)
Aurobindo Pharma has surged 21% in the past one week, making it the fifth-most valuable Indian pharma company behind Sun Pharmaceutical Industries, Lupin, Dr Reddy’s Laboratories and Cipla.
The rally has seen Aurobindo surpass Ranbaxy Laboratories, Cadila Healthcare, Divi’s Laboratories, GlaxoSmithKline Pharmaceuticals, Glenmark Pharmaceuticals, Ipca Laboratories, Torrent Pharma, Biocon and Sanofi India in market capitalisation (m-cap) ranking.
The stock, which has gained over five-fold in the past one year, has seen Aurobindo occupy the 65th position in overall m-cap ranking, gaining 82 positions during the year. The company stood at 147 ranked with m-cap of Rs 5,882 crore as on September 30, 2013.
Strong show
Shares of pharmaceutical company have seen a sharp turnaround since it hit a multi-year low of Rs 82.35 on November 2011, after it reported a consolidated net loss of Rs 203 crore in first half of FY11-12. However, the company has reported an impressive performance since the past few quarters due to a strong growth in the US market.
In addition to being the market leader in Semi-Synthetic Penicillins, it has a presence in key therapeutic segments such as neurosciences, cardiovascular, anti-retrovirals, anti-diabetics, gastroenterology and cephalosporins, among others.
Foreign institutional investors (FIIs) holding in the company has also hit seven-year high. FIIs held 27.59% stake in June 2014 quarter, as against 12.45% at the end of September 2012 quarter. Their highest holding in the company was 31.29% in June 2006 quarter, data shows. The company yet to announced September 2014 shareholding pattern.
Going ahead, analyst at Angel Broking expect Aurobindo’s net sales to log a 29.2% CAGR to Rs 13,409 crore over FY2014–16E on the back of supply agreements in the US and antiretroviral (ARV) formulation contracts, which will be supplemented through the recent acquisition of the Western European formulation business of Activas.
The management indicated that the net debt was $537 million (Rs 3,220 crore) at the end of FY14 and the majority was in foreign currency. The company has repaid $67 million (Rs 402 crore) in debt during FY14 and has plans to repay $100-125 million (Rs 600-750 crore) during FY15, points out a Prabhudas Lilladher report.
| As on October 1, 2014 | Returns in % | |||
| Company | M-cap Rs cr | Price in Rs | 1 week | 1 year |
| Sun Pharma | 178,216 | 860.45 | 10.26 | 45.21 |
| Lupin | 62,282 | 1387.35 | 1.60 | 62.32 |
| Dr Reddy's Labs | 54,527 | 3200.60 | -0.99 | 34.27 |
| Cipla | 50,041 | 623.25 | 3.81 | 44.27 |
| Aurobindo | 28,149 | 965.65 | 20.60 | 378.04 |
| Ranbaxy Labs | 27,065 | 638.30 | 10.06 | 93.01 |
| Cadila Healthcare | 26,782 | 1308.10 | 2.64 | 92.37 |
| Divi's Lab. | 23,736 | 1788.00 | 3.38 | 84.80 |
| Glaxosmit Pharma | 23,719 | 2800.35 | 5.04 | 14.92 |
| Glenmark Pharma | 19,076 | 703.20 | 0.47 | 32.44 |
| Source: Capitalineplus | ||||
| Data compiled by BS Research | ||||
