MOSL: ALEMBIC PHARMA (Neutral)-4QFY20 RESULT-Good show in key geographies (US/India) drives earnings
(ALPM IN, Mkt Cap USD1.6b, CMP INR699, TP INR705, 1% Upside, Neutral)
Minimal impact seen on business due to COVID-19 outbreak
** The domestic formulation (DF) segment of Alembic Pharma (ALPM) has finally shown signs of revival after four quarters of muted growth.
** ALPM remains on track in terms of finishing its large capex project (~INR25b) to enhance new dosage offerings and increase capacity requirements in the US Generics segment. We expect the benefit to be witnessed from FY22.
** We have increased our EPS estimate by 11.4%/6.2% for FY21/22 to factor in the favorable outlook for its base portfolio and new launches in US Generics. Accordingly, we have revised our price target to INR705 (from INR642 earlier) on a 17x 12M forward earnings basis. Maintain Neutral stance on limited upside from current levels.
Formulations – Outperformer; API – Underperformer for quarter
** ALPM’s 4QFY20 revenues came in at INR12.1b, up 30% YoY, led by International Formulations (+80% YoY), supported by growth in the US segment (48% of sales; +84% YoY to USD75m) and the Non-US segment (11% of sales; +63% YoY).
** Growth in the DF business also picked up (13% YoY; 28% of sales), while that in the API business was dragged down to some extent (-33% YoY; 13% of sales).
Alembic Pharmaceuticals Limited is a pharmaceutical company. The Company is engaged developing formulations and active pharmaceutical ingredients (API). The Company focuses on anti-infective, analgesic and, cough and cold therapies. It also focuses on therapies, such as cardiology, diabetes, gynecology, gastrointestinal, orthopedic, dermatology and ophthalmology. Its APIs include independent manufacturing blocks for Macrolides, non-steroidal anti-inflammatory drugs (NSAIDs) and other drugs. The Company offers international and domestic formulations. Under domestic formulation, it offers Branded Formulations and Generic formulations. Its domestic formulation include Roxid, Zofix, Althrocin, Tellzy AH, Revas H, Lactonic, Folinal, Gestofit, Glisen 1/2, Glimser 1/2, Veldrop, Azithral, Brinzemic and Neolap. Its generic formulations include Cetral, Ephedrex CD, Sicor, Worid, Alcephin, Alcizon, Baciclox, Comeba, Furobid, O Win Suspension, O win T, Silomag Gel, Pentab, Aginal AT and Pyremol.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.