Aurobindo Pharma took a severe battering in today’s trading, as all these Hyderabad-based entities are now under CBI scanner. All are Hyderabad based listed entities now under CBI scanner.
These stocks in particular were apparently reacting to the recent investigations initiated by the CBI into companies owned or promoted by Mr Y.S. Jagan Mohan Reddy, Member of Parliament, and president of YSR Congress Party and son of late Chief Minister of Andhra Pradesh, Rajasekhara Reddy.
Following the Andhra Pradesh High Court directive, the CBI, is investigating into issues relating to transactions of corporates with which Mr Reddy and his firms, and the investments they had made to secure land to set up special economic zones, etc.
Aurobindo Pharma closed at Rs 125.15 (down Rs 11.95), against previous close of Rs.137The scrip has been underperforming last 6 months and likely to fall sub 100 levels
Our Recommendation :
The fundamentals of the company appear strong and the scrip is likely to go below Rs.100 mark giving an excellent opportunity for long term investors to buy and add to their portfolio.
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