Aurobindo Pharma Share Price Target for 2024, 2025, 2030, 2040, and 2050
In this post, we will discuss the Aurobindo Pharma share price target for the upcoming years. The pharmaceutical industry has emerged as a profitable investment since the COVID pandemic. The last decade saw dramatic growth in the pharmaceutical industry with the adoption of new therapies, the emergence of biosimilars, increased demand for specialty drugs, and improvements in healthcare access and affordability. One of the industries with the most regulations is the pharmaceutical sector. To generate top-notch solutions for the demands of patients all around the world, the corporations are consistently improving their research and development capabilities. Aurobindo Pharma is dedicated to being one of the pharmaceutical industry’s most sustainable businesses.
About Aurobindo Pharma Ltd.
Aurobindo Pharma Limited is the second-largest Indian multinational pharmaceutical manufacturing company, incorporated in 1986. It is a large-cap company with a market capitalization of ₹ 25,901.42 crore. It is the largest generics company in the US (by Rx dispensed) and among the top 10 generics companies in six out of nine countries in Europe. The company exports to more than 150 countries, and over 90% of its revenue comes from exports.
Contribution in total revenue (%) of Aurobindo Pharma Ltd.
Aurobindo Pharma Limited Financials
Consolidated
Standalone
Profit & Loss A/c
Balance Sheet
Ratios
| Particulars | FY 2021-22 | FY 2020-21 | FY 2019-20 | FY 2018-19 | FY 2017-18 |
|---|---|---|---|---|---|
| Total Revenue | 23,775.84 | 25,155.47 | 23,290.38 | 19,718.87 | 16,565.01 |
| Total Revenue Growth (%) | -5.48% | 8.01% | 18.11% | 19.04% | 10.25% |
| Total Expenses | 20,243.88 | 20,571.10 | 19,506.04 | 16,542.16 | 13,326.97 |
| Total Expenses Growth (%) | -1.59% | 5.46% | 17.92% | 24.13% | 11.34% |
| Profit after Tax (PAT) | 2,648.15 | 5,334.84 | 2,830.97 | 2,364.73 | 2,423.17 |
| PAT Growth (%) | -50.36% | 88.45% | 19.72% | -2.41% | 5.28% |
| Operating Profit Margin (%) | 15.26% | 18.80% | 17.70% | 17.58% | 20.14% |
| Net Profit Margin (%) | 11.29% | 21.53% | 12.25% | 12.08% | 14.71% |
| Basic EPS (₹) | 45.19 | 91.05 | 48.32 | 40.36 | 41.36 |
| Particulars | FY 2021-22 | FY 2020-21 | FY 2019-20 | FY 2018-19 | FY 2017-18 |
|---|---|---|---|---|---|
| Total Assets | 33,921.72 | 33,853.99 | 28,926.35 | 26,454.36 | 21,101.04 |
| Total Assets Growth (%) | 0.20% | 17.04% | 9.34% | 25.37% | 29.86% |
| Total Liabilities | 9,347.67 | 11,925.00 | 12,115.83 | 12,561.99 | 9,418.80 |
| Total Liabilities Growth (%) | -21.61% | -1.58% | -3.55% | 33.37% | 36.99% |
| Total Equity | 24,574.05 | 21,928.99 | 16,810.52 | 13,892.37 | 11,682.24 |
| Total Equity Growth (%) | 12.06% | 30.45% | 21.01% | 18.92% | 24.62% |
| Net Worth | 24,574.05 | 21,928.99 | 16,810.52 | 13,892.37 | 11,682.24 |
| Current Ratio (x) | 2.22 | 1.86 | 1.44 | 1.28 | 1.41 |
| Total Debt to Equity (x) | 0.10 | 0.23 | 0.32 | 0.49 | 0.38 |
| Contingent Liabilities | 1,145.45 | 1,083.17 | 659.39 | 688.84 | 716.95 |
| Particulars | FY 2021-22 | FY 2020-21 | FY 2019-20 | FY 2018-19 | FY 2017-18 |
|---|---|---|---|---|---|
| Return on Equity (%) | 10.77% | 24.32% | 16.84% | 17.02% | 20.74% |
