2QFY2016 Result Update | Pharmaceutical

November 18, 2015

Aurobindo Pharma

ACCUMULATE

CMP

`830

Performance Highlights

Target Price

`872

Y/E march (` cr)

2QFY16 1QFY16

% chg (qoq) 2QFY15

% chg (yoy)

Investment Period

12 months

Net sales

3280

3320

(1.2)

2862

14.6

Other income

123.4

40.4

Stock Info

Operating profit

722

725

(0.3)

618

16.8

Interest

293.0

290.9

Sector

Pharmaceutical

Adj. Net profit

451

0.0

383

17.5

Market Cap (` cr)

48,457

Source: Company, Angel Research

Net debt (` cr)

3,375

For 2QFY2016, Aurobindo Pharma (APL) posted a decent set of results. The

Beta

1.2

company posted a sale of `3,280cr (v/s `3,320cr expected), a growth of 14.6%

52 Week High / Low

861/491

yoy. Sales were driven by formulations (which constitute around 79.5% of sales),

Avg. Daily Volume

136,773

which grew by 19.9% yoy. The key formulation segments like US, Europe &

Face Value (`)

ROW, and ARV posted a yoy growth of 25.8%, 1.0% and 95.0% respectively. The

BSE Sensex

25,611

API, on the other hand, grew by 0.9% yoy. The OPM for the quarter stood at 22.0%

Nifty

7,762

(v/s 21.8% expected), ie a yoy expansion of 42bp. The Adj. Net profit for the quarter

Reuters Code

ARBN.BO

came in at `451cr V/s `383cr in 2QFY2015, a yoy growth of 17.5%. We recommend

Bloomberg Code

ARBP@IN

an Accumulate rating on the stock.

Mostly in line numbers: For 2QFY2016, APL posted a decent set of results. The

Shareholding Pattern (%)

company posted a sale of `3,280cr (v/s `3,320cr expected), a growth of 14.6%

Promoters

53.9

yoy. Sales were driven by formulations (which constitute around 79.5% of sales),

MF / Banks / Indian Fls

7.9

which grew by 19.9% yoy. The key formulation segments like US, Europe &

FII / NRIs / OCBs

29.4

ROW, and ARV posted a yoy growth of 25.8%, 1.0% and 95.0% respectively. The

Indian Public / Others

8.8

API, on the other hand, grew by 0.9% yoy. The OPM for the quarter stood at 22.0%

(v/s 21.8% expected), ie a yoy expansion of 42bp. The Adj. Net profit for the quarter

came in at `451cr V/s `383cr in 2QFY2015, a yoy growth of 17.5%.

Abs. (%)

3m 1yr

3yr

Outlook and valuation: We estimate the company’s net sales to log a 12.5%

Sensex

(7.0)

(8.3)

37.6

CAGR over FY2015-17E to `17,162cr on back of US formulations, which will be

Aurobindo

12.7

50.9

831.0

supplemented through the recent acquisitions of the Western European

formulation businesses of Actavis and US’ Natrol. The acquisitions have also led

3-year daily price chart

APL to become a >~US$2bn sales company, with ~80% of sales being

900

accounted by formulations. We recommend an Accumulate on the stock.

800

700

Key financials (Consolidated)

600

500

Y/E March (` cr)

FY2014

FY2015

FY2016E

FY2017E

400

Net sales

8,038

12,043

14,923

17,162

300

% chg

39.0

49.8

23.9

15.0

200

100

Adj. Net profit

1,333

1,619

2,084

2,498

% chg

208.6

21.5

28.7

19.9

EPS (`)

22.8

27.7

35.7

42.8

EBITDA margin (%)

25.8

20.6

22.0

23.0

SourcSource: Company, Angel Research

P/E (x)

36.4

29.9

23.3

19.4

RoE (%)

41.9

36.4

34.0

30.2

RoCE (%)

25.4

25.3

24.9

23.5

P/BV (x)

6.4

4.7

6.8

5.1

Sarabjit Kour Nangra

EV/Sales (x)

3.5

2.3

3.6

3.1

+91 22 3935 7800 Ext: 6806

EV/EBITDA (x)

