In Monday’s trading session, the shares of an integrated global pharmaceutical company surged by 6.2 percent to hit a new 52-week high at Rs. 1,409.25, after the company’s Board scheduled a meeting to consider the proposal for share buyback.
At 11:44 a.m., the shares of Aurobindo Pharma Limited were trading in the green at Rs. 1,397, up by 5.3 percent, compared to its previous closing price of Rs. 1,327.05, with a market cap of Rs. 82,136.8 crores.
What’s the News:
Aurobindo Pharma informed the stock exchanges that a meeting of the company’s Board will be held on 18th July 2024, to consider a proposal for share buyback of the fully paid-up equity shares of the company.
A share buyback (or stock buyback) is when a company purchases its own outstanding shares from the stock market.
Companies do this to reduce the number of shares available on the market, which can increase the value of the remaining shares.
Buybacks can also be a signal to investors that the company’s management believes the shares are undervalued.
Previous News:
On 31st May, Aurobindo Pharma Limited signed a Master Service Agreement (MSA) for the expansion of biologics manufacturing facilities of TheraNym Biologics Private Limited.
TheraNym Biologics Private Limited, a wholly-owned subsidiary of Aurobindo and an affiliate of CuraTeQ Biologics Private Limited (a wholly-owned subsidiary of Aurobindo Pharma), signed an agreement with Merck Sharpe & Dohme Singapore Trading Pte. Ltd. (MSD) and its affiliates.
As per the arrangement, TheraNym will build the manufacturing facility, manufacture the products and supply to MSD. It will also invest around Rs. 1,000 crores for establishing a manufacturing facility with large-scale bioreactors.
Financials:
Financially, the company experienced significant growth in its revenue from operations, showing a year-on-year rise of 17.4 percent from Rs. 6,378.7
crore in Q4 FY22-23 to Rs. 7,492 crore in Q4 FY23-24.
Similarly, its net profit increased during the same period from Rs. 506 crore to Rs. 907.3 crore, indicating a growth of 79.3 percent YoY.
Stock Performance
The stock has delivered positive returns of nearly 90.5 percent in one year, and around 22.2 percent returns in the last six months. So far in 2024, the shares of Aurobindo Pharma have given positive returns of about 30.3 percent.
About the company:
Aurobindo Pharma Limited is principally engaged in the manufacturing and marketing of generic pharmaceuticals, branded specialty pharmaceuticals and active pharmaceutical ingredients and related services.
The company’s robust product portfolio is spread over therapeutic/product areas encompassing CNS, Anti-Retroviral, CVS, Antibiotics, Gastroenterological, Anti-Diabetics and Anti-Allergic, supported by a strong R&D set-up.
Written by Shivani Singh
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