Alembic Pharmaceuticals Ltd. share price target

Continuous investments and erosion in gAbilify saleshave led to a correction in the stock. We believe that the business remains attractive at these valuations. Maintain BUY with a TP of Rs 635 (20x Jun-19E). Alembic Pharmas (ALPM) top-line declined ~12% YoY in 1QFY18, with the domestic business plummeting 21% YoY. The EBITDA margin at 15.8% was down 575bps YoY (240bps miss). PAT stood at Rs 667mn, down ~36%YoY. In our view, while 1QFY18 was a weak quarter for ALPM, this was largely expected on account of pre-GST channel de-stocking. Profitability was further impacted by compensation given to dealers for lost input tax credit. The only positive was sequential growth in the US base business (five product launches in 1QFY18).

ICICI Securities Ltd | Retail Equity Research Revenues declined 12% YoY to | 648 crore (I-direct estimate: | 672 crore) mainly on account of a 21% decline in domestic formulations to | 236 crore on the back of GST transition. Total export sales declined 9% to | 282 crore in line with I-direct estimate EBITDA margins contracted 565 bps YoY to 15.6% (I-direct estimate: 18.0%) due to higher employee cost and R&D; expenses. EBITDA declined 35% YoY to | 101 crore (I-direct estimate: | 121 crore)...

Revenue fell by 4.59% to Rs. 741.35 Cr in Q4FY17 when compared to the previous quarter.

Alembic Pharma posted marginally lower than expected results for 4QFY2017. In Rupee terms, revenues grew by 17.8% yoy to `737cr (`770cr expected) v/s `626cr in 4QFY2016. In sales terms, the company posted growth on the back of international formulations, which grew by 44% yoy, while the Indian domestic formulations grew by 6.0% yoy. On th..

ICICI Securities Ltd | Retail Equity Research Revenues increased 18% YoY to | 741 crore (I-direct estimate: | 783 crore) on account of 54% YoY growth in the US to | 200 crore. Domestic formulations grew 10% YoY to | 286 crore (I-direct estimates: | 304 crore) driven by 13% growth in speciality portfolio EBITDA margins contracted 471 bps YoY to 18.2% (I-direct estimate: 19.2%) due to higher raw material and employee cost. EBITDA declined 6% YoY to | 135 crore (I-direct estimate: | 151 crore)...

Alembic Pharmas (ALPM) top line grew ~18% YoY in 4QFY17, albeit on a low base. The EBITDA margin at 18.2% was down 450bps YoY (75bps miss). PAT stood at Rs 930mn, up ~2.2%YoY. In our view, 4QFY17 was a weak quarter for ALPM. Profitability reduced largely on account of higher R&D spend, US front end costs and staffing for the new facilities.

Revenue decreased by 11.67% to Rs. 769.86 Cr in Q3FY17 when compared to the previous quarter. Also, it fell by 15.9% when compared with Q3FY16.

Alembic Pharma posted lower than expected numbers for 3QFY2017. In sales, the company posted revenues of Rs770cr (Rs872cr expected) v/s Rs921cr in 3QFY2016, dip of 16.4% yoy. The dip in sales was mainly on the back of the International sales, which came in at Rs303cr v/s Rs521cr in 3QFY2016, a dip of 41.8%. The Indian branded sales came i..

ICICI Securities Ltd | Retail Equity Research Revenues declined 16% YoY to | 777 crore (I-direct estimate: | 828 crore) mainly on account of the higher base of gAbilify in the US. Domestic branded formulation sales grew mere 2% YoY to | 294 crore (I-direct estimates: | 326 crore) mainly due to price reduction in Azithral (anti-Infective) and demonetisation EBITDA margins were at 18.7% (I-direct estimate: 19.4%) vs. 42% in Q3FY16 owing to the high base of gAbilify margins...

Alembic Pharmas (ALPM) top line declined 16% YoY, EBITDA margin came in at 18.9% (down 2300bps YoY) and PAT stood at Rs 865mn (down ~68%YoY) in 3QFY17. This is largely attributable to the high base of 3QFY16 which included gAbilify sales. The India branded business growth was also muted at 2% YoY, affected by demonetization and NLEM price cuts. ALPM has a higher exposure to semi-urban and rural segments and hence the demonetization impact was higher.