Motilal Oswal has maintained a Buy rating on Aurobindo Pharma with a target price of ₹1,370, citing strong Q4 performance, recovery in production, and growth traction in European markets.
The brokerage noted that Q4 sales and EBITDA exceeded estimates by 2% and 3%, respectively, highlighting operational resilience. The resumption of normalized production at Eugia III is expected to significantly enhance profitability in FY26.
MOSL added that Aurobindo’s strong presence in Europe and upcoming product launches are likely to support sustained growth momentum over the coming years. It expects the company to deliver a CAGR of 9% in sales, 12% in EBITDA, and 18% in PAT over FY25–27.
The brokerage has chosen to maintain earnings estimates for FY26 and FY27, and values the stock at 16x 12-month forward earnings, citing that current valuations remain attractive.
Disclaimer: The views and recommendations expressed above are those of the brokerage firm. Business Upturn does not endorse or offer any investment advice.
