(Reuters) – Indian drugmaker Alembic Pharmaceuticals reported a smaller-than-expected rise in second-quarter profit on Thursday, hurt by a slowdown in the U.S. market amid pricing pressure.
The company’s consolidated profit rose 12% to 1.53 billion rupees ($18.1 million) in the quarter ended Sept. 30, but fell short of the analysts’ expectation of 1.55 billion rupees, per estimates compiled by LSEG.
Revenue from operations, which rose 3.3% to 16.48 billion rupees, also missed analysts’ estimates of 17.14 billion rupees, per data compiled by LSEG.
U.S. generics sales grew 5%, but slowed down from an 18% rise in the previous quarter.
KEY CONTEXT
Indian generic drugmakers earn a significant share of their revenue from the U.S., the world’s biggest pharmaceutical market.
While Alembic’s larger rivals Cipla and Sun Pharma beat quarterly profit estimates due to strong U.S. demand, they have also been grappling with lower prices amid stiff competition.
For further earnings highlights, click [Full Story]
PEER COMPARISON
Valuation (next 12 months) Estimates (next 12 months) Analysts’ sentiment
RIC PE EV/EBI Price/Sales Revenue growth profit growth Mean # of Stock to Div
TDA rating analysts price target yield
(%)
Alembic Pharmaceuticals 27.95 17.41 NULL 11.06 20.74 HOLD 9 1.00 0.96
Zydus Lifesciences 21.32 15.17 4.03 9.94 9.15 HOLD 27 0.87 0.30
Dr Reddy’s Laboratories 18.46 11.82 3.27 11.02 5.84 HOLD 35 0.97 0.61
Cipla 25.90 16.39 3.79 8.18 9.91 HOLD 33 0.97 0.82
JULY TO SEPTEMBER STOCK PERFORMANCE
— All data from LSEG
–$1 = 84.3475 Indian rupees
(Reporting by Nishit Navin; Editing by Mrigank Dhaniwala)
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