India's Alivus Life posts bigger Q3 profit on API boost

Alivus Life Sciences

23/01/2025 09:21

Jan 23 (Reuters) - Indian drugmaker Alivus Life Sciences  ALIV.NS , formerly called
Glenmark Life Sciences, reported a higher third-quarter profit on Thursday, driven by strong
demand in its mainstay active pharmaceutical ingredients (API) business.
    The Mumbai-based company said its profit rose to 1.37 billion rupees (nearly $16 million) for
the three months ended Dec. 31 from 1.19 billion rupees a year earlier.
    The company's shares rose as much as 4.2% after the results to their intraday high of 1,171
rupees.
    Its revenue from operations rose 12% to 6.42 billion rupees, led by a 17% jump in its API
business. APIs are key elements added to drugs to produce desired health effects.
    For further results highlights, click  urn:newsml:reuters.com:*:nFWN3OJ018
    
    KEY CONTEXT
    Indian API makers have been enjoying increasing demand in their key Europe and U.S. markets,
and are expected to benefit further from global drugmakers turning to India and other markets to
limit their reliance on Chinese firms.
    Moreover, the restart of Alivus's manufacturing plant in the western state of Gujarat removed
a key overhang on production. Last quarter, Alivus reported a lower profit as revenue across
geographies was hurt due to the facility's closure.
    Alivus has over 130 APIs in its portfolio across key therapy areas such as cardiovascular,
oncology and anti-infectives.
    
    PEER COMPARISON
    
                                          Estimates (next        Analysts' sentiment       
                                             12 months)                                    
                 RIC        PE    EV/EBI  Revenue   Profit  Mean     # of      Stock to    Div
                                  TDA     growth    growth  rating*  analysts  price       yield
                                          (%)       (%)                        target**    (%)
 Alivus Life      ALIV.NS   25.1   16.62   13.84    16.68   Strong          5     1.06       2.04
 Sciences                      1                            Buy                            
 Granules India   GRAN.NS   23.8   13.58   11.71    27.88   Strong          4     0.89       0.25
                               1                            Buy                            
 Laurus Labs      LAUL.NS   61.0   25.14   15.43    88.31   Hold           11     1.29       0.14
                               0                                                           
 Divi's           DIVI.NS   61.8   43.49   16.78    28.45   Hold           21     1.10       0.50
 Laboratories                  5                                                           
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong
Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the
stock is trading above the PT
    
    OCTOBER TO DECEMBER STOCK PERFORMANCE
-- All data from LSEG
-- $1 = 86.4770 Indian rupees

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 (Reporting by Kashish Tandon in Bengaluru; Editing by Savio D'Souza)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))