(Reuters) -India’s Alembic Pharmaceuticals reported a 14.6% rise in consolidated profit for the first quarter on Tuesday, driven by strong sales in the U.S. and India.
The firm’s consolidated profit rose to 1.54 billion rupees ($17.5 mln) in the quarter ended June 30, slightly above analysts estimate of 1.53 billion rupees, according to data compiled by LSEG.
Revenue rose 9.5% to 17.11 billion rupees during the quarter.
Alembic’s U.S. generics business grew 13% year-on-year, while its India branded business rose 5%.
KEY CONTEXT
India’s generic drugmakers have been facing margin pressures due to lower prices in the U.S. amid fierce competition. They are also staring at the threat of a potential increase in tariffs in this key market.
Alembic said it launched 4 new products in the U.S. during the quarter. The U.S. contributed 29% of Alembic Pharma’s overall revenue for fiscal 2025.
Larger peers Cipla, Dr Reddys Laboratories, and Aurobindo Pharma have reported weak performance in the U.S.
PEER COMPARISON
Valuation (next 12 Estimates Analysts’
months) (next 12 months) sentiment
RIC PE EV/EBI Price/ Revenue Profit Mean No. of Stock to Div
TDA Sales growth (%) growth (%) rating* analyst price yield
s target** (%)
Alembic 24.70 15.22 NULL 10.90 25.75 Buy 10 0.97 1.14
Pharmaceuticals
Dr Reddy’s 19.36 12.25 3.11 3.96 -6.83 Hold 37 0.94 0.65
Laboratories
Cipla 24.12 15.45 3.83 6.57 -0.95 Buy 35 0.90 0.86
Zydus Lifesciences 21.61 14.09 4.04 6.71 -5.11 Hold 26 0.97 1.15
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
— All data from LSEG
— $1 = 87.7770 rupees
($1 = 87.7770 Indian rupees)
(Reporting by Vijay Malkar in Bengaluru; Editing by Harikrishnan Nair)
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