Buy Alembic Pharmaceuticals, target price Rs 653: ICICI Securities

ICICI Securities has buy call on Alembic Pharmaceuticals with a target price of Rs 653.The current market price of Alembic Pharmaceuticals is Rs 544.05.


Alembic Pharmaceuticals, incorporated in the year 2010, is a Mid Cap company (having a market cap of Rs 10695.00 Crore) operating in Pharmaceuticals sector.

Alembic Pharmaceuticals key Products/Revenue Segments include Pharmaceuticals, Export Incentives, Royalty Income and Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 1509.46 Crore, up 2.31 % from last quarter Total Income of Rs 1475.34 Crore and up 18.57 % from last year same quarter Total Income of Rs 1273.04 Crore. Company has reported net profit after tax of Rs 135.51 Crore in latest quarter.

The company’s top management includes Mr.Chirayu Amin, Mr.Pranav Amin, Mr.Shaunak Amin, Mr.R K Baheti, Mr.K G Ramanathan, Mr.Pranav Parikh, Mr.Paresh Saraiya, Dr.Archana Hingorani, Mr.Ashok Barat. Company has K S Aiyar & Co. as its auditors. As on 31-12-2022, the company has a total of 20 Crore shares outstanding.

Investment Rationale
Given the recent correction in the stock price (~18% in the past 3 months) and comfortable valuations coupled with prospects of plants getting regulatory nod, the brokerage upgrades the stock to BUY (from Add) with a revised target price of Rs653/share (earlier: Rs695).

Promoter/FII Holdings
Promoters held 69.61 per cent stake in the company as of 31-Dec-2022, while FIIs owned 4.99 per cent, DIIs 12.72 per cent.