13.4

11.1

16.5

13.4

[email protected]

Source: Company, Angel Research; Note: CMP as of November 13, 2015

Please refer to important disclosures at the end of this report

Aurobindo Pharma | 2QFY2016 Result Update

Exhibit 1: 2QFY2016 performance (Consolidated)

Y/E March (` cr)

2QFY2016 1QFY2016

% chg (qoq) 2QFY2015

% chg (yoy) 1HFY2016 1HFY2015

% chg (yoy)

Net sales

3,280

3,320

(1.2)

2,862

14.6

6,600

5,757

14.7

Other income

123.4

40.4

27.2

Total income

3,345

3,349

(0.1)

2,909

15.0

6,695

5,831

14.8

Gross profit

1,811

1,813

(0.1)

1,598

13.4

3,624

3,111

16.5

Gross margins

55.2

54.6

55.8

54.9

54.0

1.6

Operating profit

722

725

(0.3)

618

16.8

1,447

1,260

14.8

OPM (%)

22.0

21.8

21.6

21.9

Interest

293.0

290.9

103

157.1

Dep & amortisation

4.1

3.2

182

181

0.5

PBT

613

644

(4.9)

554

10.6

1,256

1,113

12.9

Provision for taxation

162

187

(13.0)

140

15.5

349

287

21.5

Net profit

450

457

(1.5)

413

9.0

908

826

9.9

Less : Exceptional items (gains)/loss

(1)

(43.9)

MI & share in associates

PAT after Exceptional items

452

432

4.5

372

21.4

884

788

12.3

Adjusted PAT

451

0.0

383

17.5

900

820

9.8

EPS (`)

15.5

13.2

30.9

28.2

Source: Company, Angel Research

Exhibit 2: Actual v/s Estimate

(` cr)

Actual

Estimate

Variation %

Net sales

3280

3320

(1.2)

Other operating income

65.0

123.4

Operating profit

722

725

(0.3)

Tax

162

176

(7.7)

Adj. Net profit

451

478

(5.6)

Source: Company, Angel Research

Revenue up 14.6% yoy; marginally lower than our expectation: For 2QFY2016,

APL posted a decent set of results. The company posted a sale of `3,280cr (v/s

`3,320cr expected), a growth of 14.6% yoy. Sales were driven by formulations

(which constitute around 79.5% of sales), which grew by 19.9% yoy. The key

formulation segments like US, Europe & ROW, and ARV posted a yoy growth of

25.8%, 1.0% and 95.0% respectively. The API, on the other hand, grew by

0.9% yoy.

In the formulation segment, the US (`1,478cr) posted a yoy growth of 25.8%,

while Europe & ROW (`932cr) posted a yoy growth of 1.0%. ARV (`271cr) posted

a yoy growth of 95.0%. In the API segment, the Non-Betalactum segment

registered a growth of 12.2% yoy. The SSPs segment de-grew by 7.9% yoy while

the Cephs segment posted a de-growth of 2.3% yoy.

Overall, formulations now contribute around 79.5% of sales, while APIs contribute

the balance around 20.5% of sales. As of end-Sept 2015, the company has

214 approved ANDAs including 28 tentative approvals. During 2QFY2016, 3

ANDAs were filed, taking the cumulative filing to 382.

November 18, 2015

Aurobindo Pharma | 2QFY2016 Result Update

Exhibit 3: Sales break-up (Consolidated)

(` cr)

2QFY2016

1QFY2016

% chg (qoq) 2QFY2015

% chg (yoy)

1HFY2016

1HFY2015

% chg

Formulations

2681

2637

1.6

2237

19.9

5318

4512

17.8

1478

1430

3.4

1174

25.8

2907

2290

26.9

Europe & ROW

932

912

2.2

923

1.0

1845

1859

(0.8)

ARV

271

295

(8.3)

139

95.0

566

363

55.9

API

691

723

(4.4)

685

0.9

1414

1355

4.3

SSP

198

217

(8.5)

215

(7.9)

415

454

(8.6)

Cephs

229

261

(12.2)

235

(2.3)

491

447

9.8

NPNC

264

245

7.5

235

12.2

509

455

11.8

Source: Company, Angel Research

OPM expands to 22.0%, but better than expected: The OPM for the quarter stood

at 22.0% (V/s 21.8% expected), a yoy expansion of 42bp. The gross margin came

in at 55.2% V/s 55.8% in 2QFY2015; however, on back of employee costs

(+11.6% yoy) and other expenses (+11.0% yoy), the operating margin underwent

an expansion.

