When Demerger of injectable business going to happen?
Any tentative date
Added second tanche of Aurobindo pharma at 680 rupees in hopes of possible demerger of its injectable businees which as far as I know is larger than Injectable business of Gland pharma.
As far as I know Gland pharma has no regulatory issues with USFDA thats why Mr market gives it higher valuation in comparison to Aurobindo pharma.
Looking at current market price risk reward ratio is looking in favour of Aurobindo pharma.Will add further if share price further tanks 10%.
Please share your views as my views can be biased.
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Aurobindo Pharma has to come clean from ED and other cases. Court summons Jagan, 17 others - The Hindu Not sure when and how they were involved.
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above link is for a video and that talks about demerger. the video talks about the risk and what separates gland and auro. Can any expert comment about their take?
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Aurobindo Pharma Managing Director N Govindarajan resigns
Read more at:
what is the reason behind his resignation⌠Is there is any corporate governance issueâŚ
Just got to know that Aurobindo Pharma has a bid in place for one of the two new teams for IPL next season. Does this venture into a non-core, and technically unrelated business raise any red flags?
Would appreciate any views/comments in order to get a better idea of whether this would have any major effects on the company and the shareholdersâ interest going forward. TIA.
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AUROBINDO PHARMA Q2 : Cons. Net Profit Down 14 % at Rs 697 cr (YOY),Down 9 % (QOQ)
Revenue Down 8 % at Rs 5941 cr (YOY) , Up 4 % (QOQ)
EBITDA Down 17 % at Rs 1186 cr (YOY), Down 2 % (QOQ)
Margins at 19.9 %V 22 % (YOY),21.2 % (QOQ)
Read from page 17. As per management, pressure on margins is due to higher key raw material cost and logistics cost.
De growth in ARV segment is due to additional inventory buildup by users to manage covid uncertainty.
7 ANDA &1NDA final approval obtained by USFDA in this quarter. Complete list is given on page no. 21.
Disclosure: Invested and biased. Avg. Buying price is 720.
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Few observations on Aurobindo Pharma.
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Stock is trading at discount of 70% to Intrinsic value of Rs.1181.
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Median PE is around 15. Whereas current PE is around 8
3.P/BV is 1.74 (which is quite cheap)
Apart from corporate governance issues such as MD resignation without even allowing him to serve notice period, would like to understand learned members views abt other reasons on trading at such discount.
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Can anyone summarize this article. Looks like the company is in talks to sell a share of its injectable busines to PE firms for value unlocking.
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Aurobindo Pharma promoters are gradually releasing pledges in tranches since 23rd November. Is it anywhere related to the proposed stake sale of its injectable business (as a preparatory step) or due to repayment of the debt upon maturity? Appreciate if experienced boarders can share their insights.
https://www.bseindia.com/corporates/sastpledge_new.html?scripcd=524804
Disc: Invested
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they have taken debt mostly to fund Aurobindo realty. Hopfeully their realty arm is paying back loans.
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Latest updates. The race has now come down to 2 players and a deal may be closed any time soon.
Once the injectable business gets listed, will the existing Aurobindo Pharma investors get equal number of shares in the newly listed entity?
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The report states that the shareholding in Eugia will mirror that of Auro Pharma. So if that is true then yes one will get shares in Demerged biz of Injectables.
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Hey everyone,
Hope all of you are doing great. I am little puzzled regarding auro. I have never liked auro due to management and usfda issues and preferred to invest in gland instead. But now with the demerger story i am pretty interested in auro. With almost similar revenue and growth to gland, auro is way behind when it comes to valuation. Now with blackstone coming in - I am pretty sure the discount will drastically reduce. Even if we take a 50pct cut to current mcap of gland, auro gets valued at 25-30k crmcap if we add another 20k cr mcap for generics (worst case scenario), we still see a 50k cr mcap which justifies a 25pct price increase immediately. We have all seen what happens to valuations when a PE player enters so I feel 25pct returns is being very conservative.
Any views?
Disclosure: Invested, planning to add more
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At 52:00 , is he talking about Autobindo Pharma.
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I guess so. Because, to my knowledge this is the only prominent Pharma company where the owners hold a sizeable share in an infrastructure company. This is a known case and many have flagged this as a concern over the past few years. The markets have already discounted this which is reflecting in the stock price. I believe the governance should improve since Blackrock is buying into this company and they will not tolerate such malpractices.
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