Review

ALEMBIC PHARMACEUTICALS LTD 

{Ticker : 533573 { FV: Rs 2 { 52-Week H/L: Rs 705.00/435.10 

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). The stock was previously recommended based on its strong ANDA pipeline and revenue growth. 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. Based on the company’s positive performance, we recommended to BOOK PROFIT on April 8, 2020 at Rs 700, with a gain of 9.55 per cent.