Aurobindo Pharma has received a "BUY" rating from KR Choksey, with a target price of INR 1,591. The company's recent revenue figures met expectations, but EBITDA and adjusted PAT were lower due to higher-than-expected other expenses, decreased other income, and increased finance costs.

Aurobindo Pharma is projected to achieve an 8.7% CAGR in revenue and a 17.7% CAGR in adjusted PAT from FY24 to FY26. The firm maintains its FY26 EPS estimate at INR 79.6, applying a PE multiple of 20.0x, reflecting confidence in the company's efforts to address supply chain challenges in injectables and stabilize in the coming quarters.

Aurobindo is also improving its API business through backward integration to reduce reliance on external suppliers and improve margins over time. The recent stock price correction has led to a change in the rating from "ACCUMULATE" to "BUY."