Alembic Pharmaceuticals Ltd, incorporated in the year 2010, is a Mid Cap company with a market cap of Rs 19037.14 Crore, operating in Pharmaceuticals sector.
Alembic Pharmaceuticals’ key Products/Revenue Segments include Pharmaceuticals, Export Incentives, Royalty Income and Other Operating Revenue for the year ending 31-Mar-2019.
Investment Rationale
Motilal Oswal tweaked the company’s earnings estimates for FY22/FY23, factoring in:
- Ongoing price erosion in the US base business
- Gradual improvement in the DF outlook on account of the extended impact of COVID
- The deferment of commercialization at newer facilities (due to COVID-related delay in USFDA inspections)
- Lower expensing of operational cost related to injectables facilities.
Motilal Oswal expects steady earnings over FY21–23 on the high base of FY21. It values Alembic Pharma at 19x 12 months forward earnings to arrive at the target price of Rs 1,070.
Financials
For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 1284.34 Crore, down 2.47 per cent from last quarter’s Total Income of Rs 1316.86 Crore and up 6.34 per cent from last year same quarter’s Total Income of Rs 1207.72 Crore. Company has reported a net profit after tax of Rs 237.40 Crore in the latest quarter.
Promoter/FII Holdings
Promoters held 69.8 per cent stake in the company as of Dec 30, 2020, while FIIs held 7 per cent, DIIs 10.1 per cent and public and others 13.1 per cent.
