Views on Alembic Pharmaceuticals Ltd 1QFY2017 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- Pharma, Angel Broking) on Alembic Pharmaceuticals Ltd 1QFY2017 Results:

"For 1QFY2017, the company posted sales of INR 727cr V/s INR 780cr expected V/s INR 583cr in 1QFY2016, a YoY growth of 24.8%. The formulations (INR 607.6cr), a YoY growth of 29.3% YoY, while API (INR 128cr), a YoY growth of 7.0%. The formulations growth was driven by International formulation (INR 309cr), a YoY growth of 72.0%, while Indian formulation (INR 278cr), a YoY growth of 6.0%. On the operating profit front, the OPM came in at 21.4% V/s 17.4% in 1QFY2016, V/s 22.7% expected. Expansion in the OPM was mainly onback of gross margin expansion 73.7% V/s 63.4%. R&D expenses during the quarter was 10.9% of sales V/s 8.2% in 1QFY2016 and this lead the company to post an Adj. net profit of INR 102.0cr V/s INR 69.8cr in 1QFY2016, a YoY growth of 46.1%. We maintain our NEUTRAL rating on the stock."

Shares of ALEMBIC PHARMACEUTICALS LTD. was last trading in BSE at Rs.626.95 as compared to the previous close of Rs. 613.3. The total number of shares traded during the day was 142897 in over 6159 trades.

The stock hit an intraday high of Rs. 644.65 and intraday low of 617.6. The net turnover during the day was Rs. 90389755.

Source : Equity Bulls

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