HDFC Securities has recommended 'Buy' on Alembic Pharmaceuticals (ALPM) with target price of Rs 221 as against current market price (CMP) of Rs 253 in its report.
Commenting on the investment rationale, HDFC Securities said, ''ALPM has lagged its peers in the past decade in both domestic as well as US markets but with enhanced R&D efforts, aggressive strategies for Domestic formulations and a strong balance sheet, the company is poised for a robust growth phase.
Although ALPM has witnessed P/E expansion from 8-10x levels to 10-13x levels, we see enough room for further re-rating on the stock as its US pipeline unfolds.
The stock still trades at an attractive valuation of 14.9x FY15E EPS and 11.1x FY16E EPS. We value ALPM at 15x FY16E EPS of Rs 26.1 and recommend Buy with a TP of Rs 392.''
Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.