Aurobindo posted decent numbers. Q4 revenue up by 11.2%, EBITDA up by 11.5%. EBITDA Margin at 19.9%. Net profit was flat due to higher depreciation.
Aurobindo seems to maintaining profitability compared to peers even when prices are falling in the US market (It has 45% of its sales in US as per presentation dated March). To my mind this is a visible moat of the Company whether it is by way of lower costs of production, better compliance to regulations or right product mix.
Unfortunately Mr Market does not seem to be having this view as Aurobindo is trading at TTM PE of around 14-15 times only. One reason I can think of is very high dependence on saturated markets of US and EU with growth markets comprising only 5% of its Revenue.
Also, I could not attend todays concall since it was scheduled at 8:30 AM. Requesting members for views and keys outcome from Concall in case any one attended. Thanks.
Disclosure: Slowly accumulating this share since 2016