Alembic Pharma Q2 Results Review - Strong Execution Drives Earnings Beat: Motilal Oswal

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Alembic Pharmaceuticals Ltd. delivered better-than-expected earnings for Q2 YF23, fueled by healthy growth across domestic formulation, exports as well as active pharma ingredient segments. Part of the earnings was boosted by certain one-time opportunities in the U.S. generics segment. We raise our earnings per share estimate for FY23 by 5% to factor in:superior traction in the U.S. generics segment,better-than-industry growth in the DF segment androbust order-book in the API segment. While product approvals would enable long awaited scale-up of operations at injectable sites (F2/F3) and subsequently drive 53% YoY earnings growth for FY24E, the return on equity still remains muted at 11%. Further, the U.S. generics business trades at a much lower multiple (at 12-15 times earnings) versus branded generics (at 22-25 times earnings) and due to Alembic Pharma’s increased share of business expected from the U.S. generics, the overall valuation multiple is likely to remain capped despite strong earnings growth..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime 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 author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Alembic Pharma Q2 Results Review - Strong Execution Drives Earnings Beat: Motilal Oswal

Part of the earnings was boosted by certain one-time opportunities in the U.S. generics segment.

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Alembic Pharma Q2 Results Review - Strong Execution Drives Earnings Beat: Motilal Oswal

Part of the earnings was boosted by certain one-time opportunities in the U.S. generics segment.

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