Lack of near-term triggers to cap upsides in Aurobindo Pharma

Upsides from capex and investments across segments are at least three years away

The Aurobindo Pharma stock was down 2.74 per cent after its March quarter results missed street expectations. Further, the stock does not have any near term triggers while its valuations are trending higher than its historical average. 

The Q4 disappointment was largely due to the weak show in the European operations which reported a revenue fall of 6 per cent while rest of the world business was down 19 per cent. Revenue from the US, its largest geography, was flat on a sequential basis and up 5 per cent after adjusting for the divestment of the Natrol business.

Though injectables