Alembic Pharmaceuticals Ltd. share price target

In Q3FY18, total revenues of Alembic Pharma increased by 8% YoY to Rs8.4 bn (above our estimates Rs 7.8 bn). The Companys operating marginsincreased from 18.7% to 22.3% YoY (our estimates 22%).

Maintain NEUTRAL with a revised TP of Rs 605 (20x Dec-19E EPS). Alembic Pharmas (ALPM) top-line grew ~9% YoY in 3QFY18, boosted by a better than expected performance in the US and strong growth in the API business. The US business recorded a YoY growth of 8-10% in $ terms, vs our expectation of flat revenues. The domestic business was up 14% YoY, in-line with estimates. The EBITDA margin surprised positively at ~22.3%, up ~350bps YoY and flat QoQ. However, this was largely on account of lower R&D; spend, which may not be sustainable.

Alembic Pharma posted marginally lower than expected sales for 2QFY2018. In Rupee terms, revenues de-grew by 10.2% yoy to `789cr (`980cr expected) v/s. `879cr in 2QFY2017. International formulation came in at `262cr v/s. `352cr in 2QFY2017, a yoy dip of 26.0%. Indian formulation sales came in at `385cr v/s. `363cr in 2QFY2017, a yoy growt..

Q2FY18 revenue declined 10% YoY, while EBITDA margin improved 250 bps YoY at 22.7% led by lower other expenses (-29% YoY) on lower promotion expenses in India business.

Revenue grew by 21.77% to Rs. 789.29 Cr in Q2FY18 when compared to the previous quarter Revenue grew by 21.77% to Rs. 789.29 Cr in Q2FY18 when compared to the previous quarter

ICICI Securities Ltd | Retail Equity Research Revenues declined 10% YoY to | 789 crore (I-direct estimate: | 846 crore) mainly on account of 26% YoY decline in the export business to | 262 crore (I-direct estimate: | 277 crore). Domestic sales increased 6% YoY to | 385 crore (I-direct estimate: | 396 crore) EBITDA margins improved 248 bps YoY to 22.7% (I-direct estimate: 18.0%) mainly due to lower other expenditure. EBITDA increased 1% YoY to | 179 crore vis--vis I-direct estimate of | 152 crore...

Downgrade to NEUTRAL with a TP of Rs 555 (20x on Sep-19E). Alembic Pharmas (ALPM) top-line declined ~10% YoY in 2QFY18 on a high base of 2QFY17, which included limited competition sales of gAbilify. There was QoQ growth of 23%. The domestic business performance was disappointing, growing only ~6% YoY in spite of the benefits of channel re-stocking. The EBITDA margin surprised positively at ~23%, up 230bps/690bps YoY/QoQ (370bps beat). This was largely driven by operating leverage and a favourable business mix. PAT stood at Rs 1.2bn, up ~82% QoQ.

remained flat sequentially, but as % of sales, it rose by >400bp). PAT increased 2% YoY to INR1.2b (23% beat). Strong recovery in domestic business; US remains under pressure: Domestic business grew 6% YoY, driven by ~10% YoY growth in Specialty business. Top-line growth in domestic market was impacted by treatment of excise duty post GST implementation. On a like-to-like basis, domestic business grew ~13% YoY. International business sales declined 26% YoY. US business declined by ~29% YoY and non-US business by ~13% YoY. We...

Alembic Pharma posted marginally lower than expected results for 1QFY2018. In Rupee terms, revenues de-grew by 12.0% yoy to `648cr (`737cr expected) v/s. `737cr in 1QFY2017. International formulation came in at `282cr v/s. `309cr in 1QFY2017, a yoy dip of 8.7%. Indian formulation sales came in at `236cr v/s. `299cr in 1QFY2017, a yoy dip ..

Alembic Pharma's (ALPM) Q1FY18 results were below estimates due to 21% YoY decline in India revenue (estimate: 12% YoY decline) on channel destocking ahead of GST rollout. Management expects gradual restocking in the trade channel, and subsequent volume recovery through Q2'18. US sales declined ..