My Application Form Status

Check the status of your application form with Angel Broking.
  • Companies
  • Everything else
Search

Alembic Pharmaceuticals Ltd Research Report - 02nd Feb 2016

Pharmaceutical | Published on Feb 02nd 2016

IT

Alembic Pharmaceuticals (Alembic Pharma) posted better-than-expected results for 3QFY2016. It posted an 81.8% yoy growth in sales for the quarter to Rs921cr V/s Rs507cr in 3QFY2015 (and V/s an expected Rs700cr). Sales growth was mainly driven by the international business, which posted a 248% yoy growth, while the Indian branded formulation business posted a 15% yoy growth. Consequently, on the operating front, the EBITDA margin came in at 41.7% V/s 20.1% in 3QFY2015 (and V/s an expected 27.5%). The same was aided by gross margin expansion, which came in at 77.6% V/s 65.6% in 3QFY2015. The R&D expenditure during the quarter was 7.6% of sales V/s 6.0% of sales in 3QFY2015. Thus, the PAT came in at Rs269cr V/s Rs71cr in 3QFY2015 (and V/s an expected Rs160cr), a yoy growth of 281.4%. We maintain our Neutral rating on the stock considering fuller valuations. Results better than expectations: Alembic Pharma posted better-than-expected results for 3QFY2016. It posted an 81.8% yoy growth in sales for the quarter to Rs921cr V/s Rs507cr in 3QFY2015 (and V/s an expected Rs700cr). Sales growth was mainly driven by the international business, which posted a 248% yoy growth, while the Indian branded formulation business posted a 15% yoy growth. Consequently, on the operating front, the EBITDA margin came in at 41.7% V/s 20.1% in 3QFY2015 (and V/s an expected 27.5%). The same was aided by gross margin expansion, which came in at 77.6% V/s 65.6% in 3QFY2015. The R&D expenditure during the quarter was 7.6% of sales V/s 6.0% of sales in 3QFY2015. Thus, the PAT came in at Rs269cr V/s Rs71cr in 3QFY2015 (and V/s an expected Rs160cr), a yoy growth of 281.4%. Outlook and valuation: Alembic Pharma’s growth and profitability profile has improved post the restructuring carried out by the Management. Over FY2015-17E, we expect the company to post a CAGR of 36.1% and 38.2% in sales and net profit, respectively. We recommend a Neutral rating on the stock.

Download Full Report

Accumulate

CMP 618
Target Price
Investment Period12 Months

Stock Info

MCAP BSE (Rs in Cr)12,047.98
MCAP NSE (Rs in Cr)12,072.48
P/E (x)20.61
EPS (Rs.)31.00
BV (Rs.)88.59
Div Yield (%)0.63
FV (Rs.)2.00
P/BV (x)7.02
EV/Sales (x)3.75
EV/EBITDA (x)12.96

Shareholding Pattern (%)

Promoter74.0
Foreign11.0
Public & Others11.0
Institution3.0
Corporate1.0
Grand Total100.0

Trade Securely

AngelEye

Portfolio Tracking & Trading Application View Demo