Buy Alembic Pharma; target of Rs 756; KRChoksey

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26 Aug, 2025 12:21

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KRChoksey’s report on Alembic PharmaAlembic Pharma’s result was above our estimates. Revenues grew by 84.4% YoY to INR 10088mn mainly driven by strong growth of 342% YoY in international generics business on back of exceptional growth posted due to generic Abilify launch. EBITDA grew by 247% YoY to INR 3760mn. EBITDA margin stood at 37.3% expanded by 1750bps YoY supported by Abilify launch. Reported PAT stood at INR 2889mn up by 273.9% YoY due to higher operating performance. EPS for the quarter stood at INR 15.3.Valuation:With a) continuous focus on specialty segment in domestic business b) strong momentum in International generics business on account of niche filings; we believe growth outlook to remain strong in long term. We expect revenues to show 26% CAGR over FY15-18E and earnings to show 32% CAGR over FY15-18E on account of strong operating performance and lower interest cost burden. Revenue & profit momentum along with impressive return ratios offer scope for valuation to re- rate. At CMP of INR 664, the stock is trading at 22.3x FY17E EPS and 19.3x FY18E EPS. We have introduced FY18 estimates and roll our target price on FY18 earnings & upgrade our rating from ‘HOLD’ to ‘ACCUMULATE’ based on potential upside with the revised target price of INR 756 at 22xFY18E, says KRChoksey research report.For all recommendations, 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.

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