Alembic Pharma Q3 Results Review - Efforts Underway To Sustain Margin Revival: Motilal Oswal

Motilal Oswal Report

Alembic Pharmaceuticals Ltd. delivered a better-than-expected performance in Q3 FY23, driven by improved sales growth in the domestic formulation/active pharma ingredient segment and controlled employee/research and development expenses.

We raise Alembic Pharma's FY23 earnings estimates by 4% to factor in higher API sales and off-take of flu-related products. While R&D spending is expected to drop YoY in FY24, it would be offset to some extent by opex related to new manufacturing facilities. Hence, we maintain estimates for FY24/FY25.

With abbreviated new drug application launches likely to pick up pace over the medium term as facilities become compliant, we expect earnings to revive over FY23-25.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.