Aurobindo Pharma rises on launch of greenfield facility in Andhra

Aurobindo Pharma shares gained half a percent in early trade on October 17 after it launched the greenfield manufacturing unit of Eugia Steriles in Visakhapatnam, Andhra Pradesh.

Eugia Steriles is a 100 percent subsidiary of Eugia Pharma Specialities and a step-down arm of Aurobindo Pharma. This unit will manufacture general injectables and is expected to supply them globally in phases.

As of 9.40am, shares of the company were trading at Rs 913.6, higher by 0.45 percent on the NSE. The project cost of the unit is approximately Rs 600 crore, and commercial production will begin in the fourth quarter in phases. This will be subject to  necessary regulatory approvals from India as well as the US.

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Earlier this month, Aurobindo Pharma’s subsidiary  CuraTeQ Biologics signed a  Letter of Intent for CMO operations with a Singapore-based firm. The subsidiary looks to expand its biologics manufacturing facilities and exploring the possibilities to enter into contract manufacturing operations for biologicals.

Shareholding pattern, share price movement

In comparison to the Nifty 50’s one-year performance of 14.8 percent, the Aurobindo Pharma share price has risen 77.1 percent in the same time period. The counter sees low volatility, as indicated by the one-year beta of 0.55. The stock is neither overbought, nor oversold, as shown by the RSI of 57.9.

The firm’s promoters have maintained a 51.8 percent stake in the pharma player over quarters. FIIs hold 22.5 percent in the firm, as of the September quarter shareholding data, while DIIs owned 18.3 percent. Of the DIIs, mutual funds own 11.27 percent. The public held 7.43 percent in Aurobindo Pharma.

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