Stock Pick : Aurobindo Pharma

Aurobindo Pharma was born of a vision. Founded in 1986 by Mr. P.V.Ramaprasad Reddy, Mr. K.Nityananda Reddy and a small, highly committed set of professionals, the company became a public venture in 1992. It commenced operations in 1988-89 with a single unit manufacturing semi synthetic penicillins (SSPs) at Pondicherry.

Aurobindo Pharma had gone public in 1995 by listing its shares in various stock exchanges in the country. The company is the market leader in semi-synthetic penicillin drugs. It has a presence in key therapeutic segments like SSPs, cephalosporins, antivirals, CNS, cardio-vascular, gastroenterology, etc.

Aurobindo’s R & D strengths lie in developing intellectual property in non-infringing processes and resolving complex chemistry challenges. In the process, Aurobindo develops new drug delivery systems, dosage formulations and applies new technology for better processes.


Over the years, the Aurobindo Pharma has evolved into a knowledge driven company. It is R&D focused, has a multi-product portfolio with multi-country manufacturing facilities, and is becoming a marketing conglomerate across the world.

Aurobindo Pharma created a name for itself in the manufacture of bulk actives, its area of core competence. After ensuring a firm foundation of cost effective production capabilities and a clutch of loyal customers, the company has entered the high margin speciality generic formulations segment, with a global marketing network.

The formulation business is systematically organised with a divisional structure, and has a focused team for each key international market. Aurobindo believes in gaining volume and market share in every business/segment it enters.

Aurobindo has invested significant resources in building a mega infrastructure for APIs and formulations to emerge as a vertically integrated pharmaceutical company. Aurobindo’s five units for APIs and four units for formulations are designed for the regulated markets.
[source : company website]

Aurobindo Pharma will go for a series of filings - totalling some 250 — in regulated markets, mainly in the US, in the next three years to tap emerging opportunities and to create new ones.

Aurobindo is also preparing for a major foray in Japan which is the world’s third-largest pharmaceuticals market after the US and Europe. However, though Japan is a huge branded generics market, Aurobindo is looking to pitch for the unbranded generics where the margins are huge[source DNA]

This stock seemed to have bottomed out and is trading at around 8-9 PE. This is very cheap for a high growth good stocks.

While most of its peers are trading at around 25-30 PE like cipla and ranbaxy. This stock can give great returns in next 1-2 years from current market price .

Mint money!! :-)