Shares of the alembic pharma have decreased by 8 percent to Rs. 840. It happened in the BSE intraday trade program that was held on Tuesday. It was when the company had reported disappointment of the members of the pharma. The report has been filled in at the quarter-end of June 2021. 

There is a profit of about 45.4 percent, and after that, there is a decline of Rs. 164.50 crore in a week while performing in the US. This pharma company has posted the  PAT  of Rs. 301 crore in Q1FY21.

The earning before the taxes and interest margin has declined by 1,258 points to 17.8 percent. It is because of the increment in the expenditure. The company has suffered a loss of 1.1 percent to Rs.1,326 crore. 

But in this, the company had a substantial profit in the growth of the domestic formulation. The business in the US has also declined by 38.1 percent to Rs. 363 crore. The unique segments of the market have increased faster than the represented pharmaceutical market, and the company itself researches this.

Impact on the US and Indian Business

The Indian business is growing exceptionally well, and now many people are stopping the business growth. You have to maintain that momentum.

Due to the increased competition, the US business had faced much price erosion.

The US market was impacted for a very long period by this erosion. The performance was below the expectation. It is mainly affected by the decrease in US sales. 

The raw material used by the market is very high in quantity, but the expected result is not so good. The pressure of the price and increasing portfolio can manage the expected US quarterly sales to remain subdued in the near term.

The study made by  Oswal financial services has stated that the estimate has lowered by 23 percent to the factors that cause the erosion of US sales. All declines are due to the ongoing pandemic situation.

The benefits for the people who have invested in product development are significantly less due to the ongoing pandemic situation. The breakage in this market has affected the result of the economy. Now there are very few people who want to invest in the stock market due to current levels.

The main points that dragged the US market down are price erosion and increased competition. This affected the net profit by 45 percent in the quarter ended June 30, 2021.

What are expert views on the same?

  • The  Head of Retail Research HDFC Securities Deepak Jasani said that Healthcare stocks went up by Alembic pharma, who came out with excellent Q1FY22 numbers.
  • The healthcare index of  BSE  jumped over 2%. Alembic Pharma’s capital income rose 28% to ₹9,720 crores. It also took a small charge of about 6.31 billion rupees in the latest quarter.
  • India sales are about ₹3300 crores, up 39% compared to the same quarter last year, while the US sales rose to 35% to $380 million. Alembic pharma said this in a statement. Sales in other geographies have also jumped. All The drugmaker has repaid debt of about $185 million. 

Conclusion 

We hope that the above paragraph will help you know the factors that affect the shares of Alembic pharma company. Many factors dip the shares of Alembic pharma, but the main factor is the law in the US market. That’s why it is necessary to comply with the laws and regulations of your country. 

Now many of the investors are not investing in the stock market. India does not expect this level of loss in the market or stock value. For more information about shares, markets, and related blogs, please stay connected with us. 

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