November 04, 2016 / 17:54 IST
Alembic pharmaceuticals Ltd. (APL) is the Indian pharmaceutical major head quartered in vadodara (Gujarat). The Company is vertically integrated with the ability to develop, manufacture and market pharmaceutical products, pharmaceutical substances and Intermediates. APL is one of the old pharmaceutical companies in India, incorporated in 1907. The company has strong domestic presence in the formulation business. The company has strong formulation business in domestic and international market.
At CMP of Rs 674, APL is trading at 17.7x its FY16 EPS of Rs 38.0 which is at an attractive valuation. With 14% sales CAGR, strong margin improvement and strong return ratios, We expect stock to trade at 18.2x its FY17E EPS of Rs 44.4. We assign a BUY rating on the stock with a price target of Rs 808 in next 12 months which is more than 20% upside from current levels.
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