Moneycontrol PRO

Hold Alembic Pharmaceuticals; target of Rs 758: KR Choksey

KR Choksey recommended hold rating on Alembic Pharmaceuticals with a target price of Rs 758 in its research report date May 05, 2022.

May 05, 2022 / 09:31 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

KR Choksey's research report on Alembic Pharmaceuticals


Alembic Pharma reported 10.6% YoY (+11.3% QoQ) rise in total operating revenue to INR 14.16 bn in Q4FY22, as US revenue grew at 17.3% YoY (+41.7% QoQ), breaking the consecutive quarterly declining trend in the segment that ensued since Q3FY21. The company witnessed 1,538 bps YoY (-880 bps QoQ) fall in EBITDA margin to 11.3% in Q4FY22, due to one-time costs associated with acquisition of Aleor Dermaceuticals. The reported PAT declined 85.9% YoY (-79.9% QoQ) to INR 355 mn for the quarter. Without the Aleor related onetime expenses, the company would have posted a 28.0% YoY decline (+2.3% QoQ) in net income to INR 1,805 mn in Q4FY22. The company launched 1 product in Q4FY22 and 13 in FY22, in the US.


Outlook


The company’s shares have been flat since our last earnings update in Feb 22 and are currently trading at 21.0x/16.1x/14.8x its FY23E/FY24E/FY25E EPS estimates, respectively. Using DCF method and applying 16.4x valuation multiple on FY24E EPS of INR 45.5 (earlier INR 47.4), we arrive at the same target price (TP) of INR 758/share. Since the TP indicate a potential 3.0% upside from its CMP of INR 734, we maintain our “HOLD” recommendation on the shares of Alembic Pharma.


For all recommendations report, click here

Close

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.

Broker Research
first published: May 5, 2022 09:31 pm
Sections
ISO 27001 - BSI Assurance Mark