Goldman Sachs has reaffirmed its ‘Buy’ call on Aurobindo Pharma with a target price of ₹1,275, viewing the Q4FY25 results as decent despite upcoming challenges. Revenue came in at ₹8,382 crore, up 10.6% YoY, and EBITDA grew 7.1% YoY to ₹1,792 crore. Net profit stood at ₹902.8 crore.
The management has guided for high single-digit revenue growth in FY26, excluding gRevlimid, and aims to maintain stable EBITDA margins during the year. While the delay in the company’s PLI-linked manufacturing project may limit near-term upside, Goldman noted that Aurobindo still plans to achieve break-even on this front by FY26.
Goldman believes the current valuation — trading at a 30–40% discount to its sector peers — provides a margin of safety and largely factors in the concerns around pricing pressure and plant-level issues. It sees Aurobindo as well-positioned to deliver resilient performance amid regulatory and product-related transitions.
Disclaimer: The views and target prices mentioned in this article are as stated by the respective brokerage firms. They do not represent the opinions or recommendations of this publication. Readers are advised to consult their financial advisors before making any investment decisions.
