Motilal Oswal has issued a buy rating on Aurobindo Pharma with a target price of ₹1,860 per share in its research report dated August 06, 2026. According to the brokerage's assessment, the stock is currently trading at 20x 12-month forward earnings valuations. The target price is based on valuing the company at 20x 12-month forward earnings. This contrasts with Prabhudas Lilladher's hold rating and ₹1,600 target price issued on the same date.
Aurobindo Pharma's (ARBP) Q1FY27 delivered in-line revenue but exceeded expectations with better-than-expected EBITDA and PAT performance of 6% and 8% beat respectively. As reported by Motilal Oswal, this outperformance was driven by improved traction in EU and ROW segments, while US sales remained largely in line for the quarter. The company's adjusted EBITDA stood at ₹19.2 billion, representing a 20% year-on-year increase and coming in 4% above Prabhudas Lilladher's estimates.
ARBP closed the Lannett acquisition deal on June 29, 2026, following approval from the US FTC and subsequent payment of USD 250 million. According to Motilal Oswal's analysis, this acquisition adds a US manufacturing facility that provides scope for generating business in controlled substances (CS) and other government demands. The brokerage believes Aurobindo Pharma will be able to leverage Lannett's strategic partnerships to improve the scope of its business operations.
According to Prabhudas Lilladher's analysis, Aurobindo Pharma has multiple growth drivers in place with investments across vaccines, injectables, biosimilars and PLI schemes. These investments are expected to be reflected from FY27E/FY28E. The brokerage highlighted that in the near term, the ramp up in PenG facility and Vizag plant commercialization will be key factors to monitor. Motilal Oswal maintains largely unchanged estimates for FY26/FY27.
Prabhudas Lilladher has increased its FY27E and FY28E EPS estimates by 4-7% as it factors in the Lannet acquisition. The brokerage believes this acquisition will contribute to the company's earnings growth trajectory in the coming fiscal years. Motilal Oswal continues to maintain its estimates for FY26/FY27 while valuing the stock at 20x 12-month forward earnings.
