Views on Alembic Pharmaceuticals Ltd 4QFY2016 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking) on Alembic Pharmaceuticals Ltd 4QFY2016 Results:

"Alembic Pharma announced its 4QFY2016 results, which were below expectations, on the sales front. On the sales front, the company posted sales of INR 626cr V/s INR 763cr expected, registering a YoY growth of 24.7%. The growth in the sales was driven by the International formulation (INR 190.2cr) which posted a YoY growth of 20%, while Indian formulation (INR 259.6cr) posted a YoY 12% growth (the growth in the segment was driven by the specialty segment by 13% YoY, while acute segment grew by 7% YoY during the period). API business (INR 166.9cr) posted a growth of 95% YoY.

On the operating front, the EBIDTA margin for the quarter was 22.8% V/s 20.0% expected. The gross margins expanded to 80.8% V/s 65.4% during the last corresponding period, however R&D expenditure during the quarter, which was 17.8% of sales in 4QFY2016 V/s 6.1% of sales during the corresponding period, lead the margin expansion lower than GPM expansion. On the net profit front, the company posted a net profit of INR 91.2cr V/s INR 93.4cr expected, posting a YoY growth of 29.7%. We maintain our NEUTRAL rating on the stock."

Shares of ALEMBIC PHARMACEUTICALS LTD. was last trading in BSE at Rs.601 as compared to the previous close of Rs. 607.45. The total number of shares traded during the day was 16393 in over 1146 trades.

The stock hit an intraday high of Rs. 616.75 and intraday low of 597.5. The net turnover during the day was Rs. 9948817.

Source : Equity Bulls

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