Aurobindo Pharma Shares Dip Over 3% After Fire at Andhra Facility

Aurobindo Pharma shares were trading at ₹1,226.80 at 11:30 AM on the NSE, down ₹20.40 or 1.64% from the previous close of ₹1,247.20. The stock opened lower at ₹1,238.40 and touched an intraday high of ₹1,244.10, while slipping to a low of ₹1,203.40

Aurobindo Pharma Faces Minor Setback After Fire Incident

According to the company, the fire broke out on April 27 around 10:00 PM, affecting equipment in the coal crusher area of the site. Fortunately, there were no injuries reported, and the core manufacturing infrastructure remains intact.

“The incident caused damage to certain ancillary equipment, but it is not expected to materially impact the group’s operations or financials,” the company stated in a press release dated April 28.

Operations Temporarily Halted

As a precautionary measure, Aurobindo Pharma has temporarily paused operations at the affected plant. The shutdown is expected to last approximately 20 to 25 days to allow for equipment replacement and safety checks. The company also confirmed that the facility is fully insured.

“We are committed to resuming full operations swiftly, while maintaining the highest safety and quality standards,” the company added.

Stock Performance Snapshot

Despite the recent dip in Aurobindo Pharma’s share price, the company’s long-term performance reflects strong resilience. Over the past month, the stock has gained 4%, showcasing short-term momentum.

However, on a year-to-date (YTD) basis, it has declined by 10%, largely due to intermittent operational challenges. Looking at a broader horizon, the stock has delivered a modest 5% return over the past year and an impressive 92% gain over the last three years.

Read More: SEBI Mandates Brokers to Collect Margins by T+1 Settlement Cycle.

Conclusion

While the fire incident at Aurobindo Pharma’s Andhra Pradesh facility caused a temporary setback, the company’s swift action and assurance of minimal financial impact have helped maintain investor confidence. Its strong long-term stock performance highlights the company’s resilience and operational strength.

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