Hold Alembic Pharmaceuticals, target price Rs 660: JM Financial

JM Financial has hold call on Alembic Pharmaceuticals with a target price of Rs 660. The current market price of Alembic Pharmaceuticals is Rs 542. Time period given by analyst is 12 months when Alembic Pharmaceuticals price can reach defined target.

Alembic Pharmaceuticals, incorporated in the year 2010, is a Mid Cap company (having a market cap of Rs 10671.41 Crore) operating in Pharmaceuticals sector.

Alembic Pharmaceuticals key Products/Revenue Segments include Pharmaceuticals, Export Incentives, Royalty Income and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 1509.46 Crore, up 2.31 % from last quarter Total Income of Rs 1475.34 Crore and up 18.57 % from last year same quarter Total Income of Rs 1273.04 Crore. Company has reported net profit after tax of Rs 135.51 Crore in latest quarter.

The company’s top management includes Mr.Chirayu Amin, Mr.Pranav Amin, Mr.Shaunak Amin, Mr.R K Baheti, Mr.K G Ramanathan, Mr.Pranav Parikh, Mr.Paresh Saraiya, Dr.Archana Hingorani, Mr.Ashok Barat. Company has K C Mehta & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 20 Crore shares outstanding.

Investment Rationale
The brokerage maintains its stance given a gradual ramp-up in near-term, cost pressures and limited scope for margin improvement. Further, JM Financial has reduced its earnings by 10% in FY24/25 adjusting for higher costs, depreciation and lower other income.

Promoter/FII Holdings
Promoters held 69.61 per cent stake in the company as of 31-Dec-2022, while FIIs owned 4.99 per cent, DIIs 12.72 per cent.