Exhibit 4: OPM Trend

23.0

21.8

22.0

21.6

21.0

20.0

20.3

19.0

18.0

18.7

17.0

16.0

15.0

2QFY2015

3QFY2015

4QFY2015

1QFY2016

2QFY2016

Source: Company, Angel Research

Net profit marginally lower than estimate: On the reported net profit front, the

company posted a net profit of `452cr, a yoy growth of 21.4%. The Adj. Net profit

came in at `451cr V/s `383cr in 2QFY2015, a yoy growth of 17.5%.

November 18, 2015

Aurobindo Pharma | 2QFY2016 Result Update

Exhibit 5: Adj. net profit

460

451

440

420

403

399

400

383

380

360

340

2QFY2015

3QFY2015

4QFY2015

1QFY2016

2QFY2016

Source: Company, Angel Research

Management takeaways

 As of 2QFY2016 the company has filed 382 ANDAs, with 214 final approvals,

and 28 tentative approvals.

 The company has guided for launch of 30-35 launches in the US over the next

6-12 months.

 The Management guided for a capex of `1,100cr in FY2016E.

Recommendation rationale

 US and ARV formulation segments - the key drivers for base business: APL’s

business would primarily be driven by the US and ARV segments on the

formulation front. The company has been an aggressive filer in the US market

with 382 ANDAs filed until 2QFY2016. Amongst peers, APL has emerged as

one of the top ANDA filers. The company has aggressively filed ANDAs in the

last few years and is now geared to reap benefits, even though most of the

filings are for highly competitive products. Going ahead, with US$70bn going

off-patent in the US over the next three years, we believe APL is well placed to

tap this opportunity and is one of the largest generic suppliers. The company

enjoys high market share as it is fully integrated in all its products apart from

having a larger product basket. Also, the company plans to launch

injectables in the next 2 years, which drive its growth and profitability. The US

revenue has grown at a CAGR of 31% over FY2009-2015 to `4,832cr. Going

forward, the US business of the company is expected to post a CAGR of 25%

over FY2015-17E.

 Acquisitions to augment growth and improve sales mix: APL announced the

signing of a binding offer to acquire commercial operations in seven Western

European countries from Actavis. The net sales for the acquired businesses

were around EUR320mn in 2013 with a growth rate of over 10% yoy. With

this, the European sales of the company would now be ~EUR400mn.

Although these businesses are currently loss-making (by around EUR20mn),

APL expects them to return to profitability in combination with its vertically

integrated platform and existing commercial infrastructure.

November 18, 2015

Aurobindo Pharma | 2QFY2016 Result Update

The acquisition will make APL one of the leading Indian pharmaceutical

companies in Europe with a position in the top 10 in several key markets,

which it plans to leverage to supply or widen its product portfolio through

introduction of its own products, especially high margin products like

injectiables.

Also, in December 2014, Aurobindo USA, spent US$132.5mn to acquire the

assets of Natrol with an agreement to take on certain liabilities. With this

acquisition, the company gets an entry into the nutraceutical markets.

Aurobindo USA believes that Natrol is an excellent strategic fit and provides

the right platform for creating a fully-integrated OTC platform in the USA and

in other international markets. Natrol, which manufactures and sells nutritional

supplements in USA and other international market, provides Aurobindo with-

strong brand reputation and presence in a variety of attractive supplement

markets. Natrol has a proven performance in the mass market, health food

and specialty channels, and has existing long term relationships with key

distribution and retail partners. It addresses a broad range of consumers and

has an effective growth strategy to expand market penetration.

