IGI Logo

Below is quote on "Aurobindo Pharma stock down by 7%" by Mr. Yash Gupta, Equity Research Associate, Angel Broking Ltd   

Aurobindo pharma stock down by 7% on the back of company announcement of capital infusion of ₹420 Crores in Cronus Pharma and weak set of numbers for Q1FY2022.  Aurobindo Pharma Limited announced that the company will subscribe to fresh equity shares in Cronus Pharma Specialities India Private Limited, amounting to Rs, 420 Crores for 51 % of the equity share capital. Cronus is a Hyderabad based generic veterinary pharmaceutical products company engaged in the development, manufacturing, and sale of veterinary pharmaceutical products.  Cronus Pharma has reported revenue of ₹11.4 Crores in FY2021 and the company awaits regulatory inspection from USFDA. Aurobindo pharma will be doing capital infusion at valuations of 72 times of FY2021 sales, which we believe valuations are on the higher side.  

Above views are of the author and not of the website kindly read disclaimer