Limited Period Offer:Be a PRO for 1 month @Rs49/-Multiple payment options available. Know More
you are here: HomeNewsBusiness

Hold Alembic Pharma; target of Rs 1055: ICICI Direct

ICICI Direct recommended hold rating on Alembic Pharma with a target price of Rs 1055 in its research report dated January 20, 2021.

January 28, 2021 / 03:01 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Alembic Pharma


Q3 results were a mixed bag. While operational performance was below Idirect estimates amid lower than expected International (mainly US) and API sales, net profit was higher due to higher-than-expected profit contribution from Rhizen Phama (one-off). Revenues grew 8.7% YoY to Rs 1314 crore led by strong growth in domestic, ROW formulations and API segment. US sales growth remained muted (down 0.6% YoY) at Rs 512 crore due to competition in Sartans. Domestic formulations grew 13.6% YoY to Rs 418 crore. EBITDA margins expanded 89 bps YoY to 27.8% due to better gross margins and lower R&D cost. Subsequently, EBITDA grew 12.3% YoY to Rs 365 crore. Net Profit grew 24.9% YoY to Rs 293 crore.


Outlook


We change from BUY to HOLD rating and arrive at a target price of Rs 1055 (vs. Rs 1170 earlier) based on 20x FY23E EPS of Rs 52.7.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Jan 28, 2021 03:01 pm

stay updated

Get Daily News on your Browser
Sections