With these acquisitions, the overall contribution of formulation sales in APL

sales mix have risen to ~78% in FY2015.

Outlook and valuation

We estimate the company’s net sales to log a 12.5% CAGR over FY2015-17E to

`17,162cr on the back of US and ARV formulation contracts, which will be

supplemented through the recent acquisitions of the Western European formulation

businesses of Actavis and US’ Natrol. This has also led APL to become a

>~US$2bn sales company, with ~ 80% of sales being accounted by formulations.

We maintain a accumulate on the stock.

Exhibit 6: Key assumptions

FY2016E

FY2017E

Sales Growth (%)

23.9

15.0

Operating Margins (%)

22.0

23.0

Capex (` cr)

1100

800

Source: Company, Angel Research

November 18, 2015

Aurobindo Pharma | 2QFY2016 Result Update

Exhibit 7: One-year forward PE

800

700

600

500

400

300

200

100

10x

15x

20x

Source: Company, Angel Research

Exhibit 8: Recommendation summary

Company

Reco

CMP Tgt. price Upside

FY2017E

FY15-17E

FY2017E

(`)

% PE (x) EV/Sales (x) EV/EBITDA (x) CAGR in EPS (%) RoCE (%) RoE (%)

Alembic Pharma

Neutral

662

27.7

3.9

19.5

26.1

30.3

30.2

Aurobindo Pharma Accumulate

830

872

5.1

19.4

3.1

13.4

15.6

23.5

30.2

Cadila Healthcare

Neutral

413

23.5

3.5

16.1

24.6

25.2

29.0

Cipla

Neutral

619

21.4

2.9

15.3

21.4

17.1

16.8

Dr Reddy's

Buy

3,384

3,933

16.2

18.9

2.8

14.7

17.2

19.1

20.6

Dishman Pharma

Neutral

381

17.6

1.7

8.2

20.4

11.7

GSK Pharma*

Neutral

3,152

46.2

8.0

36.4

6.6

33.7

34.3

Indoco Remedies

Neutral

300

22.1

2.4

13.1

23.0

19.7

Ipca labs

Buy

719

900

25.1

25.7

2.6

13.7

17.9

11.8

14.0

Lupin

Neutral

1,777

26.0

4.5

16.6

13.1

29.6

24.7

Sanofi India*

Neutral

4,586

30.3

4.0

19.0

33.1

27.9

25.5

Sun Pharma

Buy

742

950

28.1

27.6

4.8

15.6

8.4

15.8

16.6

Source: Company, Angel Research; Note: *December year ending,

November 18, 2015

Aurobindo Pharma | 2QFY2016 Result Update

Profit & loss statement (Consolidated)

Y/E March (` cr)

FY2012

FY2013

FY2014

FY2015

FY2016E

FY2017E

Gross sales

4,619

5,863

8,198

12,221

15,150

17,423

Less: Excise duty

159

178

227

261

Net Sales

4,551

5,783

8,038

12,043

14,923

17,162

Other operating income

Total operating income

4,627

5,855

8,100

12,121

15,000

17,239

% chg

5.6

26.5

38.3

49.6

23.8

14.9

Total Expenditure

4,017

4,966

5,968

9,557

11,645

13,221

Net Raw Materials

2,520

2,792

3,606

5,506

5,969

6,865

Other Mfg costs

475

578

804

1,204

1,492

1,716

Personnel

536

663

832

1,302

1,498

1,722

Other

487

932

726

1,545

2,686

2,917

EBITDA

533

817

2,071

2,486

3,278

3,941

% chg

(24.3)

53.2

153.5

20.1

31.8

20.2

(% of Net Sales)

11.7

14.1

25.8

20.6

22.0

23.0

Depreciation& Amortisation

201

249

313

333

465

532

EBIT

409

568

1,758

2,154

2,813

3,409

% chg

(23.2)

38.8

209.5

22.5

30.6

21.2

(% of Net Sales)

9.0

9.8

21.9

17.9

18.8

19.9

Interest & other Charges

103

131

108

197

240

Other Income

(% of PBT)

7.5

5.3

1.3

3.6

2.9

2.4

Share in profit of Associates

Recurring PBT

331

538

1,735

2,227

2,773

3,327

% chg

(55.9)

62.3

222.7

28.4

24.5

20.0

Extraordinary Expense/(Inc.)

