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Aurobindo Pharma soars on heavy volumes, stock surges 100% in 2012

A combined 4.85 million shares have already changed hands so far against an average 1.7 million shares that were traded daily in past two weeks

SI Reporter  |  Mumbai 

Aurobindo Pharma has soared over 8% to Rs 171 on back of heavy volumes on the Bombay Stock Exchange on hopes of healthy revenue growth from US market driven by abbreviated new drug application (ANDA) approvals received from USFDA.

The stock opened at Rs 159 and has seen around three-fold jump in trading volumes. A combined 4.85 million shares have already changed hands on the counter so far against an average 1.7 million shares that were traded daily in past two weeks.

The stock of pharmaceutical company continued at its upward march and is one of the out performers in 2012, has rallied 100% from Rs 85 at the beginning of current calendar year. The benchmark index Sensex has gained around 20% during the same period.

“Aurobindo has a total of 157 ANDA approvals (131 final approvals including 1 from Aurolife Pharma LLC and 26 tentative approvals) from the USFDA. Overall, the company expects around 7-8 players in the product. Given the size of the product, the product can contribute around US$20- 30mn for the full year,” said Sarabjit Kour Nangra, analyst at Angel Broking in recent report.

According to analyst at IndiaNivesh Research, “the company’s operational efficiencies are likely to improve going forward from Q3FY13 mainly on the back of sincere measures taken by management in the past, incremental revenue from US, increase in asset turnover linked with higher capacity utilization which would lead to improvement in ROCE.”


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First Published: Thu, November 01 2012. 14:04 IST