Alembic Pharmaceuticals - Q4FY13 Result Review - Angel Broking

Alembic Pharmaceuticals, for the, 4QFY2013 posted a very good set of numbers, much higher than expectations, on back of higher than expected rise in the sales growth and significant reduction in the interest expenditures. The top line grew by 10.0% to Rs. 375cr, mainly on back of domestic markets, which grew by 16% yoy, while exports grew only by 3% yoy( impacted on back of capacity constraints).

On the domestic front, the sales growth came on back of the API segment, which grew by 30% yoy, while the formulations posted a growth of 12% yoy . Consequently, the OPM came in at 17.0%, much higher than the 14.6% expected, a expansion of 560bps. This aided the adjusted Net Profit to grow by 115.0% yoy to end the period at Rs. 43.7cr.

We recommend a buy on the stock with a revised target of Rs. 139.

Source : Equity Bulls

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