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Shares of Aurobindo Pharma Ltd. declined over 2% on Wednesday, May 28, as analysts remain divided on the drugmaker's prospects after its March quarter results.
Analysts that are bullish on the stock, expect it to rise as high as 19% from current levels, while the sceptics are projecting a 7% downside.
Among the bears, UBS and Citi both have a "sell" rating on Aurobindo, while Goldman Sachs, HSBC and CLSA have retained their optimistic stance. Here's what they had to say:
Citi
The brokerage has a "sell" rating on Aurobindo Pharma and has cut its price target on the stock to ₹1,100 per share from ₹1,140 earlier, implying a 7.4% downside from Tuesday's close.
It said the Aurobindo's quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) in dollar terms was 5% below its estimates, adjusted for the gRevlimid contribution of $40 million - $60 million.
Citi said the management commentary was underwhelming, with high single-digit growth expectations in the financial year 2026 (ex-gRevlimid) and no material improvement in injectables.
As growth in the US is flattening — despite around 10% volume expansion in FY25, there is a possibility of negative margin surprise in the next one to three quarters, once gRevlimid goes off, Citi said.
In light of this, Citi has cut Aurobindo Pharma's Earnings Per Share (EPS) estimates for financial year 2026-2027 by 8%.
UBS
UBS has a "sell" rating on the stock with a price target of ₹1,200 per share, which is just a percent lower than its last closing price.
The brokerage said the company's FY26 guidance is weak on both, revenues and margin. EPS estimates have been cut by 9% on the stock.
Among the key reasons for the weak guidance, UBS has cited the new Penicillin G plant that is not expected to operate for six to eight months in financial year 2026, price erosion for gRevlimid and a subdued performance at Eugia III.
Goldman Sachs
On the flip side, Goldman Sachs has a "buy" rating on Aurobindo Pharma with a price target of ₹1,275 per share, projecting an upside potential of 7.3% from its previous closing price.
Goldman Sachs said Aurobindo Pharma had a decent quarter, and is aiming for resilient performance despite gRevlimid impact in the new financial year.
The company has guided for high single-digit topline growth (ex-gRevimid) while aspiring to maintain margin in FY26, the brokerage reiterated.
It said the company's production-linked incentive (PLI) project has been delayed as it now aspires to achieve break-even in the ongoing fiscal.
Goldman Sachs said it believes the company's current valuation at a 30-40% discount to coverage average allays most of the concerns around pricing pressure / plant statuses.
HSBC
HSBC too has a "buy" rating on Aurobindo Pharma with a price target of ₹1,415 per share, an showcasing an upside potential of 19% from its previous closing price.
Aurobindo Pharma has guided for a steady EBITDA margin in FY26 from the previous year, despite the gRevlimid loss. Its outlook is intact for US and Europe.
HSBC said going ahead, the expedited pick-up in supplies from Eugia 3 and newer plants is key.
CLSA
CLSA has an "outperform" rating on Aurobindo Pharma with a price target of ₹1,400 per share, an upside of 17.8% from its previous closing price.
The company's guidance factors in the temporary shutdown of its Pen-G plant due to a fire, according to CLSA.
CLSA said it has cut revenue and profit after tax (PAT) estimates for Aurobindo Pharma for FY26-27, mainly due to slightly lower guidance for the new year and the temporary shutdown of the Pen-G plant, thus delaying the ramp-up to full production.
Of the 29 analysts that have coverage on the stock, 23 have a "buy" rating, two have a "hold" rating and four have a "sell" rating.
Shares of Aurobindo Pharma Ltd declined 2.05% to ₹1,166.8 apiece at 9.30 am on Wednesday, May 28. The stock has declined 13.76% this year, so far.
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