Aurobindo Pharma hits record high

The stock moved higher to its record high of Rs 841, up 1.1%, extending its 5% gain in past six trading sessions on BSE.

Aurobindo Pharma has moved higher to its record high of Rs 841, up 1.1%, extending its 5% gain in past six trading sessions on the BSE in otherwise weak market.

In past two-weeks, the drug major had received final approval from the US Food and Drug Administration (USFDA) to manufacture and market Tramadol Hydrochloride extended-release tablets used for treating pain and Memantine Hydrochloride tablets used in treatment of Alzheimer's.

Aurobindo Pharma on Monday, October 26, announced that a meeting of the board of directors of the company will be held on November 06, 2015, to consider the un-audited financial results of the company for the quarter and half year ended September 30, 2015 (Q2FY16).

Analysts on an average, the company is expect to report 28% year on year (YoY) growth in net profit at Rs 478 crore on back of 22% YoY rise in revenues at Rs 3,484 crore.

“We expect Aurobindo Pharma’s Q2FY16E revenues to grow at 21% YoY to Rs 3,450 crore, led by US sales of Suprax, injectables, controlled substances and 10 new approvals. Sales of Cephalosporin will also be the key contributor for Q2FY16E revenue estimates. Aurobindo’s debt will be maintained at US$670 million in Q2FY16E due to Natrol buyout at US$107 million in Q3FY15,” the broking firm Prabhudas Lilladher said in a results preview.

Motilal Oswal Securities expect Aurobindo’s sales to grow 19% YoY to Rs 3,440 crore in Q2FY16, aided by improving traction in the US and higher ARV sales. We expect reported PAT at Rs 490 crore compared with Rs 372 crore in Q2FY15.

Meanwhile, post June 30, 2015 quarter (Q1YF15) results, the stock outperformed the market by gaining 13% from Rs 744 on August 12, compared to 1% decline in the Sensex.