Alembic - 3QFY2013 Result Review - Angel Broking

Alembic (CMP: Rs.71/ Target: Rs.91/ Upside: 28%)

For 3QFY2013, Alembic Pharmaceuticals (Alembic) posted sales at Rs.372cr (below expectation of Rs.426cr), mainly driven by the domestic markets, which grew by 14.6% yoy, while exports declined significantly during the quarter by 21.7%. On the operating front, the margin came in at 18.7%, posting an expansion of 78bp yoy and much higher than our expectation of 13.6%. However, in spite of the same the net profit came in at Rs.48.3cr, which was much higher than the expected Rs.28.9cr. The same came on the back of higher-than-expected OPM, higher other income and lower interest expenses.

We maintain our Buy recommendation with a target price of Rs.91.

Source : Equity Bulls

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