Sunday, 24 July 2011

Potential Multibagger - Aurobindo Pharma Ltd

It is largest vertically integrated pharma company in the country and the company  is engaged in the manufacturing business of pharmaceutical formulations, formulation ingredients and organic intermediates. The products manufactured by the company covers wide range like antibiotics,anti-retrovirals,anti -diabetics, CVS,CNS, Gastro-enterologicals and Anti Allergicals.In order to produce the wide ranged products and its intermediates and supplying them to the consuming centres, the company has 14 manufacturing plants across the world conforming to GMO/ISO regulations and well equipped R&D facility.Aurobindo Pharma has identified international operations very well and exports its products to nearly 100 countries across the world.

Aurobindo Pharma is one of the top 5 manufacturers of semi-synthetic pencillin in the world.Recently the company has signed  a licensing and supply agreement with Pfizer to supply dosages and sterile  products.Pfizer has acquired rights from the company to sell 75 drug as pills and 12 injectables in US and European Market.

 The market capitalisation of the company is Rs.5084.43 crores having PE ratio 8.56. The current market price of the scrip is Rs.174.65 as  on 22.07.2011.

 It is one of the  companies which are edium and long term bets for investment..The financials for the last 4 years are as given below:
 

Figures in rs crores
FY 2011
FY2010
FY2009
FY2008
Income
4284.83
3511.76
2630.28
2421.13
Net Profit
593.80
525.76
128.54
290.78
Reserves & Surplus
2540.50
1886.50
1293.95
1193.72
Debt
2317.72
1944.78
2144.68
1755.65
Share capital
29.11
27.86
26.88
26.88


EPS of the company is Rs.20.40, Current ratio is 1.21, netprofit margin is 14.33%  and return on long term funds is 23.31% as on 31.03.2011.

 The growth of the company is slightly erratic, but with recent exclusive marketing arrangement with Pfizer, the company will post steady growth in coming  years.


In June 2011,HDFC top 200 fund, equity funds, prudence funds , Birla Mutual fund , SBI Magnum, Kotak mutual funds have invested substantial amounts in Aurobindo Pharma.  21.526.099 shares  of   the  company  have been purchased by mutual funds in June 2011.In addition to the above mutual have acquired shares earlier also showing confidence in the future growth of the company.

1 comment:

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