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:

Warehousing demand expected to grow around 160% to reach 35 million sq. ft in 2021: JLL

Telecom - Spectrum auction: Prudent investment by Bharti Airtel - ICICI Securities

JB Chemicals & Pharmaceuticals - Analyst meet takeaways - ICICI Securities

IPO Review - MTAR Technologies Ltd - ICICI Direct

Auto Sector - Monthly Volume Round-up - Feb 21 - Decent YoY Growth Continues

Aditya Birla Fashion and Retail - Focus on scaling up new businesses - ICICI Securities

Automobiles (wholesale) - Wholesales push continues despite modest retail trends - ICICI Securities

Aditya Birla Capital - Thoughtful (inclusive) conglomerate business evolution commands premium - ICICI Securities

Jubilant Foodworks - Buying in-the-money options - ICICI Securities

Multi Commodity Exchange of India - Play on rising commodity prices? - ICICI Securities

Gladiator Stocks - Sudarshan Chemical - ICICI Direct

Monthly Commodities Outlook - March 2021 - ICICI Direct

ICICI Direct - Monthly Currency Outlook: Rupee to depreciate further towards 75.00 level...

ICICI Direct - Covid Recovery Pulse - E-way bill generation in February 2021 starts on strong note...

Company Update - Virtual JLR Investor Event - Tata Motors - ICICI Direct

Analyst Meet Update - Aditya Birla Fashion and Retail - ICICI Direct

MTAR Technologies Ltd. - IPO - Huge Opportunities from Clean Energy Bodes Well - Reliance Research

ICICI Direct Derivatives Weekly View (February 26): Failure to move above 14700 may extend declines towards 14300...

Bank: Sector Credit Trends - Slows, Yet again - HDFC Securities

Piramal Enterprises - Pharma day highlights - ICICI Securities

Polymer price tracker - PVC prices rise sharply again! - ICICI Securities

Greenply Industries - Growth returns, at an inflection point - ICICI Securities

Tata Motors - JLR future proofing itself with rapid electric transition - ICICI Securities

Dairy - Higher freight cost and increase in Global SMP prices - ICICI Securities

Analyst Meet Update - Nestlé India (Hold): Focus on product innovation, expanding rural reach - ICICI Direct

MTAR Technologies Ltd - A strong player in booming high precision engineering... - Geojit

Rollover Report for February - March 2021 : Angel Broking

Reaction from industry experts on Q3FY21 GDP numbers

M. Govinda Rao, Chief Economic Adviser, Brickwork ratings on Q3FY21 GDP numbers

Mr. Dhiraj Relli, MD & CEO, HDFC securities views on Q3FY21 GDP Growth Number

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research on Q3FY21 GDP

Rollover Analysis - Feb 21, 2021 - YES Securities

Consumer Durables - Demand-driven recovery continues - HDFC Securities

Cement - Demand surprises; earnings upgrade to continue - ICICI Securities

Gladiator Stocks - TeamLease Services - ICICI Direct

Gladiator Stocks - Metals to outshine post multi-year breakout... - ICICI Direct

Company Update - Sundaram Finance - ICICI Direct

Indian pharmaceutical industry to meet an ambition of US$130 billion by 2030 through innovation-led growth: EY-FICCI report

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



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

disclaimer copyright © 2005 - 2020