Near term upsides for Aurobindo Pharma stock capped on weak US outlook

The company has been making small acquisitions to bridge the growth gap

The Aurobindo Pharma stock was down 8 per cent in trade and the biggest loser among the BSE 100 companies after it posted weaker than expected June (Q1FY22) quarter results. The stock has been underperforming its peers over the past year given the flattish trend of revenues on the back of pricing pressures in the US market and the lack of immediate triggers. While the company has invested significantly in developing a differentiated product pipeline, the gains from new drugs will be back ended. Moreover, heavy investments in facilities could impact its cash flows in the near term. 

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