent sales growth over the last five years, it faces profitability challenges that need to be managed effectively to ensure sustainable growth and profitability in the future.
Motilal Oswal has issued a Neutral rating for Aurobindo Pharma, setting a target price of Rs 910 in their research report dated August 14, 2023.
FAQs
What is Aurobindo Pharma’s current market capitalization?
Aurobindo Pharma’s current market capitalization is ₹54,668 Crores.
In November 2023, the share price target ranges from ₹875.27 (minimum) to ₹1,006.56 (maximum).
In January 2025, the share price target varies between ₹952.00 (minimum) and ₹1,237.60 (maximum).
Aurobindo Pharma’s share price target for 2030 ranges from ₹1,884.53 (minimum) to ₹2,692.19 (maximum).
What is the current Price-to-Earnings (P/E) ratio for Aurobindo Pharma?
Aurobindo Pharma’s current P/E ratio stands at 27.1.
Does Aurobindo Pharma pay dividends, and what is the dividend payout percentage?
Yes, Aurobindo Pharma pays dividends with a dividend payout percentage of 23%.
What are Aurobindo Pharma’s key product segments?
Aurobindo Pharma’s key product segments include antibiotics, anti-retrovirals, cardiovascular products, central nervous system products, gastroenterologicals, and anti-allergics.
What major acquisition did Aurobindo Pharma make in 2014 to enhance its global presence?
In 2014, Aurobindo Pharma acquired Actavis’ generic operations in Western Europe for $41 million.
What is the compounded sales growth for Aurobindo Pharma over the last 10 years?
The compounded sales growth for Aurobindo Pharma over the last 10 years is 16%.
What is the compounded profit growth for Aurobindo Pharma over the last 5 years?
The compounded profit growth for Aurobindo Pharma over the last 5 years is -5%.
What was Aurobindo Pharma’s net profit in 2023?
Aurobindo Pharma’s net profit in 2023 was ₹1,928 Crores.
How has Aurobindo Pharma’s operating profit margin evolved from 2019 to 2023?
Aurobindo Pharma’s operating profit margin declined from 20% in 2019 to 15% in 2023.
How did Aurobindo Pharma’s sales perform over the last five years?
Aurobindo Pharma’s sales increased from ₹19,564 Crores in 2019 to ₹24,855 Crores in 2023.
What is the historical dividend payout percentage for Aurobindo Pharma?
Aurobindo Pharma’s historical dividend payout percentage ranges from 6% to 23%.
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Conclusion: Aurobindo Pharma’s Position in the Pharmaceutical Landscape
In conclusion, Aurobindo Pharma Limited stands as a prominent player in the pharmaceutical industry, making significant strides both in India and on the global stage. With a diverse product portfolio encompassing antibiotics, anti-retrovirals, cardiovascular products, central nervous system products, gastroenterologicals, and anti-allergics, the company has established itself as a leader in multiple therapeutic areas. Its impressive market capitalization of ₹54,668 Crores and a current stock price of ₹933 reflect its strong market presence, and its extensive reach extends to over 125 countries, with more than 70% of its revenues generated from international operations.
Despite these strengths, there are challenges that Aurobindo Pharma needs to address. The company has experienced a sluggish sales growth rate of 8.59% over the past five years, indicating the need for strategies to boost revenue. Additionally, the relatively low return on equity (ROE) of 11.8% over the last three years suggests room for improvement in optimizing shareholder value.
Overall, Aurobindo Pharma’s global footprint and product diversity position it as a significant player in the pharmaceutical sector. However, it must navigate the competitive landscape and focus on enhancing sales growth and ROE to sustain and improve its financial performance in the years ahead.
What did we learn?
- 1 About Aurobindo Pharma
- 2 Aurobindo Pharma Q2 FY 2023-24: Impressive Results with Record Profits and Revenue Surge
- 3 How to Purchase Aurobindo Pharma Shares?
- 4 Aurobindo Pharma Share Price Target: 2023 To 2030
- 5 Aurobindo Pharma Financial Condition: Last 5 years
- 6 Motilal Oswal On Aurobindo Pharma Share Price Target
- 7 FAQs
- 7.1 What is Aurobindo Pharma’s current market capitalization?
- 7.2 What is the current share price target for Aurobindo Pharma in 2023?
- 7.3 What is the share price target for Aurobindo Pharma in 2025?
- 7.4 What are Aurobindo Pharma’s share price targets for 2030?
- 7.5 What is the current Price-to-Earnings (P/E) ratio for Aurobindo Pharma?
- 7.6 Does Aurobindo Pharma pay dividends, and what is the dividend payout percentage?
- 7.7 What are Aurobindo Pharma’s key product segments?
- 7.8 What major acquisition did Aurobindo Pharma make in 2014 to enhance its global presence?
- 7.9 What is the compounded sales growth for Aurobindo Pharma over the last 10 years?
- 7.10 What is the compounded profit growth for Aurobindo Pharma over the last 5 years?
- 7.11 What was Aurobindo Pharma’s net profit in 2023?
- 7.12 How has Aurobindo Pharma’s operating profit margin evolved from 2019 to 2023?
- 7.13 How did Aurobindo Pharma’s sales perform over the last five years?
- 7.14 What is the historical dividend payout percentage for Aurobindo Pharma?
- 8 Conclusion: Aurobindo Pharma’s Position in the Pharmaceutical Landscape
