Home >Markets >Stock Markets >Aurobindo Pharma shares hit new high, brokerages see more upside

Shares of Aurobindo Pharma today rose about 2.5% to an all-time high of 996 today, outperforming the flattish trend in other pharma stocks. The Nifty pharma index was flat today. Domestic brokerage Anand Rathi sees further upside in the stock, with a target price of 1,160.

"The technical evidences indicates a strong upside in the coming months. Traders can accumulate the stock between 970 – 950 with a stop loss of 860 (daily closing basis) for an upside target of 1160," the brokerage said.

Aurobindo Pharma shares have more than doubled in the past one year, with prices rising 110%.

Last month, Aurobindo Pharma and US-based Covaxx had entered into a license agreement to develop, commercialise and manufacture a vaccine to fight Covid-19 for India and the United Nations Children's Fund (UNICEF) agency.

Covaxx is currently conducting a phase one clinical trial for the vaccine candidate UB-61.

Aurobindo has the capacity of manufacturing 220 million doses in multi-dose presentation and is building additional facilities to have a total capacity of nearly 480 million doses by June.

Another brokerage Motilal Oswal remains positive on the pharma company. "We remain positive on the company on: a) improved outlook for the Injectable business, b) WIP for its complex product pipeline, c) significantly reduced financial leverage, d) completion of remediation measures at sites under regulatory issues, e) potential upside from vaccines," the brokerage said.

Motilal Oswal has an upside target of 1,100 on Aurobindo Pharma.

"With the inking of this agreement, the development skills of COVAXX would complement ARBP’s development, manufacturing as well as commercialization infrastructure. Since UB-612 requires normal refrigeration (no freezing required) for distribution, it would enable faster availability of the vaccine worldwide during the COVID-19 pandemic, creating a win-win situation for all stakeholders," Motilal Oswal had said in a note.

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