Add Alembic Pharmaceuticals, target price Rs 695: ICICI Securities

ICICI Securities has add call on Alembic Pharmaceuticals with a target price of Rs 695. The current market price of Alembic Pharmaceuticals is Rs 647.35.

Alembic Pharmaceuticals Ltd., incorporated in the year 2010, is a Mid Cap company (having a market cap of Rs 12775.62 Crore) operating in Pharmaceuticals sector.

Alembic Pharmaceuticals Ltd. 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 30-09-2022, the company reported a Consolidated Total Income of Rs 1475.34 Crore, up 16.79 % from last quarter Total Income of Rs 1263.22 Crore and up 13.97 % from last year same quarter Total Income of Rs 1294.52 Crore. Company reported net profit after tax of Rs 135.00 Crore in latest quarter.

Investment Rationale
The brokerage raises revenue and EPS estimates by 2-3% and 0-4%, respectively, for FY23E-FY24E, to factor-in the new approvals in the US offset by elevated costs. Considering the recent correction, it upgrades the stock to ADD (from Reduce) with a revised target price of Rs695/share (earlier: Rs641). Key downside risks: Delayed launches of new products and forex fluctuations.

Promoter/FII Holdings
Promoters held 69.61 per cent stake in the company as of 30-Sep-2022, while FIIs owned 5.94 per cent, DIIs 12.51 per cent.