Neutral on Alembic Pharma, target price Rs 970: Motilal Oswal

Motilal Oswal has neutral call on Alembic Pharma with a target price of Rs 970. The current market price of Alembic Pharmaceuticals is Rs 829.95. Time period given by analyst is one year when Alembic Pharmaceuticals price can reach defined target.

Alembic Pharmaceuticals Ltd., incorporated in the year 2010, is a Mid Cap company (having a market cap of Rs 16891.65 Crore) operating in Pharmaceuticals sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 1327.91 Crore, up 3.39 % from last quarter Total Income of Rs 1284.34 Crore and down -1.02 % from last year same quarter Total Income of Rs 1341.64 Crore. Company reported net profit after tax of Rs 148.35 Crore in latest quarter.


Investment Rationale
The benefits of a meaningful investment in product development as well as R&D towards Injectables are getting prolonged due to ongoing COVID-related travel restrictions on inspections. The brokerage maintains Neutral rating on limited upside from current levels.

Promoter/FII Holdings
Promoters held 69.5 per cent stake in the company as of June 30, 2021, while FIIs held 6.4 per cent, DIIs 11.3 per cent and public and others 12.9 per cent.