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Alembic Pharma Q1 Results Review - Execution Remains A Key: Dolat Capital

Launch momentum is critical for U.S. growth; domestic business growth to remain steady.

<div class="paragraphs"><p>Close view of capsules. (Source: pexels/Suzy Hazelwood)</p></div>
Close view of capsules. (Source: pexels/Suzy Hazelwood)

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Dolat Capital Report

Alembic Pharmaceuticals Ltd.’s Q1 FY24 showed a mixed bag performance with Ebitda margin below estimates while revenue and profit after tax above our estimates.

Revenues at Rs 14.9 billion (above estimate), grew by 17.7%/5.7% YoY/QoQ on higher international generic sales. Ebitda stood at Rs 1.99 billion inline (+73%YoY/- 11.0% QoQ).

Alembic Pharma's Ebitda margin at 13.4% was below estimates due to higher than expected operational and staff costs. Profit after tax stood at Rs 1.2 billion (above estimate) grew by 233.8% YoY due to lower depreciation expenses, tax and higher other income.

We upgrade our earnings per share estimates by 26.2%/23.1% in FY24E/FY25E assuming higher international generic and active pharma ingredient sales coupled with lower tax and lower depreciation cost.

With limited upside, we downgrade to 'Sell' with a revised target price of Rs 700.

Click on the attachment to read the full report:

Dolat Capital Alembic Pharma Q1FY24 Result Update.pdf
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