Aurobindo Pharma Surges: Government's MIP Decision Boosts Share Price

• Aurobindo Pharma shares rallied significantly after the government imposed a Minimum Import Price (MIP) on Penicillin G, Amoxicillin, and 6-APA for one year.
• The MIP aims to curb cheap imports, enhancing Aurobindo Pharma's pricing power and margins, with experts forecasting a potential ₹600-700 crore EBITDA upgrade by FY27.
• New MIP rates are ₹2,216/kg for Penicillin G, ₹2,733/kg for Amoxicillin, and ₹3,405/kg for 6-APA.
• Aurobindo Pharma is India's sole Pen-G plant operator, with an annual capacity of 15,000 tons, exceeding India's 9,000-ton annual requirement.
• The stock traded at ₹1201, up 4.35%, with a market cap of ₹69,794 crore, showing strong long-term growth of 188.87% over three years.

Why It Matters: Government's Minimum Import Price on key antibiotics significantly boosts Aurobindo Pharma's share price and outlook.