STOCK IDEA Alembic Pharma Ltd Ltd CMP: Rs 180 Target Price: Rs 205 Recommendation: HOLD and Buy on Decline Stellar Results Alembic Pharma reported sales growth of 19.4% yoy to Rs 484.3 cr, which was above the expectations. Higher sales are attributed to the increased supply from its fully functional Panelav facility which eased the supply constraints. EBITDA and PAT were also above expectations at Rs 92.7 cr and Rs 61.6 cr. EBITDA margins have improved by ~240 bps qoq and ~320 bps yoy to 19.1%. However, for the first time management has showed their concern towards the slow development of Desvenlafaxine. Considering the improving margins with steady growth and recent re-rating of the stock, We recommend investors to HOLD on the stock and BUY on declines with price target of Rs 205 (14x of FY15E EPS), an upside of 13.8% from current levels GR ASSOCIATES NBSPL SATARA
Posted on: Mon, 28 Oct 2013 06:02:20 +0000
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