ULJK Research

Target: ₹1,350

CMP: ₹1,197.35

In Q3-FY25, revenue from operations of Alivus Life Sciences Ltd (formerly Glenmark Lifesciences) surged to ₹641.80 crore, reflecting a strong 12 pe cent y-o-y growth and a strong 27 per cent q-o-q increase, exceeding our projections.

This impressive performance was driven by growth across both GPL and Non-GPL segments, with contributions from key geographies including India, Europe, Rest of the World (ROW), and Japan.

Gross margins remained healthy at 55.6 per cent for the quarter. EBITDA for the quarter reached ₹190.30 crore, representing a 10 per cent y-o-y growth. EBITDA margins stood at 29.7 per cent, contracting 47 bps YoY but expanding 314 bps q-o-q, driven by a favorable product mix and stable operating expenses.

Profit after tax (PAT) for the quarter reached ₹137 crore, reflecting a 15 per cent y-o-y growth and a significant 44 per cent q-o-q increase.

Considering the successful launch of new CDMO projects, the expansion of reactor capacity, the strategic focus on high-potency APIs and regulated markets, we anticipate a strong growth trajectory for the company. We forecast Revenue, EBITDA, and PAT to achieve a CAGR of 10.2 per cent, 9.8 per cent and 10.3 per cent, respectively, over FY24-FY27E.

Based on our financial projections, we estimate a target price of ₹1,350. This target price is derived by applying a P/E ratio of 24.5x to our estimated FY27E EPS of ₹55.10.

Published on January 27, 2025