Alembic Pharmaceuticals Ltd. share price target

Revenue/EBITDA/ PAT grew 6.7%/8% and 19% above our estimates. EBITDA margin reported 20bps above estimates of 15.4% in 4QFY25

Alembic Pharma (ALPM) delivered a better-than-expected performance in 4QFY25. A strong performance in export markets was offset partly by a muted show in domestic formulation (DF) segment.

US and ROW sales grew above our estimates of 5% and 13% respectively, reporting growth of 10% each

Alembic Pharma’s (Alembic) Q3FY25 result was dragged by tepid performance in India and API biz. India biz growth has been weaker (5.8% in 9MFY25) for the last couple of quarters due to pressure in acute segment even though animal health biz has been growing <20%.

Alembic Pharma (ALPM) delivered operationally in-line 3QFY25 performance. Higher interest outgo and tax led to lower-than-expected earnings for the quarter.

Q2FY25 results were below our estimates on all fronts; however, ALPM expects H2 to be better than H1FY25 driven by healthy product mix

Alembic Pharma’s (ALPM) 2QFY25 results came in below our estimates due to the deterioration in API business and higher operational costs.

ALPM reported strong margin gains in Q4 on account of better utilisation of new facilities and traction in the US business

Alembic Pharma (ALPM) delivered better-than-expected 4QFY24 earnings,
led by better gross margin and improved off-take in the API segment. After
two consecutive years of weak financial performance, ALPM ended FY24
with 10%/14%/43% YoY growth in sales/EBIDTA/PAT to INR62b/INR9.3b/
INR6b.

Monthly Economic Buffet: Economic Round-up January 2024. SBIN: Pension one-off hurts profitability. JSTL: Progressing on expansion but valuations fair. ACEM: Healthy quarter, sustainability key; retain HOLD. ALPM: Healthy quarter; PAT beat on low tax rate. CPBI: Margin stress across segments. VSTT: Poor demand dampens performance

Q2 revenue ticked up 8% YoY as healthy sales in international markets supported by modest India business

Alembic reported a healthy 17.7% YoY revenue growth driven by traction in the export business and APIs. Operational cost of three new plants impacted margins. Management does not expect any material escalation in overhead costs ahead. Company has launched only 5 products (15-20 filed) from the three new sites, which may not be able to improve profitability in the near term.

Alembic Pharma’s (Alembic) Q3FY23 overall performance was a mixed bag. Revenue grew 18.7% YoY to Rs15.1bn (I-Sec: Rs14.1bn). India business grew 11.7% YoY. API revenue was up 64.6% YoY (+10.9% QoQ) to Rs.3.3bn, partially supported by a bulk order in a certain CMO contract.

Alembic Pharma’s (Alembic) Q2FY23 performance was broadly in line with our estimates. Revenue grew 14.1% YoY to Rs14.8bn (I-Sec: Rs14.4bn). India business (excl. one-time benefits) grew ~11% YoY.