Since the start of this financial year (FY24), the stock of Aurobindo Pharma has been one of the top pharma gainers, enhancing investor wealth by over 68 per cent, with a third of those gains coming in the last three months.
The stock is riding on multiple triggers given its investments in the production-linked incentive or PLI scheme, biosimilars, injectables and vaccines, which should drive revenues and profits over the medium term.
Better than expected performance after the June quarter results led to a revision of earnings estimates for FY24 and FY25.
According to analysts, the sale of Glenmark Life could impact the profitability of Glenmark Pharma in FY25 but lower interest payments could offset the impact. ICICI Securities said the company will use the proceeds to clear its outstanding debt of 4,340 crore as of FY23 but the transaction is likely to result in an earnings cut of 5% for FY25. The brokerage has a sell rating on the stock with a price target of 660.
Apollo’s mainstay hospitals business saw 13% growth. The other segments, Apollo Health and Lifestyle Ltd (AHLL) and Apollo HealthCo continued to show improvement.
Analysts, however, feel that together with upcoming Aspart (insulin) and vaccines, Hulio will help drive BBL's revenues from the current $1 billion to around $1.65 billion by FY25