Lupin, ONGC, Alembic

Lupin, ONGC, Alembic

Alembic Ltd

Alembic Ltd

Alembic

Alembic

Alembic

Alembic

Alembic

Traders with short-term perspective can consider investing in the stock of Alembic. The stock was on a long-term uptrend since October 2008 low of Rs 24.7. It found twin support (uptrend-line and key support level) at Rs 45 recently and started to move upward. On March 23, the stock jumped 7 per cent accompanied with heavy volume, penetrating the 50-day moving average. It is trading well above the 21- and 50-day moving averages. There has been an increase in volumes over the past three trading sessions. The daily relative strength index is featuring in the bullish zone and weekly RSI is on the verge of entering this zone. Moreover, the daily moving average convergence and divergence indicator is likely to enter the positive territory while the weekly indicator is already hovering in this territory. The stock's recent jump has reinforced the bullish momentum and projects positive short-term outlook. We expect the stock's bullish momentum to continue until it hit our price target of Rs 53 and then Rs 55. Short-term traders can enter the stock while maintaining stop-loss at Rs 47.5

via BL

Alembic

We recommend a buy in the stock of Alembic from a short-term perspective. It is apparent from the charts that the stock has been on an intermediate-term uptrend since October 2008 low of Rs 24.7, which is a multi-year low. In early July, the stock found twin support at Rs 35, from the intermediate-term up trendline as well as key support level. Subsequently, the counter resumed its uptrend and has been on a medium-term uptrend too. On August 27, the stock broke through a significant resistance at Rs 45 by surging 8 per cent accompanied with high volume. Besides, it gained 7 per cent with high volume on September 23. The stock is trading well above its 21- and 50-day moving averages. The daily relative strength index (RSI) has entered the bullish zone and weekly RSI is featuring in this zone. The weekly moving average convergence and divergence indicator is steadily rising in the positive territory. We are bullish on the stock from a short-term horizon. We anticipate it to move up until it hits our price target of Rs 56. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 47.5.

via BL

India Economy, Zensar Technologies, Geometric Software, HT Media, Indian Bank, Patel Engineering, Voltamp, Alembic, Petronet LNG

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India Economy, Zensar Technologies, Geometric Software, HT Media, Indian Bank, Patel Engineering, Voltamp, Alembic, Petronet LNG

Alembic

Alembic

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Alembic, UTV Software, Vishal Retail, Shoppers Stop, Suzlon Energy

Electrotherm India, JBF Industries, Aztec Software, KPIT Cummins, Infotech Enterprises, Areva, Alembic Ltd, Murdeshwar Ceramics

Electrotherm India, JBF Industries, Aztec Software, KPIT Cummins, Infotech Enterprises, Areva, Alembic Ltd, Murdeshwar Ceramics,

Anand Rathi - Alembic

Anand Rathi Research report on Alembic:

Company is fully integrated player in Antiinfective segment which is largest segment for this company accounting for over 60% of sales. In this segment company's sales is growing at higher pace compared to industry rate. Apart from this company is also in to - Cough [OTC], Nutraceuticals, Pain management, CV, Diabetese and Gestro-intestinal segments. Company manufactures - bulk drugs, formulations with 4- Brands falling under top selling 300 pharma brands. Company has OTC brands like - Glycodin & Zero, in cough and sugar free sweetner segments.

Company has large fermentation facility to manufacture basic antibiotic - Penicillin. But mostly this is used for captive consumption only. Company is in to Contract manufacturing and has filed around 10 DMFs also and planning to file 6-8 DMFs every year going forward. Company also have a 36 Bed, Clinical Research facility, for Bio-Equivalence trials. So company is capable of offering - Pre-Clinical / Clinical Research and CRAMS to global players.After setting up unit in tax heaven - HP, the company's margins improved significantly for domestic business. Company's Panelav unit in Gujarat, is making both - bulk drugs and formulations. The bulk drug facility is US FDA approved, but formulation unit is approved by - MCC, MHRA; while FDA inspection is due in Current quarter and final approval is expected in last quarter. Right now the major sales is from domestic formulations [69%], but going forward with more approvals from regulated markets, the share of Formulation exports to regulated markets will grow, leading to improved margins.

Company has very recently in April'07, acquired Formulation unit of Dabur Pharma at a cost of Rs 1.59 billion. This will further boost the revenue and profits in the current and coming quarters. With this acquisition, company will be able to increase market share in CV, diabetes and Gynecology segments.

Last quarter of '07 was affected by final settlement with ONGC dues also. But going forward with growth from new acquisitions, new launches and supplies to new regulated markets; will boost the revenue and profits significantly. We expect the company to report EPS of Rs 8.30 and 9.39 for 08 & 09 respectively. So at current price of Rs 73, stock discounts '09 earnings by less then 8 times, which looks quite attractive. Buy for medium term gains.

ISEC - Alembic, Aviation Sector, Tata Tea,

Alembic

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IDBI Capital - Alembic Ltd, EPIC Energy Ltd, Plethico Pharma, Hindustan Oil Exploration

IDBI Capital

Alembic Ltd

EPIC Energy Ltd

Plethico Pharma

Hindustan Oil Exploration

Geojit - CMC & Alembic Ltd

Geojit - CMC - Apr 16

Geojit - Alembic Ltd

From the Research Desk - Alembic

Alembic Ltd: Not rated

Alembic Ltd, established in the year 1907 has a strong presence in the domestic market with focus on the acute segment. The company derives 70% of its revenue from the domestic market which is estimated to grow at 15% annually over the next two years. Acquisition of Dabur Pharma’s non oncology division (growing at 17% annually, FY07E revenue of Rs800mn) has given the company an opening in the chronic therapy segment. The management is confident of growing this division at over 25%. However the full potential of the acquisition would be realized post H2 FY08 given the time required for integrating the existing divisions with the newly acquired business.

The next wave of growth would be from the regulated markets for supply of formulations and APIs. The management is looking at generating US$100mn from the export market by FY09-10. While there is increasing visibility on the domestic market growth, gaining a strong foothold in the regulated markets would remain a challenge for the company considering the intense competition it is likely to witness due to for its ‘Para III’ product portfolio. At Rs60, the stock is trading at 10.4x 9M FY07 annualized EPS of Rs5.7.

Mphasis BFL - ML & Alembic - Anand Rathi

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Thanks Akash