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Wednesday, 16 May 2012

WEEKLY INVESTMENT SCRIP

Scrip : Alembic Pharma

Date of Incorporation : 1907

Registered Office : Vadodara, Gujarat

Chairman : Chirayu A Amin

Face Value : Rs.2

Market Price : Rs.52

Target Price : Rs.75

EPS 2011-12 : Rs.6.90

Book Value : Rs.20.95

P/E Ratio : 7.53

52-Week High/Low : Rs.59.95/34

Group : Alembic Group

Products : Pharmaceutical Business

Recommendation : Buy

Financial Highlights:

Rs in Lakhs

Particulars 31/03/2012 QE 31/03/2012 YE 31/03/2012

Net Sales 34261 29732 146639

Total Expenditure 30149 27012 124597

Other Income 13 3 44

Interest 538 636 2621

Tax Expense 526 51 3123

Net Profit 2031 1028 13014

Equity (FV: Rs.2) 3770 3770 3770

Res Ex Rev Reserves - - 35730

EPS (Rs) 1.08 0.55 6.9

Reasons for Recommendation:

* Company with good track record

Rise in sales and profitability

Increase in Earnings Per share

EPS of Rs.6.9 with P/E multiple of 7.53

Dividend of 70% declared for 2011-12

Book Value: Rs.20.95 (FV: Rs.2)

Assuming a P/E multiple of a conservative 12 against industry average of around 24 times , the projected price is Rs.75 in the short to medium term

Disclaimer: All the information/recommendation provided herein are for information purposes only. Readers should consult their investment advisors before making investment decision. The information is given as a matter of service and in good faith. We do not accept liability for actions on the basis of information given herein.

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