ALEM­BIC PHARMA

Dalal Street Investment Journal - - QUERYBOARD -

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

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