CMP – 1086
MARKET CAP – 20486 cr
BOOK VALUE – 169
52wk HIGH/LOW – 1129/435
5 Year HIGH/LOW – 1129/414
FACE VALUE – 2
DIVIDEND YIELD – 0.92%
FY21 EXPECTED EPS – 68 to 70
Alembic Trading at attractive valuation vs Industry & Its peers.
Agressive players can add stock at cmp & Safe players can wait for Dips and add on SIP bwt 950 T0 1050
Stock has potential To give 2x Returns in next 1.5 To 2 years.And 3x/4x Returns in 5 years.
From 2012 Till date stock has been 30 bagger. Stock has given 30x returns in last 8 years.In 2012 stock was merely trading at Rs.36 and has appreciated by 3000% To trade at 1080.
UPCOMING NEW CAPEX :
Alembic has spent close to Rs.3700 crs including Rs.2000 crs in core capex which will be largely commercialized in FY22 (ex onco injectable – FY23). This will unleash significant growth in areas such as Injectables, Opthalmics and Oncology.
Stock can be Rerated very soon once planned capex starts and That can give much needed growth.
US GROWTH FROM INJECTABLES :
Alembic has more than 80 products, with current market opportunity of USD 38 billion in their Injectable pipeline waiting to be launched over next 2-3 years. Given the patent cliff & current shortages, Alembic is well poised to gain significant market share in these launches.
Company has very Decent ROCE of 23% and ROE of 26.97%.
Company has recently raised 750cr QIP@932.From 750cr company would use 400cr for debt repayment.while remaining fund would be utilized for expanding API & injectable manufacturing facility.
Disc – All views expressed are personal and only for educational and study purpose only. Consult your financial advisor before investing or taking any position based on above article.