Alivus Life Sciences Limited (formerly Glenmark Life Sciences (NSE:ALIV) Limited), a prominent developer and manufacturer of high-value Active Pharmaceutical (TADAWUL:2070) Ingredients (APIs), delivered robust Q3 FY25 results, showcasing double-digit growth across key financial metrics.
Revenue for Q3 FY25 reached INR 6,418 million, marking a 12.0% year-on-year (YoY) increase and a significant 26.6% growth quarter-on-quarter (QoQ). For the nine-month period ending December 31, 2024, revenue stood at INR 17,373 million.
EBITDA for Q3 FY25 surged to INR 2,008 million, reflecting a 15.2% YoY growth and 40.5% QoQ increase. EBITDA margins expanded to 31.3%, an improvement of 90 basis points YoY and 310 basis points QoQ. The company’s Profit After Tax (PAT) for Q3 FY25 was INR 1,370 million, translating to a PAT margin of 21.3%.
Strong cash flow generation continued, with free cash flow of INR 1,838 million during 9M FY25, bolstering cash reserves to INR 4,993 million. The company also achieved its highest-ever quarterly revenue, attributed to growth across key markets like India, Europe, Japan, and Rest of the World (ROW).
The company made significant progress in its API portfolio, adding two synthetic small molecules to its development pipeline in Q3 FY25. Its High-Potency API (HP API) portfolio now comprises 21 active APIs, with six products validated and six others in advanced stages of development.
Dr. Yasir Rawjee, MD & CEO, emphasized the company’s focus on scalability and long-term sustainability, while CFO Tushar Mistry highlighted cost efficiency as a driver of margin stability.
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While Alivus Life Sciences showcases operational strength, investors should approach its stock valuation with caution. According to InvestingPro, the fair value of Alivus Life Sciences is estimated at INR 877.7 per share, indicating a 25.1% downside potential from the current market price of INR 1,170. This discrepancy signals that the stock may be overvalued, making it a clear “avoid” for investors at current levels.
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