Aurobindo Pharma shares started Tuesday’s session on a positive note paring previous day’s losses even as global brokerages downgraded the stock with a raised target price considering the recent sharp run-up in the stock.

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The stock in early trade zoomed by as much as 2.45 per cent to day’s high price of Rs 1225 per share, inching close to its 52-week high price of Rs 1,245.6.

Here’s how brokerages view Aurobindo Pharma after Q4 show

Aurobindo Pharma Ltd (CMP 1196)

  

Brokerage

New rating

OLD Rating

New Target

Old Target

Potential downside or upside

CLSA

Outperform

Buy

1320

1235

10.4%

Goldman Sachs

Buy

 

1325

1275

10.82%

HSBC

Buy

 

1370

1340

14.58%

Citi

Sell

 

1040

 

-13%

Macquarie

Outperform

 

1300

 

9%

Hong Kong-based global brokerage CLSA has downgraded the stock to ‘outperform’ from the earlier ‘buy’ call with a raised target of Rs 1320 from Rs 1235. The brokerage is of the view that for the company FY25 shall be marred by no major product launches. Further, the downgrade is made considering the recent run-up in the stock. The stock over the last one year has gained a significant 95 per cent.

Citi, on the other hand, maintains a ‘sell’ view on the stock with a target of Rs 1040. The brokerage said that though the company’s Q4 was slightly ahead on EBITDA, margin expansion seems to be peaking out. EBITDA margin during the reporting quarter stood at 22.3 per cent, a 50 bps expansion QoQ. Also, the brokerage mentioned that the pharma major guided for 21-22% EBITDA margin in FY25E.

Nevertheless, Goldman Sachs is bullish on the counter and has suggested a buy call with a target raised to Rs 1,325. The brokerage said that the company continues to post a strong show and further margin expansion is on the cards. The company remains confident of achieving decent growth in FY25 aided by multiple drivers such as continued momentum in the US, decent growth for Eugia & gRevlimid ramp-up in coming quarters, it added.