Please refer to important disclosures at the end of this report
1
Alembic Pharmaceuticals Limited (APL) is a leading pharmaceutical company in
India. The company is vertically integrated to develop pharmaceutical substances
and intermediates. The company has spent ~`600crore in FY16 mainly to
develop the new Sikkim facility. Also, it has guided a sharp increase in cape
x
(~`1000crore in two years) for setting up injectables and oral solid oncolog
y
facilities, API capacity ramp-up and to set up a plant under the Derma J
V
(orbicular). With the announcement of aggressive R&D and capex plans, the
management has signalled the strategy for the next five to six years, especially on
the US front. This includes a foray into niche areas like oncology, injectables,
derma, etc. The company has received three approvals in the quarter, which
takes the cumulative approvals to 52. This includes six tentative approvals. It
plans to launch three to four products in Q4FY17. The company has launched
26 own products so far including relaunch of partner products. The Compan
y
has reduced debt and is virtually debt free. The company has a healthy profit
growth of 53% CAGR over the last 5 years and return on equity (ROE) of 48% fo
r
the last 3 years. Hence Buy.
BUY
CMP `603
Stock Info
Sector
Beta
Bloomberg Code
Shareholding Pattern (%)
Promoters 72.7
MF / Banks / Indian Fls 4.0
FII / NRIs / OCBs 11.0
Indian Public / Others 12.3
Abs. (%) 3m 1yr 3yr
Sensex 8.2 16.7 32.0
Alembic Pharma (5.6) (4.3) 115.2
0.3
Reuters Code ALEM.BO
ALPM@IN
2
BSE Sensex 28,929
Nifty 8,927
Face Value (
`
)
Pharmaceuticals
Market Cap (
`
cr) 11,358
52 Week High / Low 700/516
Avg. Daily Volume 16,064
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
A
lembic Pharmaceuticals
Others | Pharmaceuticals
March 10, 2017
Alembic Pharmaceuticals | Pharmaceuticals
March 10, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Alembic Pharmaceuticals
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
p
eriod
)
: Reduce
-5% to -15%
)
Sell
(
< -15
)