Stock Market Today: Aurobindo Pharma share price gained more than 6% in morning trades on Monday as share price scaled 52-week high.
Aurobindo Pharma share price opened at ₹1,360.00, slightly higher than the previous close of ₹1,326.85.
However Aurobindo Pharma share price thereafter scaled 52-week high of ₹1,409.90 on the NSE on Monday.
Share Buyback drives the gains Aurobindo Pharma share price gains are attributed to its announcements around its Board meeting to be held on Thursday, July 18, 2024 to consider share buy back.
Improving earnings prospectsThe Aurobindo Pharma share price have gained almost 90% in an year with improving earnings outlook.
Stock Market Today: Aurobindo Pharma share price gained more than 6% in morning trades on Monday as share price scaled 52-week high.
Aurobindo Pharma share price opened at ₹1,360.00, slightly higher than the previous close of ₹1,326.85. However Aurobindo Pharma share price thereafter scaled 52-week high of ₹1,409.90 on the NSE on Monday.
Share Buyback drives the gains Aurobindo Pharma share price gains are attributed to its announcements around its Board meeting to be held on Thursday, July 18, 2024 to consider share buy back.
In its release in the Exchanges Aurobindo Pharma said that a meeting of the Board of Aurobindo Pharma Limited will be held on Thursday, July 18, 2024 to consider, inter alia, a proposal for buyback of the fully paid-up equity shares of the Company and the matters necessary and incidental thereto, in accordance with the applicable provisions under the Companies Act, 2013.
Improving earnings prospects
The Aurobindo Pharma share price have gained almost 90% in an year with improving earnings outlook. The concerns pertaining to US growth led by High pricing pressure are now behind. Europe that is second largest contributor to Aurobindo Pharma after the US, also is seeing improved improved prospects.
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Axis Securities expects Aurobindo Pharma Q1FY25 results performance to surpass industry growth, driven by a superior product portfolio and a strong product pipeline.
US revenue during Q4FY24 at $432 million, contributing more than 47% to overall revenues had increased by 20.4% YoY during Q4FY24. Analysts at Axis Securities during Q1FY25 expect US sales $422 Million excluding generics of blockbuster drug Revlimid. Revlimid generic sales could be $30 million as per them. Thus over all US sales momentum is likely to continue with stable Gross margins due to stable Active Pharma Ingredients prices in the last quarter.
Even analysts at Motilal Oswal Financial Services expect US sales to grow 12% YoY to $451 million, led by key launches, offset by temporary shutdown of Eugia’s unit-3 (manufacturing facility).
The European sales during Q4FY24 at Euro 203 Million ( ₹1832 million) , accounting for 24.2% of consolidated revenue had marked a growth of 8% year-on-year.
The European sales during Q1FY25 as per MOFSL estimates is pegged to grow 7.5% year on year to ₹1970 Crore on expansion into newer markets and differentiated product offering.
