Shares of the largest Indian player in the US generic drug industry jumped nearly 6.5 percent in early trade and reached a 52-week high of Rs 834.80 on July 27 after the business announced the establishment of a subsidiary in Russia.
At 1:15 p.m., shares of Aurobindo Pharma were trading at Rs 839.40 , with a gain of 6.3 percent on the National Stock Exchange.
As per company’s exchange filing, Aurobindo Pharma announced the establishment of a wholly owned subsidiary, Auro Pharma LLC, in the Russian market. The newly formed subsidiary will manage Aurobindo’s pharmaceutical business activities in Russia, and the business will invest $10 million in the new subsidiary.
Aurobindo Pharma is the global leader in semi-synthetic penicillin medications and is primarily engaged in the development and sale of active pharmaceutical ingredients, generic pharmaceuticals, and associated services.
Last year, the stock increased by 92 percent, and in six months, it increased by 100 percent.
Revenue of Aurobindo Pharma increased by 6 percent from Rs 23,455 crore in FY 21-22 to Rs 24,855 crore in FY 22-23. During the same period, net profit fell by 27 percent, from Rs 2,678 crore to Rs 1,939 crore.
The company’s profitability ratio is 11.12 percent operating margin, 7.80 percent net profit margin, 7.18 percent return on equity, and 9.73 percent return on capital employed.
As per latest shareholding pattern,The promoters own 51.83 percent of the company, while Foreign institutional investors own 24.12 percent and domestic institutional investors own 15.73 percent stake.
Written by Omkar Chitnis
