Financial Daily from THE HINDU group of publications
Wednesday, Jul 09, 2003
Financial Daily from THE HINDU group of publications Wednesday, Jul 09, 2003 |
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Markets
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Stock Markets Aurobindo Pharma rises on export prospects Aparna Krishnan
MUMBAI, July 8 EXPORT opportunities and the completion of a restructuring exercise of manufacturing facilities has spurred investor interests once again in the stock of pharmaceutical major Aurobindo Pharma. The stock has risen by over 25 per cent in the last seven days and has gained over 34 per cent from Rs 330 levels, a month ago. Today, however, the counter witnessed some profit booking. The share price of Aurobindo Pharma ended lower on the BSE by 3.24 per cent at Rs 428.10 with 27,156 shares being traded. On the NSE, the share price was lower by 3.78 per cent to close at Rs 427.50 with volumes of 1.52 lakh shares. Analysts put the resurgence of interest in the stock to the company's restructuring efforts and its thrust on exports. "The three main reasons for the interest are manufacturing facilities in China, restructuring of operations including upgrading of facilities to meet regulatory markets and product pipeline which includes high value bulk drugs,'' said an analyst from a domestic brokerage firm. "Aurobindo has invested over Rs 325 crore on expansion of capacities for its key product lines. This expansion would place Aurobindo among the top ten global manufacturers of SSPs and cephalosporins and enhance it competitiveness in global markets,'' stated a report by Edelweiss Capital. Recently, export opportunities, especially to the US, opened up even further with easing of access to low-cost generics. "This could help companies such as Aurobindo Pharma immensely as they already have facilities matching USFDA standards and are expected to establish a presence in regulated markets including US,'' said the analyst. "With a leaner cost base and widened product pipeline, we expect the company to show buoyant earnings growth over the next two years," the report stated. For the year ended March 31, 2003, Aurobindo Pharma has registered a net profit of Rs 103.14 crore (Rs 68.51 crore) over net sales of Rs 1190.38 crore (Rs 1037.72 crore).
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