Hold Alembic Pharma; target Rs 181: Nirmal Bang
Brokerage house Nirmal Bang has recommended hold rating on Alembic Pharmaceuticals with a price target of Rs 181 in its August 13, 2013 research report.
August 22, 2013 / 19:18 IST
Nirmal Bang's report on Alembic Pharmaceuticals
"Alembic Pharmaceuticals reported sales growth of 16.6 percent yoy to Rs 426.4 cr, which was marginally higher than expectation, though EBITDA and PAT were in-line. However, we fell the company is on track of achieving its 20 percent sales target for the year. The management has maintained its outlook of overall 20 percent growth escorted by 30-35 percent in international generics, 15 percent in domestic formulations and 10 percent in API. Management has also maintained 100-125 bps improvement in EBITDA margins going forward. Considering the improving margins with steady growth and recent re-rating of the stock, We recommend investors to HOLD on the stock and BUY on declines with price target of Rs 181 (13x of FY15E EPS), an upside of 12.5 percent from current levels," says Nirmal Bang research report.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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