Views on Alembic Pharmaceuticals Ltd 4QFY2017 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- Pharma, Angel Broking):

"The company posted 4QFY2017 results marginally lower than expected. In rupee terms, revenues grew by 17.8% YoY to INR 737cr V/s INR 770cr expected V/s INR 626cr in 4QFY2016. In sales term, the company posted growth of back of the international formulations, which grew by 44% YoY, while the Indian domestic formulations grew by 6.0% YoY. API business on the other hand posted a YoY growth of 9.0%. In domestic formulation specialty business, which formulated around 58% of the domestic sales grew by 13.0% YoY, while acute segment which constituted around 33% of domestic formulations, dipped by 8%. The Veterinary segment which constituted around 9% of domestic formulations, posted a YoY growth of 13.0%. In International formulation business, US formulation business grew by 54% YoY. On the operating front, EBITDA margin came in at 18.2% V/s 19.9% expected V/s 22.7% in 4QFY2016, a dip of 460ps YoY. The dip was mainly on back of lower gross margins, which came in at 72.8% V/s 80.2% in 4QFY2016. Thus, PAT came in at INR 93cr V/s INR 101cr expected V/s INR 91.2cr in 4QFY2016, up 2.1% YoY. Given the valuations, we maintain ACCUMULATE rating with a target price of INR 689."

Shares of ALEMBIC PHARMACEUTICALS LTD. was last trading in BSE at Rs.609.2 as compared to the previous close of Rs. 600.05. The total number of shares traded during the day was 5804 in over 259 trades.

The stock hit an intraday high of Rs. 611.05 and intraday low of 599.85. The net turnover during the day was Rs. 3530584.

Source : Equity Bulls

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