ALKEM LABORATORIES LTD (Alkem) is a dominant Acute focused player in the IPM with leadership in the AntiInfectives. Its strong brands and penetration in the Acute side has led to its superior performance in the IPM. Chronic segment likely to double in size every 3 years on the back of Cardiac and Anti-diabetes. Higher profit contribution from chronic portfolio, improving MR productivity and rising scale in US generics will drive margin expansion of ~430bps over FY20-23E. Alkem's margins expansion visibility, rich return ratios and improving business profile merits a better multiple. We thus value Alkem at INR 4,000 on 17.5x EV/EVITDA on FY23E which gives an upside of 35% from the CMP. At current valuation of 13x EV/EBITDA and 18x PER on FY23E. Key risks include NPPA actions on key products, adverse USFDA regulatory actions and delay in biosimilars....