We initiate coverage on Aurobindo as a core BUY with a Price Objective of Rs 1247 over a period of 15-18 months. At CMP of Rs 916.3, the stock is trading at 7.1x and 4.9x its estimated earnings for FY2011E & FY2012E representing a potential upside of ~36.1%. Having established a strong foothold in the bulk drug market, the company is concentrating on the formulations business which is expected to emerge as the mainstay going forward. The Pfizer deal besides offering long term revenue visibility also provides opportunities for similar deals with other multinational companies. In addition commissioning of the high volume SEZ facility is expected to drive revenue growth and profitability, post CY2010.