Fundamental Analysis

ALEMBIC PHARMACEUTICALS 

{Ticker : 533573 { BUY: Rs.639 { Target: Rs.710


Alembic Pharmaceuticals is engaged in developing formulations and Active Pharmaceutical Ingredients (API). On a consolidated quarterly front, the net sales grew by 18.76 per cent in Q3FY20 to Rs 1,209.13 crore from Rs 1,018.15 crore in Q3FY19. The company reported an operating profit of Rs 276.28 crore in Q3FY20, up by 31.09 per cent from Rs 210.75 crore in Q3FY19. Similarly, the net profit reported by the company for the quarter ended December 2019 was Rs 227.68 crore, increasing by 33.34 per cent from Rs 170.75 crore in the same quarter for the previous fiscal year. Consistent product launches including the limited competition products. Meanwhile, the company's efforts to building a strong ANDA pipeline are encouraging in terms of revenue growth. Hence, we recommend a BUY.