Established in 1907, Alembic Pharmaceuticals Limited (APL) is one of the leading pharmaceutical companies in India. APL manufactures and markets generic pharmaceutical products across the globe. APL has 6 formulation and 3 API manufacturing facilities. Of the 6 formulation facilities, 5 are located near Vadodara in Gujarat - 3 at Panelav and 2 at Karakhadi. One facility is located in Sikkim.
APL has established a research facility – Alembic Research Centre (Arc)-including formulation research, and 150-bed bioequivalence facility at Vadodara, Gujarat. Additionally, APL has recently invested in a R&D center at Hyderabad. The company has started investing in the international generics market with successful ANDA and DMF filings. APL also has filings across Canada, Europe, Australia, South Africa & Brazil. The company caters to the rest of the world markets through branded formulation sales.
On the financial front, Alembic Pharmaceutical’s revenue decreased 14.30 per cent to ₹ 590.11 Crore in Q1FY18 from
₹ 688.58 crore in Q1FY17. Moreover, the company’s PBDT decreased 49.79 per cent to ₹ 86.24 crore in the first quarter of FY18 vis-à-vis ₹ 171.78 Crore in Q1FY17. The company’s net profit also decreased by 57.68 per cent to ₹ 50.67 crore for the same period.
On an annual basis, the company’s revenue decreased 0.2 per cent to ₹ 2,985.91 crore in FY17 compared to the previous fiscal. The company’s PBDT also decreased 35.78 per cent to
₹ 632.64 crore in FY17 on a yearly basis. The company’s net profit also decreased from ₹ 698.12 crore in FY16 to ₹ 430.66 crore in FY17. The Company is virtually debt free.
Also, the company has a good ROE of 38.46 per cent in last 3 years. We recommend our readers to HOLD the stock.
I Have Bought 35 Shares of Alembic Pharma @620. Shall I Hold or sell the stock? - Goteti Srinivasarao