544.5

163.4

203.1

59.6

PBT (reported)

(213)

374

1,532

2,168

2,773

3,327

Tax

(88.8)

82.7

363.5

596.6

693.4

831.9

(% of PBT)

41.6

22.1

23.7

27.5

25.0

PAT (reported)

(125)

291

1,168

1,571

2,080

2,496

Less: Minority interest (MI)

(1)

(2)

(4)

(5)

(4)

(3)

PAT after MI (reported)

(124)

294

1,172

1,576

2,084

2,498

ADJ. PAT

198

432

1,333

1,619

2,084

2,498

% chg

(62.4)

118.5

208.6

21.5

28.7

19.9

(% of Net Sales)

(2.7)

5.1

14.6

13.1

14.0

14.6

Basic EPS (`)

6.8

14.8

45.8

55.4

35.7

42.8

% chg

(62.4)

118.5

208.6

21.1

(35.6)

19.9

November 18, 2015

Aurobindo Pharma | 2QFY2016 Result Update

Balance sheet (Consolidated)

Y/E March (` cr)

FY2012

FY2013

FY2014

FY2015

FY2016E

FY2017E

SOURCES OF FUNDS

Equity Share Capital

Share Application Money

Reserves & Surplus

2,311

2,577

3,721

5,127

7,040

9,367

Shareholders Funds

2,340

2,606

3,750

5,156

7,098

9,426

Minority Interest

Long-term provisions

Total Loans

3,096

3,384

3,769

3,864

6,000

6,001

Deferred Tax Liability

205

211

Total Liabilities

5,452

6,069

7,760

9,280

13,331

15,656

APPLICATION OF FUNDS

Gross Block

3,032

3,316

4,107

6,095

7,195

7,995

Less: Acc. Depreciation

892

1,140

1,461

1,794

2,259

2,791

Net Block

2,141

2,175

2,645

3,752

4,936

5,205

Capital Work-in-Progress

645

310

Goodwill

Investments

Long-term loans and adv.

108

243

789

486

Current Assets

3,248

4,128

5,631

8,279

10,612

13,133

Cash

208

179

469

498

1,502

Loans & Advances

315

332

789

692

857

985

Other

2,863

3,587

4,664

7,118

9,257

10,645

Current liabilities

784

1,200

1,730

3,634

3,096

3,560

Net Current Assets

2,465

2,928

3,901

4,645

7,516

9,572

Mis. Exp. not written off

Total Assets

5,452

6,069

7,760

9,280

13,331

15,656

November 18, 2015

Aurobindo Pharma | 2QFY2016 Result Update

Cash flow statement (Consolidated)

Y/E March (` cr)

FY2012

FY2013

FY2014

FY2015

FY2016E FY2017E

Profit before tax

(213)

374

1,532

2,168

2,773

3,327

Depreciation

201

249

313

333

465

532

(Inc)/Dec in Working Capital

(796)

(191)

(457)

(757)

(2,842)

(1,053)

Less: Other income

Direct taxes paid

(83)

(363)

(597)

(693)

(832)

Cash Flow from Operations

(745)

321

1,001

1,066

(378)

1,894

(Inc.)/Dec.in Fixed Assets

(633)

(283)

(455)

(1,989)

(1,100)

(800)

(Inc.)/Dec. in Investments

(16)

(2)

Other income

Cash Flow from Investing

(608)

(271)

(435)

(1,908)

(1,019)

(719)

Issue of Equity

Inc./(Dec.) in loans

1,340

288

385

2,136

Dividend Paid (Incl. Tax)

(34)

(17)

(102)

(171)

Others

(70)

(183)

(879)

1,209

(540)

(1)

Cash Flow from Financing

1,236

(596)

1,133

1,426

(171)

Inc./(Dec.) in Cash

(117)

138

(30)

