Buy Alembic Pharma; target of Rs 1180: YES Securities

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26 Aug, 2025 12:21

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YES Securities' research report on Alembic Pharma

Strong beat in revenues driven by US at US$79mn as sartans continue to remain stable opportunity; not much from Azithromycin Margin came in better than expected at 30% as R&D spend lower at Rs1.4bn vs Rs1.8bn in Q4 FY20; gross margin came off due to lower India and higher API revenues QIP to fund complex generics and 505b2 opportunities as also to repay debt; funding for less capex intensive but longer gestation programs We retain 25x PE and believe any further PE rerating is not warranted given that gap with Torrent would be largely closed at our target multiple;

Outlook

Retain BUY with a revised PT of Rs1,180 as we tweak FY21/22 estimates. Any meaningful extension of sartans opportunity well beyond H1 FY21 would be a key risks to our estimates/reco.

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