Aurobindo Pharma: Multiple growth triggers to improve Street sentiment

Rebound in injectable sales, multiple product launches, strong European outlook and reduction in net debt are key earning triggers

Shares of Aurobindo Pharma, which had corrected by more than 20 per cent after hitting a fresh 52-week high in August, have rebounded over 12 per cent in the last 10 days. The company, which has seen a strong growth trajectory, however, posted a sequential decline in revenue and net profit in the June quarter (Q1) principally because of Covid-19 disruption, thereby affecting Street sentiment. During Q1, injectables and OTC (over the counter) sales in the US had remained soft, affected by lower hospital procedures amid the pandemic, while those in Europe and the rest of the world (after channel