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Last Updated : Jul 31, 2019 04:18 PM IST | Source:

Hold Alembic Pharma; target of Rs 540: ICICI Direct

ICICI Direct recommended hold rating on Alembic Pharma with a target price of Rs 540 in its research report dated July 30, 2019.

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ICICI Direct's research report on Alembic Pharma

Revenues grew 10% YoY to Rs 949 crore (I-direct estimate: Rs 980 crore) due to 53% YoY growth in US to Rs 345 crore (I-direct estimate: Rs 317 crore). Domestic formulations declined 2.1% to Rs 324 crore (I-direct estimate: Rs 374 crore). EBITDA margins improved 620 bps YoY to 23.7% (I-direct estimate: 19.0%) mainly due improvement in gross margins (78.5% vs. 70.4% in Q1FY19). EBITDA grew 49% YoY to Rs 224.9 crore vis-à-vis I-direct estimate of Rs 186.2 crore. Net profit grew 27.4% YoY to Rs 115.2 crore (I-direct estimate of Rs 119.3 crore) mainly due to a strong operational performance.


The benefits are most likely to be back-loaded. Immediate cash burn is likely to weigh on sentiments in the near term. Our target price arrives at Rs 540 based on 22x FY21E EPS of Rs 25.4.

For all recommendations report, click here

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First Published on Jul 31, 2019 04:18 pm
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