Buy Call: Alembic Pharmaceuticals bullish says Yes Securities.

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Yes Securities has given a buy rating to Alembic Pharmaceuticals with a target price of Rs 1180. The share price moved down by 2.54 per cent from its previous close of Rs 3052.15. The stock’s last traded price is Rs 3079.

Alembic Pharmaceuticals Ltd, incorporated in the year 2010, is a Mid Cap company (having a market cap of Rs 19440.09 Crore) operating in Pharmaceuticals sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 1457.10 Crore, up 8.63 % from last quarter Sales of Rs 1341.32 Crore and up 17.43 % from last year same quarter Sales of Rs 1240.87 Crore Company reported net profit after tax of Rs 325.42 Crore in latest quarter.

Investment Rationale
A solid performance and an unprecedented EPS guidance indicates a high confidence on visibility of sustaining sartans in FY21. Alembic stays the top BUY with unchanged TP Rs1,180. Upside risks exist to FY22 estimates if sartans continue to surprise next fiscal.

Promoter/FII Holdings
Promoters held 73 per cent stake in the company as of June 30, 2020, while FIIs and DIIs held 14.4 per cent and public and others 12.6 per cent.