ULJK Research has set a target of ₹1,350 for Alivus Life Sciences Ltd (formerly Glenmark Lifesciences), with the current market price at ₹1,197.35.
In the third quarter of FY25, Alivus Life Sciences reported a revenue of ₹641.80 crore, marking a strong 12% year-on-year growth and a significant 27% quarter-on-quarter increase, surpassing expectations. Revenue growth was seen across both GPL and Non-GPL segments, driven by key geographies such as India, Europe, Rest of the World (ROW), and Japan.
The company maintained healthy gross margins of 55.6% for the quarter. EBITDA stood at ₹190.30 crore, representing a 10% year-on-year growth. EBITDA margins were at 29.7%, contracting by 47 basis points year-on-year but expanding by 314 basis points quarter-on-quarter due to a favorable product mix and stable operating expenses.
Profit after tax (PAT) for the quarter reached ₹137 crore, showing a 15% year-on-year growth and a significant 44% quarter-on-quarter increase.
The company’s successful launch of new CDMO projects, expansion of reactor capacity, and strategic focus on high-potency APIs and regulated markets are expected to drive a strong growth trajectory. It is projected that Revenue, EBITDA, and PAT will achieve a compound annual growth rate of 10.2%, 9.8%, and 10.3%, respectively, over FY24-FY27E.
Based on financial projections, a target price of ₹1,350 is estimated by applying a P/E ratio of 24.5x to the estimated FY27E EPS of ₹55.10.
The article was originally published on January 27, 2025.
