Views on Alembic Pharmaceutics 2QFY2016 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking) on Alembic Pharmaceutics 2QFY2016 Results:

For 2QFY2016, company posted numbers well ahead of expectations. The company posted an 84.5% growth in sales to end the period at INR 1008cr V/s INR 750cr expected. This was primarily driven by gAbilify launch in the US. Overall formulations were 84% of sales in 2QFY2016, with International generic (45% of sales) and Indian branded (34% of sales). The international generic (INR 559.3cr) posted sales growth of 342% yoy. The Indian formulation branded sales (INR 2846cr) posted sales growth of 3.3% yoy. The API business posted a yoy growth of 43% yoy. On operating front, the OPM came in at 37.2% V/s 27.8% expected V/s 19.5% in 2QFY2015. R&D expenditure during the quarter was 9.4% of sales V/s 13.0% of sales in 2QFY2015. The net profit consequently came in at INR 289cr V/s INR 177.3cr expected and V/s INR 77.3cr in 2QFY2015, a yoy growth of 273.9%. We maintain our NEUTRAL stance on the stock.

Shares of ALEMBIC PHARMACEUTICALS LTD. was last trading in BSE at Rs.675.95 as compared to the previous close of Rs. 664.35. The total number of shares traded during the day was 124261 in over 5298 trades.

The stock hit an intraday high of Rs. 699 and intraday low of 671. The net turnover during the day was Rs. 85216937.

Source : Equity Bulls

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