Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

Alembic Pharma (Q3 FY21) - 'First signs of sartans weakness' - YES Securities

Posted On: 2021-01-19 22:24:44 (Time Zone: Arizona, USA)


Our view: Sartans contribution saw first significant erosion after multiple quarters though US sales still hovered around US$70mn in Q3. We reckon focus would be on the ex-sartans portfolio which should pick up on back of incremental approvals. Expect US sales to consolidate over next 12-18 months till new facilities see ANDA approvals post inspection. In the meanwhile, domestic business and ROW sales would add to the growth. Continue to factor in margin decline in FY22 and FY23 and a pick up thereafter. Tweak FY21 and FY22 estimates by 3-5% based on continued lower tax rate as seen in Q3 FY21 but retain BUY based on unchanged 25x PE and TP of Rs1,280.

Q3 call highlights

- EBITDA margin - should be in the range of 27-30%.

- The company has planned to launch 5+ products in 4QFY21E.

- Associate company has reported a profit for the first time and reflected in the consol PAT.

- Capex of Rs2bn and Rs5bn in 9m FY21 along with Rs17bn in CWIP.

- Domestic business: Cold & Cough market is under performing due to which the company is also underperforming in the segment.

- India growth driven by old products and new products launches will take time to pick up

- Lost some market share in Sartans and bulk of loss in US sales is attributed to sartans

- US sales would be similar to US$70mn going ahead

- US sales expectation by FY24 between US$400-500mn

- Can add 2-3 more injectable lines once the injectable facility is inspected and approved

- Stepping up investments on API; cumulative investment of Rs4-5bn on API and injectables over next 2 years

- Hopeful of FDA inspection in the next 2 quarters

- R&D will come down to 9-10% of sales once the facilities are commercialized and revenues kick in

- In Timolol - there is good opportunity for the company (currently only the innovator and Sandoz are there in the market, but still there is supply shortage, which will provide the company with a good growth prospect).

- R&D at Rs6.3bn for FY21 and Rs7-7.5bn in FY22

- Negligible sales at Aleor derma JV and there is loss in the JV due to limited number of products in the portfolio

- During the quarter, the company has filed for 1 ANDA filling, they have also received 6 final approvals from USFDA.

- YTDFY21 the company has filed for 16 ANDA approvals. They have received 12 final approvals.

- Out of the total of 137 approvals, 110 approvals are from the oral solids, 13 from ophthalmic, 13 from Derma and 1 from injectables.

- The company till date has launched 89 products (in 3QFY21 the company has launched 7 products).

Shares of ALEMBIC PHARMACEUTICALS LTD. was last trading in BSE at Rs.1029.9 as compared to the previous close of Rs. 1070.1. The total number of shares traded during the day was 45522 in over 3284 trades.

The stock hit an intraday high of Rs. 1090.75 and intraday low of 1025. The net turnover during the day was Rs. 48028457.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

4th Industrial Conclave - Bullish undertone, favourable valuation - HDFC Securities

Sanofi India - Weak quarter; sequential improvement - ICICI Securities

Sunteck Realty - All eyes on upcoming launches - ICICI Securities

Company Update - Tata Motors - ICICI Direct

Q4CY20 Company Update - Mahindra CIE Automotive - ICICI Direct

Event Update - Hindalco - ICICI Direct

EY report launch at BioAsia 2021 - Moving the needle: Healthcare industry in a post-COVID world

Initiating Coverage - Dalmia Bharat Ltd - HDFC Securities Retail Research Desk

Initiating Coverage - Mastek Ltd - HDFC Securities Retail Research Desk

Hindalco Industries - Status quo maintained - ICICI Securities

Tata Motors - India business scaling in the right direction - ICICI Securities

IPO Review - Heranba Industries Ltd

Company Update - Narayana Hrudayalaya - ICICI Direct

Ambuja Cements - Market share sustenance key for rerating - ICICI Securities

ADD on Astral Poly Technik - An 'astr'onomical growth story - HDFC Securities

FMCG Sector Update Report - Divergence narrows; refocus on core - HDFC Securities

Maintain REDUCE on Jubilant FoodWorks - More legs for growth; reflecting confidence on core - HDFC Securities

Torrent Power - Growth acceleration - ICICI Securities

Mahindra CIE Automotive - CY20 performance closes on a strong note - ICICI Securities

Q3FY21 Company Update - V-Guard Industries - ICICI Direct

Quant Pick - Indus Towers - ICICI Direct

Q4CY20 Result Update - Ambuja Cement - ICICI Direct

Q3FY21 Company Update - Nesco Ltd - ICICI Direct

Maintain BUY on Ambuja Cements - Healthy quarter; multiple triggers ahead - HDFC Securities

Heranba Industries Ltd. - IPO - Sound Financials & Promising Outlook Augur Well

India Equity Strategy Report - Quarterly flipbook: Q3 - upgrades galore! - HDFC Securities

Earnings Wrap Q3FY21: Encouraging quarter, broad based recovery under way!

Shilpa Medicare - USFDA import alert at Jadcherla unit - ICICI Securities

Q3FY21 Company Update - Indian Bank - ICICI Direct

Quant Pick - Torrent Power - ICICI Direct

GE T&D India - Strong cashflow - ICICI Securities

Q3FY21 Result Update - Graphite India - ICICI Direct

Q4CY2020 Result Update - Varun Beverages - ICICI Direct

Q3FY21 Company Update - NBCC Ltd - ICICI Direct

Quant Pick - United Breweries - ICICI Direct

Q4CY2020 Result Update - Nestlé India - ICICI Direct

Q3FY21 Result Update - Time Technoplast - ICICI Direct

Healthy Business Performance Puts ITC Stock Recovery on Track

Gold - Feb 17, 2021 - Reliance Securities

Maintain REDUCE on Nestle India - Steady revenue show; employee cost dents margins - HDFC Securities

Varun Beverages - Q4 CY20 Result and Concall Update - YES Securities

Nestle India - Q4 CY20 Result Update - YES Securities

Reiterate BUY on JMC Projects - Some hits, some misses - HDFC Securities

Varun Beverages - Strong volumes; higher margins - ICICI Securities

Computer Age Management Services - Play on industry AUM growth - ICICI Securities

Nestle India - Just a tad underwhelming (given the high benchmarks expected from Nestle India) - ICICI Securities

NHPC - Earnings robust; projects on track - ICICI Securities

Maintain BUY on ITD Cementation - Gradual recovery shaping up - HDFC Securities

Techno Electric & Engineering - Strong margins, healthy growth outlook - ICICI Securities

Time Technoplast - Outlook upbeat; execution remains key - ICICI Securities



Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020