Mehabe score: 8 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 6.
Description
Alembic Pharmaceuticals is in the business of development, manufacturing, and marketing of Pharmaceuticals products i.e. Formulations and Active Pharmaceutical Ingredients.
The company has 3 R&D and 5 manufacturing facilities.
Main Points
52% turnover from International Generics #
Alembic Pharma operates through 3 primary business segments – International generics (52% of sales, with 75% being from the US), Domestic branded business (32% of sales), and API business(16% of sales) as of Q3FY21.Site:APLLTD
Market Cap:
Rs 19,634 cr
Price:
999.0
Trading pe:
16.7x
Book-value:
261/share
Div yield:
0.70 %
Earning yield:
7.02%
Face-value:
2.00/share
52week high:
1150.00
52week low:
863.55
Technical Analysis
Stock trades at 999.0, above its 50dma 964.97. It also trades above its 200dma 945.13. The stock remains bullish on techicals
The 52 week high is at 1150.00 and the 52week low is at 863.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 26.96%
– has been maintaining a healthy dividend payout of 21.28%
-Debtor days have improved from 45.83 to 23.59 days.
Weakness
– Promoter holding has decreased over last 3 years: -3.45%
Competition
– The industry trades at a mean P/E of 28.8x. Sun Pharma.Inds. trades at the industry’s max P/E of 55.24x. APLLTD trades at a P/E of 16.7x
– Industry’s mean G-Factor is 2.4 while the mean Piotski score is 8.0. APLLTD has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 6.8%. The max 1- month return was given by Piramal Enterp.: a return of 33.82 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1280.0 cr compared to Rs 1207.0 cr for period ended Mar 2020, a rise of 6.0%
Operating Profits reported at Rs 342.0 cr for period ended Mar 2021 vis-vis 292.0 for period ended Mar 2020 .
Operating Margins expanded 252.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 12.75 compared to Rs 14.88 for previous quarter ended Dec 2020 and Rs 11.93 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 5393.0 cr for period ended Mar 2021 vis-vis sales of Rs 4606.0 cr for the period ended Mar 2020, a healthy growth of 14.6%. The 3 year sales cagr stood at 19.9%.
Operating margins expanded to 29.0% for period ended Mar 2021 vis-vis 27.0% for period ended Mar 2020, expansion of 200.0 bps.
Net Profit reported at Rs 1178.0 cr for period ended Mar 2021 vis-vis sales of Rs 829.0 cr for the period ended Mar 2020, rising 29.6%.
Company recorded a healthy Net Profit CAGR of 41.8% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1463.0 cr for period ended Mar 2021 vis-vis Rs 449.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 28.0% compared to 27.0% over the last 3 Years. – The stock has given a return of 10% on a 1 Year basis vis-vis a return of 25% over the last 3 Years. – The compounded sales growth on a TTM bassis is 17% vis-vis a compounded sales growth of 20% over the last 3 Years. – The compounded profit growth on a TTM basis is 42% vis-vis a compounded profit growth of 42% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 6.56% vis-vis 6.96% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 12.99% vis-vis 13.12% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 26.96%
– has been maintaining a healthy dividend payout of 21.28%
-Debtor days have improved from 45.83 to 23.59 days. – Promoter holding has decreased over last 3 years: -3.45%
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 964.97 and is trading at 999.0, thus bullish price action wise.
