Review

ALEMBIC PHARMACEUTICALS LIMITED

Ticker : 533573 { FV: Rs2 { 52-Week H/L: Rs682.50/435.10   

We had recommended Alembic Pharmaceuticals Limited in volume no. 36, issue no. 15 (dated February 3, 2020), when the scrip was trading at Rs 639. 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. Post recovery from Coronavirus crisis, the pharmaceutical sector has a strong growth opportunity. Hence, we recommend a HOLD.