Motilal Oswal: Alembic Pharma’s Export Formulations And API Lead Superior Performance In Q1

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Alembic Pharmaceuticals Ltd. delivered record revenue/Ebitda/profit after tax for Q1 FY21 on the back of strong performance in export formulations/active pharmaceutical ingredient (API) and partly due to lower research and development (R&D) spend for the quarter. Alembic Pharma remains on track in terms of completing capex, with approximately Rs 15 billion spent over FY16–20 and a similar amount expensed for R&D. We expect the meaningful benefit to be reflected from H2 FY22. Covid-19-led drag on domestic formulations growth.We raise our earning per share estimate by 20%/19.4% for FY21/FY22 to factor new launches in U.S. Generics and a favorable outlook for Non-US Formulations/API sales. Accordingly, we revise our price target to Rs 1,100 (from Rs 975 earlier), valuing the stock on a 20 times 12 month forward earnings basis. We maintain Neutral stance on limited upside from current levels..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Motilal Oswal: Alembic Pharma’s Export Formulations And API Lead Superior Performance In Q1

Motilal Oswal: Alembic Pharma’s Export Formulations And API Lead Superior Performance In Q1

Choose a plan