Motilal Oswal's research report on Alembic Pharma
Alembic Pharma (ALPM) delivered a largely in-line performance for 1QFY26. Superior execution in the export market led to YoY growth in revenue/EBITDA/PAT for the quarter. This benefit was offset, to some extent, by a muted show in the domestic formulation (DF) and API segments. ALPM sustained its growth momentum in the US market on the back of new launches. Notably, upcoming introductions such as g-Entresto have the potential to further strengthen growth in the US generics segment. That said, a broader scope of business would be necessary to enhance capacity utilization and, in turn, improve the profitability of the US generics segment.
Outlook
We tweak our estimates for FY26/FY27 (+3%/+2%), factoring in: a) improved business prospects in the exports market and b) near-term disruption in the DF segment. We value ALPM 22x 12M forward earnings to arrive at a TP of INR990.
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