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Alembic Pharma’s revenue missed our estimate (-4.8%) due to decline in API segment and moderate growth in India and US. However, EBITDA was in-line and Adj. PAT was largely in-line (+2.5%) with our estimate.
Continuous EBITDA deterioration due to low PVC Prices, and higher PEx multiples are not sustainable. Therefore, we retain our HOLD rating with TP Rs 1,800/share.