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BRICS Securities recommends Aurobindo Pharma

BRICS Securities recommends Aurobindo Pharma
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First Published: Mon, Jul 13 2009. 09 17 AM IST

Updated: Mon, Jul 13 2009. 09 17 AM IST
Improving product mix (focus on formulation), rising US sales (large product pipeline), and the supply arrangement with Pfizer ($100mn+ revenue FY11 onwards) will lead to superlative growth in revenue (22%) and profitability (23%) in FY11E.
Debt concern is set to become a non-issue with Rs10bn free cash flow by FY12. Hence valuation discount to peers (trades at 5.4x FY11E v/s 14x peer avg) is unwarranted.
We recommend a BUY in the stock.
Click here to read a detailed report
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First Published: Mon, Jul 13 2009. 09 17 AM IST
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