| Return on Capital Employed (%) | 13.89% | 20.09% | 23.31% | 23.82% | 26.66% |
| Return on Assets (%) | 7.80% | 15.75% | 9.78% | 8.93% | 11.48% |
| Interest Coverage Ratio (x) | 96.77 | 76.71 | 13.40 | 13.10 | 42.66 |
| Asset Turnover Ratio (x) | 0.41 | 0.61 | 79.85 | 73.95 | 78.01 |
| Price to Earnings (x) | 14.81 | 9.69 | 8.55 | 19.49 | 13.48 |
| Price to Book (x) | 1.59 | 2.36 | 1.44 | 3.32 | 2.80 |
| EV/EBITDA (x) | 7.94 | 8.95 | 5.30 | 12.38 | 9.26 |
| EBITDA Margin (%) | 20.06% | 23.06% | 21.88% | 20.99% | 23.52% |
Profit & Loss A/c
Balance Sheet
Ratios
| Particulars | FY 2021-22 | FY 2020-21 | FY 2019-20 | FY 2018-19 | FY 2017-18 |
|---|---|---|---|---|---|
| Total Revenue | 11,958.13 | 16,413.54 | 13,669.85 | 12,457.11 | 10,350.55 |
| Total Revenue Growth (%) | -27.14% | 20.07% | 9.74% | 20.35% | 6.24% |
| Total Expenses | 10,245.94 | 12,220.53 | 11,292.15 | 10,492.49 | 8,007.61 |
| Total Expenses Growth (%) | -16.16% | 8.22% | 7.62% | 31.03% | 5.86% |
| Profit after Tax (PAT) | 1,454.71 | 3,112.91 | 1,872.74 | 1,529.73 | 1,812.77 |
| PAT Growth (%) | -53.27% | 66.22% | 22.42% | -15.61% | 6.21% |
| Operating Profit Margin (%) | 15.31% | 26.67% | 19.73% | 17.91% | 23.32% |
| Net Profit Margin (%) | 12.88% | 19.67% | 14.11% | 12.47% | 17.65% |
| Basic EPS (₹) | 24.83 | 53.13 | 31.96 | 26.11 | 30.94 |
| Particulars | FY 2021-22 | FY 2020-21 | FY 2019-20 | FY 2018-19 | FY 2017-18 |
|---|---|---|---|---|---|
| Total Assets | 21,600.95 | 23,188.99 | 19,534.57 | 18,140.72 | 15,793.84 |
| Total Assets Growth (%) | -6.85% | 18.71% | 7.68% | 14.86% | 21.28% |
| Total Liabilities | 4,483.61 | 7,264.38 | 6,509.01 | 6,790.10 | 5,811.26 |
| Total Liabilities Growth (%) | -38.28% | 11.60% | -4.14% | 16.84% | 26.70% |
| Total Equity | 17,117.34 | 15,924.61 | 13,025.56 | 11,350.62 | 9,982.58 |
| Total Equity Growth (%) | 7.49% | 22.26% | 14.76% | 13.70% | 18.33% |
| Net Worth | 17,117.34 | 15,924.61 | 13,025.56 | 11,350.62 | 9,982.58 |
| Current Ratio (x) | 2.35 | 1.83 | 1.77 | 1.55 | 1.56 |
| Total Debt to Equity (x) | 0.11 | 0.25 | 0.29 | 0.4 | 0.37 |
| Contingent Liabilities | 277.61 | 1,337.36 | 2,174.36 | 2,736.18 | 1,480.23 |
| Particulars | FY 2021-22 | FY 2020-21 | FY 2019-20 | FY 2018-19 | FY 2017-18 |
|---|---|---|---|---|---|
| Return on Equity (%) | 8.49% | 19.54% | 14.37% | 13.47% | 18.15% |
| Return on Capital Employed (%) | 9.92% | 25.69% | 19.87% | 19.25% | 23.86% |
| Return on Assets (%) | 6.73% | 13.42% | 9.58% | 8.43% | 11.47% |
| Interest Coverage Ratio (x) | 126.59 | 164.22 | 10.87 | 9.51 | 45.3 |
| Asset Turnover Ratio (x) | 0.5 | 0.74 | 67.91 | 67.57 | 65.02 |
| Price to Earnings (x) | 26.95 | 16.61 | 12.94 | 30.12 | 18.02 |
| Price to Book (x) | 2.29 | 3.24 | 1.86 | 4.06 | 3.27 |
| EV/EBITDA (x) | 19.10 | 11.72 | 9.02 | 19.36 | 13.11 |
| EBITDA Margin (%) | 18.99% | 29.76% | 23.28% | 21.28% | 26.78% |
Important Note: These price targets of “Aurobindo Pharma Limited” are only for reference purpose only, short-term and long-term Aurobindo Pharma Limited stock price predictions may be different due to the different analyzed time series. This prediction is only if there are positive market sentiments, and any uncertainties in the company or global market condition is not covered in this analysis.
