Alembic Pharma - Q1FY21 result update - YES SECURITIES

BUY (Target Rs1,180, Upside 18%)

- Strong beat in revenues driven by US at US$79mn as sartans continue to remain stable opportunity; not much from Azithromycin

- Margin came in better than expected at 30% as R&D spend lower at Rs1.4bn vs Rs1.8bn in Q4 FY20; gross margin came off due to lower India and higher API revenues

- QIP to fund complex generics and 505b2 opportunities as also to repay debt; funding for less capex intensive but longer gestation programs

- We retain 25x PE and believe any further PE rerating is not warranted given that gap with Torrent would be largely closed at our target multiple; Retain BUY with a revised PT of Rs1,180 as we tweak FY21/22 estimates. Any meaningful extension of sartans opportunity well beyond H1 FY21 would be a key risks to our estimates/reco.

Shares of ALEMBIC PHARMACEUTICALS LTD. was last trading in BSE at Rs.999.35 as compared to the previous close of Rs. 994.7. The total number of shares traded during the day was 129208 in over 8964 trades.

The stock hit an intraday high of Rs. 1044.25 and intraday low of 919.75. The net turnover during the day was Rs. 130988148.

Source : Equity Bulls

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