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Company Analysis
12th Sep 2013
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Recommendation
Reiterate Buy: Rs.141
Target: Rs. 162
Holding Period: 2 Months
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COMPANY OVERVIEW:
BUSINESS:
The company has six business units and they are Active Pharmaceutical
Ingredients (API), Bulk Pharma, Formulations, Herbal Nutraceuticals,
Veterinary and CRAMS. API's continue to make up a significant part of the
operations for Alembic Pharmaceuticals Limited. The fermentation based
APIs are manufactured at its main manufacturing facility exceeding 3
Million sq.mt. APL has an exclusive facility for manufacturing synthetic
APIs, consisting of independent manufacturing blocks for Macrolides,
NSAIDs and other drugs. The API manufacturing facility at panelav has
successfully under gone inspection of USFDA and EDQM. Under bulk
pharma segment the synthetic BPC business is supported with an
independent facility. This facility has its own independent quality control
and Analytical Development facility. Equipped with an excellent pilot
facility for scale-up, this facility is already working with leading firms by
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2012
1465.4
130.1
6.6
20.9
1.4
2013
1520.3
165.2
8.3
26.6
2.5
Investment Rationale:
Alembic Pharma is one of old, leading Indian pharmaceutical company. On
domestic front, the company has strong distribution reach, consistently
launches new products and maintains its market share in spite of tough
competition. The company has 4 brands among Top 300 brands in India and
they are Azithral, Roxid, Althrocin and Wikoryl. Apart from domestic
business, the company actively concentrates on exports markets including
highly regulated US and succeeded on getting regulatory approvals for drug
launch. On March 5, 2013 APL received approval from the US FDA for its
desvenlafaxine base extended release tablets. NDA-Desvenlafaxine is a
bioequivalent version of innovator drug, Pristiq by Pfizer. The company
spends around 5% of its revenue for R&D and continues to explore new
opportunities. Recently the company has increased its capacity to cater high
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growth export market and the positive impact will get reflected in coming
results. Considering its growth potential investors willing to buy a quality
Pharma Company can consider buying Alembic Pharma at current market
price with medium term perspective.
SHAREHOLDING PATTERN AS ON June 2013
%
PROMOTERS
Indian
Total
INSTITUTIONS
Mutual Fund
Insurance, FI
FII
Bodies Corporate
Public and Others
74.13
0.89
0.48
7.73
NSE SYMBOL
FACE VALUE Rs.
EPS Rs.
BOOK VALUE Rs.
P/E
APLLTD
2
8.3
26.6
17.1
1.20
15.57
Prepared By:
Disclaimer: Capstocks & Securities India (Pvt) Ltd do not accept responsibility for consequences of
financial decisions taken by readers on the basis of information provided herein. The aim is to provide a
reasonably accurate picture of financial and related opportunities based on information available with us.
Issued by the Equity Research & Analysis Department of Capstocks & Securities India (Pvt) Ltd, Capstocks
Towers, Thakaraparambu Road, Trivandrum 695023, Kerala. Please note that Capstocks, its directors and
associates may have trading or investment positions in the securities mentioned herein
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