Aurobindo Pharma Share Price Target for 2023
After the COVID pandemic, the pharmaceutical industry has emerged as a major growth driver in the country or across the globe. Pharmaceutical companies have also performed well this year. If we analyze the share price of Aurobindo Pharma during the last years, it has gone up to ₹ 727.95. This year it is expected to go up to ₹ 510.
| Year | First Target | Second Target |
|---|---|---|
| 2023 | ₹ 490 | ₹ 510 |
Aurobindo Pharma Share Price Target for 2024
The company is building a diversified portfolio of finished dosage forms in orals, liquids, topicals, biosimilars, nasals, and parenteral products targeted at global markets, and in the previous financial year, the company’s primary R&D focus was complex parenteral products. The company’s long-term goal envisions a shift to a higher mix of branded products within the categories where it has a dominant presence. If we analyze the share price of the coming year, the first target would be ₹ 550 and second target will be ₹ 570.
| Year | First Target | Second Target |
|---|---|---|
| 2024 | ₹ 550 | ₹ 570 |
Aurobindo Pharma Share Price Target for 2025
Aurobindo Pharma has planned to make an array of distinctive brands that will enable the company to make its own space and shift from the crowded generics market with a better command over profitability and user segments. The company’s new product development capability, along with its manufacturing flexibility and very large geographic presence, would act as force multipliers. In the previous financial year, its R&D investment towards future pipeline growth totaled ₹ 15,814 million, with a significant share going towards the biosimilars pipeline. This will aid the company in developing a distinct brand in the future.
| Year | First Target | Second Target |
|---|---|---|
| 2025 | ₹ 600 | ₹ 620 |
Aurobindo Pharma Share Price Target for 2026
By 2026, the global pharmaceutical market is expected to grow at a rate of 3-6%, reaching approximately $ 1.8 trillion. Demand for over-the-counter (OTC) medicines, generics, and branded pharmaceutical products will rise in many developed and developing countries due to an aging population. Demand for chronic disease treatments, in particular, will rise in the medium and long term.
Oncology and immunology are expected to grow at a CAGR of 9-12% and 6-9% by 2026, respectively, driven by significant increases in new treatments and medicine use. And Globally, incremental savings from biosimilars are expected to reach $ 215 billion by 2026. Over the next five years, 300 new medicines are expected to be launched, contributing $196 billion in spending.
| Year | First Target | Second Target |
|---|---|---|
| 2026 | ₹ 650 | ₹ 700 |
Aurobindo Pharma Share Price Target for 2027
Greater access to healthcare and medications, as well as increased disposable household incomes, is expected to boost pharmaceutical consumption in emerging markets. Initially, generic and over-the-counter medicine suppliers will benefit from these trends. Aurobindo Pharma will benefit from this as a major player this semester. If we talk about share price in this year, the first target will be ₹ 750 and the other will be ₹ 800.
| Year | First Target | Second Target |
|---|---|---|
| 2027 | ₹ 750 | ₹ 800 |
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Aurobindo Pharma Share Price Target for 2028
Aurobindo Pharma Limited has a very strong presence in the US market, which accounts for almost half of its manufacturing revenue and has the largest number of manufacturing facilities outside India. However, this business was one of the hardest hit this year due to increased competition on the pricing of formulations and an unprecedented rise in input materials. Aurobindo’s stock is also not doing well, but it is not permanent. If we predict the share price target in 2028, the first target will be ₹ 900 and the second target will be ₹ 950.
| Year | First Target | Second Target |
|---|---|---|
| 2028 | ₹ 900 | ₹ 950 |
Aurobindo Pharma Share Price Target for 2030
On the other hand, if we look at the company’s European business, it grew at a steady pace of around 10 to 15 percent, as did its growth markets in countries like Canada and Brazil. The company has completed the development of its injectable manufacturing facility in the US and expects significant growth in demand from that region in the coming years. Biosimilars will continue to grow rapidly at a CAGR of 15% over the next decade, reaching $ 75 billion by 2030. The growth will be driven by the rise of branded medicines and the aggressive measures by governments to reduce healthcare expenditure. In 2030, it is predicted that the stock will show higher growth at that time.
| Year | First Target | Second Target |
|---|---|---|
| 2030 | ₹ 1,200 | ₹ 1,500 |
Aurobindo Pharma Share Price Target for 2040
Aurobindo Pharma has been consistently growing its presence in the China market, which is not only one of the largest healthcare markets in the world but also a dominant supply base. The company is creating an oral formulation facility in China and plans to fulfill its international demand apart from its domestic contribution. Aurobindo Pharma Limited began local manufacturing in China. The company also intends to transfer a few products from Europe to the China facility. If Aurobindo Pharma Ltd. is successful in realizing its plans, there should be significant accretion to both its topline and bottomline spreads.
| Year | First Target | Second Target |
|---|---|---|
| 2040 | ₹ 3,500 | ₹ 3,800 |
Aurobindo Pharma Share Price Target for 2050
Two sectors will have a bright future with human development: technology and pharmaceuticals. According to experts, the danger of an epidemic like Kovid will remain in the near future as well. Aurobindo Pharma has already invested in research and development for the future. The company will have many opportunities in the future, and it is expected that Aurobindo Pharma will take advantage of them.
