Views on Alembic Pharma Ltd 3QFY2017 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- Pharma, Angel Broking) on Alembic Pharma Ltd 3QFY2017 Results:

Alembic Pharma (CMP: INR 586 / TP: / Upside:)

"Alembic Pharma posted numbers lower than expectations, in sales, the company posted revenues of INR 770cr V/s INR 872cr expected V/s INR 921cr in 3QFY2016, dip of 16.4% YoY. The dip in sales was mainly on back of the International sales, which came in at INR 303cr V/s INR 521cr in 3QFY2016, a dip of 41.8%. The Indian branded sales came in at INR 294cr V/s INR 288cr, a YoY growth of 2.1%. API sales on the other hand came in at INR 166cr V/s INR 101cr in 3QFY2016, a YoY growth of 66.0%.On EBITDA front the company posted an EBITDA of 18.8% V/s 20.6% expected and V/s 41.7% in 3QFY2016. The dip came in on back of the high R&D expenses, which came in at 15.2% of sales V/s 7.6% of sales in 3QFY2016. Also other expenses came in higher- the employee expenses and other expenses rose by 33.5% and 43.6% respectively. Consequently, PAT, came in at INR 87cr (lower than expectations) V/s INR 270cr in 3QFY2016, de-growth of 67.8% YoY. We maintain our NEUTRAL rating on the stock."

Shares of ALEMBIC PHARMACEUTICALS LTD. was last trading in BSE at Rs.586.15 as compared to the previous close of Rs. 585.4. The total number of shares traded during the day was 25955 in over 2084 trades.

The stock hit an intraday high of Rs. 594.9 and intraday low of 575. The net turnover during the day was Rs. 15128594.

Source : Equity Bulls

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