291

1,004

Opening Cash balances

188

208

179

469

498

Closing Cash balances

208

179

469

498

1,502

November 18, 2015

Aurobindo Pharma | 2QFY2016 Result Update

Key ratios

Y/E March

FY2012

FY2013

FY2014

FY2015

FY2016E

FY2017E

Valuation Ratio (x)

P/E (on FDEPS)

122.2

55.9

18.1

15.0

23.3

19.4

P/CEPS

315.1

44.5

16.3

12.7

19.0

16.0

P/BV

10.3

9.3

6.4

4.7

6.8

5.1

Dividend yield (%)

0.1

EV/Sales

6.0

4.7

3.5

2.3

3.6

3.1

EV/EBITDA

51.0

33.5

13.4

11.1

16.5

13.4

EV / Total Assets

5.0

4.5

3.6

3.0

4.0

3.4

Per Share Data (`)

EPS (Basic)

6.8

14.8

45.8

55.4

35.7

42.8

EPS (fully diluted)

6.8

14.8

45.8

55.4

35.7

42.8

Cash EPS

2.6

18.6

51.0

65.4

43.6

51.9

DPS

1.0

0.5

Book Value

80.4

89.5

128.8

176.6

121.5

161.4

Dupont Analysis

EBIT margin

9.0

9.8

21.9

17.9

18.8

19.9

Tax retention ratio

58.4

77.9

76.3

72.5

75.0

Asset turnover (x)

1.0

1.2

1.5

1.4

1.3

ROIC (Post-tax)

5.1

8.0

20.1

19.2

19.6

19.0

Cost of Debt (Post Tax)

2.5

3.2

2.3

1.6

3.0

Leverage (x)

1.0

1.3

1.1

0.8

0.7

0.6

Operating ROE

7.6

14.0

39.5

33.4

31.5

29.1

Returns (%)

ROCE (Pre-tax)

8.4

9.9

25.4

25.3

24.9

23.5

Angel ROIC (Pre-tax)

ROE

8.3

17.5

41.9

36.4

34.0

30.2

Turnover ratios (x)

Asset Turnover (Gross Block)

1.7

1.8

2.2

2.4

2.3

Inventory / Sales (days)

100

Receivables (days)

115

129

Payables (days)

237

114

WC cycle (ex-cash) (days)

158

159

145

119

136

160

Solvency ratios (x)

Net debt to equity

1.3

1.2

1.0

0.7

0.8

0.5

Net debt to EBITDA

5.7

3.9

1.7

1.4

1.7

1.1

Interest Coverage (EBIT / Int.)

4.0

4.3

16.3

25.5

14.3

14.2

November 18, 2015

Aurobindo Pharma | 2QFY2016 Result Update

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

DISCLAIMER

Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,

Bombay Stock Exchange Limited and Metropolitan Stock Exchange of India Limited. It is also registered as a Depository Participant with

CDSL and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is

a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number

INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing

/dealing in securities Market. Angel or its associates including its relatives/analyst do not hold any financial interest/beneficial

ownership of more than 1% in the company covered by Analyst. Angel or its associates/analyst has not received any compensation /

managed or co-managed public offering of securities of the company covered by Analyst during the past twelve months. Angel/analyst

has not served as an officer, director or employee of company covered by Analyst and has not been engaged in market making activity

of the company covered by Analyst.

This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment

decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should

make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the

companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine

the merits and risks of such an investment.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and

trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's

fundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other reliable

sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this

document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way

responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.

Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot

testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.

While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be

regulatory, compliance, or other reasons that prevent us from doing so.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,

redistributed or passed on, directly or indirectly.

Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from

or in connection with the use of this information.

Note: Please refer to the important ‘Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the

latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may

have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement

Aurobindo Pharma

1. Analyst ownership of the stock

2. Angel and its Group companies ownership of the stock

3. Angel and its Group companies' Directors ownership of the stock

4. Broking relationship with company covered

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Based on expected returns

Buy (> 15%)

Accumulate (5% to 15%)

Neutral (-5 to 5%)

over 12 months investment period):

Reduce (-5% to -15%)

Sell (< -15)

November 18, 2015