The company has been consistently working on the opportunities made available by the government’s Production Linked Incentive (PLI) scheme, with penicillin and related areas offering some very appealing prospects. Aurobindo Pharma Ltd. has initiated building capacities in these areas and invested ₹ 2,677.7 million this year. The total capital for this project is expected to be around ₹ 18,500 million to ₹ 19,000 million, which will help to significantly enhance company backward integration, make the production value chain more resilient, and improve control over costs and sustainable profit margins.
| Year | First Target | Second Target |
|---|---|---|
| 2050 | ₹ 6,800 | ₹ 7,000 |
Aurobindo Pharma’s share price targets for 2023, 2024, 2025, 2026, 2027, 2028, 2030, and 2040 are shown in the table below.
| Year | First Target | Second Target |
|---|---|---|
| 2023 | ₹ 490 | ₹ 510 |
| 2024 | ₹ 550 | ₹ 570 |
| 2025 | ₹ 600 | ₹ 620 |
| 2026 | ₹ 650 | ₹ 700 |
| 2027 | ₹ 750 | ₹ 800 |
| 2028 | ₹ 900 | ₹ 950 |
| 2030 | ₹ 1,200 | ₹ 1,500 |
| 2040 | ₹ 3,500 | ₹ 3,800 |
| 2050 | ₹ 6,800 | ₹ 7,000 |
Why is Aurobindo Pharma’s Share Price Falling?
All pharmaceutical company stocks performed well during the COVID epidemic in 2020, but sadly, several pharma company stocks have since declined. The Aurobindo Pharma Ltd. is one of them. The share price of Aurobindo Pharma has decreased 34.5% over a year. The shares have decreased in price by 37.2% so far in 2022.
The following are the causes of the decline in Aurobindo’s stock price:
- In November 2022, Aurobindo Pharma’s Unit IX, an intermediate facility in Gundla Machnoor Village, received a Form 483, which included ten observations from the USFDA. The management of the company received this Form 483 as a result of violations of the Food, Drug, and Cosmetic Act and related Acts. This procedural observation is unrelated to the firm’s data integrity.
- In November 2022, the company recalled 9,504 bottles of the high blood pressure medication quinapril and hydrochlorothiazide. The production of pollutants over the permitted daily consumption limit occurred outside of the currently accepted good manufacturing standards, which is why the medication was called back.
- In September 2022, AuroMedics, a part of Aurobindo Pharma, called back 11,520 injections of fondaparinux sodium. This medication is used to treat deep vein thrombosis. The callback was made in a situation when exposure to or use of an illegal substance can cause temporary or curable health problems.
Recommendations: Invest in Aurobindo’s stock or sell it?
Aurobindo’s stock shows positive growth in the coming years, but not much. For investing purposes, you can choose other stocks for a better return.
FAQ’s
What is the PE ratio of Aurobindo Pharma Ltd.?
The current PE ratio (price-earnings ratio) of Aurobindo Pharma Ltd. is 13.30.
What is the 52-week high and low of Aurobindo Pharma Ltd.’s share price?
Aurobindo Pharma Ltd. share price saw a 52-week high of ₹ 727.95 and a 52-week low of ₹ 397.20.
What will Aurobindo Pharma Ltd.’s share price target be for 2024?
The first target of Aurobindo Pharma Ltd.'s share price can be at or below ₹ 550 and the second one is at or below ₹ 570 in 2024.
What will be the Aurobindo Pharma Ltd. share price target in the next 5 years?
The first target for Aurobindo Pharma Ltd.'s share price in the next five years is ₹ 900, and the second target is ₹ 950.
What will be the Aurobindo Pharma Ltd. share price target in the next 7 years?
In the next 7 years, the first target for Aurobindo Pharma Ltd.'s share price can be ₹ 1,200, and the second is ₹ 1,500.
What will be the predicted price of Aurobindo Pharma Ltd.’s stock by 2040?
Aurobindo Pharma Ltd. shares can go up to ₹ 3,500 by the year 3,800.
Is it profitable to invest in Aurobindo Pharma Ltd. stock?
Aurobindo’s stock shows positive growth in the coming years, but not much. For investing purposes, you can choose other stocks for a better return.
What are the key metrics to analyze Aurobindo Pharma Ltd.’s share price?
Aurobindo Pharma Ltd.'s share price can be quickly analyzed on the basis of the following parameters:
- Stock's PE: 13.30
- Price to Book Ratio: 1.09
- EPS: ₹ 34.09
Note: For detailed ratios, refer to the financials section.
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