Alkem Laboratories Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for ALKEM, BSE:539523 Alkem Laboratories Ltd.

Alkem Laboratories Ltd.

13 Aug 2019

5433.00

-1.36%

Alkem Labs-1QFY20 Result Update

Buy: Alkem Laboratories Ltd.

Reliance Securities

We remain positive on the medium to long-term growth prospects of Alkem on the back of stable revenue growth from high-margin domestic business (outpace IPM growth). However, EBITDA margin is expected to reel under pressure in FY20E/FY21E owing to robust growth in low-margin US business (last 6 quarters average growth at 36%+ YoY) and large number of field force addition (2,000 added in FY17-19 and 1,000 in 1QFY20). At CMP, the stock trades at a PE of 23.7x and 20.3x of FY20E and FY21E earnings, respectively. As we expect the stock to command premium over its peers owing to healthy return ratios and higher exposure to India business, we maintain...

ICICI Securities Limited increased Buy price target of Alkem Laboratories Ltd. to 6400.0 on 19 Sep, 2025.

Alkem Laboratories Ltd.

01 Jul 2019

5433.00

-1.36%

Alkem Labs (BUY): Poised for recovery initiate with BUY

Buy: Alkem Laboratories Ltd.

BOB Capital Markets Ltd.

Alkem Labs is a midsized pharma company (US$ 1bn sales) with India and the US as key markets. It is the market leader in several key acute segments in India. We believe a recovery in Alkem's India business profitability and rising US operating leverage would revive earnings to a 22% CAGR over FY19-FY21 (after a weak FY17-FY19). Post 40% underperformance to the Sensex in the last two years, the stock is trading at 12.3x FY21E EV/EBITDA, implying compelling risk-reward....

Number of FII/FPI investors increased from 535 to 551 in Jun 2025 qtr.

Alkem Laboratories Ltd.

31 May 2019

5433.00

-1.36%

Alkem Labs (4QFY19): Recovery in sight. Maintain BUY

Buy: Alkem Laboratories Ltd.

Target

HDFC Securities

Despite reporting subdued performance in FY19, we remain optimistic over Alkem as we believe the impact of raw material price hikes will alleviate in FY20E, and the domestic business is likely to recover on a softer base of FY19. We expect Alkem to return to normal business margins of 16-16.5% in FY20E. Although it is unlikely to repeat its US performance (+39% YoY) next year due to incremental competition, we do believe a 10%+ YoY growth is achievable owing to 8-10 yearly launches. With the expectation of 14/26% revenue/earnings CAGR, Alkem is available at ~17x FY21E EPS. Considering the stable branded business, healthy cashflows and reasonable return ratios, we believe this is unjustified. We maintain BUY on ALKEM following a big beat to our estimates. Our target price is at Rs 2,250 (22x FY21E EPS).

Number of FII/FPI investors increased from 535 to 551 in Jun 2025 qtr.

Alkem Laboratories Ltd.

30 May 2019

5433.00

-1.36%

Favorable base effect comes into play; superior execution to drive profitability

Buy: Alkem Laboratories Ltd.

Target

Motilal Oswal

period due to changes in the distribution policy, adjusting for which domestic sales growth was in early teens. US business sales were up 19% YoY at INR4.8b. Other international business sales grew 20% YoY to INR1.2b. Margins supported by lower operating cost: Gross margin shrank 300bp YoY to 58.2% on account of product mix change (competition intensified for high-margin products). However, the EBITDA margin expanded 400bp YoY to 12.8% due to lower other expenses (-580bp YoY)/employee cost (-120bp YoY). EBITDA was up 81% YoY at INR2.3b due to high revenue growth and...

ICICI Securities Limited increased Buy price target of Alkem Laboratories Ltd. to 6400.0 on 19 Sep, 2025.

Alkem Laboratories Ltd.

30 May 2019

5433.00

-1.36%

Alkem Labs-4QFY19 Result Update

Buy: Alkem Laboratories Ltd.

Target

Reliance Securities

Alkem Laboratories Ltd. is trading above all available SMAs

Alkem Laboratories Ltd.

26 Apr 2019, 12:00AM

5433.00

-1.36%

ALKEM LABORATORIES LTD

Buy: Alkem Laboratories Ltd.

Ventura

We initiate with a BUY for a price target of Rs. 2,306 representing an

Alkem Laboratories L.. has an average target of 5463.50 from 2 brokers.

Alkem Laboratories Ltd.

26 Mar 2019, 12:00AM

5433.00

-1.36%

FY19 an aberration, but outlook remains promising

Buy: Alkem Laboratories Ltd.

Target

Motilal Oswal

26 March 2019 ALKEM has ramped up its US sales to 6x over FY13-18 on new launches, reasonable market share gains in existing products, and partly on low base. For 9MFY19, ALKEM delivered strong 34% YoY growth to ~USD200m. We expect growth in ALKEMs US business to remain intact despite competition in one of its key products; newer approvals should offset the decline in base business and aid growth in the US generics segment. We expect the base effect to smoothen out and ALKEM to be back on track with aggressive growth in its chronic portfolio and on major therapies in the acute category, thereby aiding 14% revenue CAGR over FY19-21E. Based on 23% earnings CAGR expected over FY19-21E and led by healthy performance in the DF segment, enhanced margins in the US generics business, and attractive on the stock. For 9MFY19, US sales stood at USD200m and saw 34% YoY growth.

Alkem Laboratories L.. has an average target of 5463.50 from 2 brokers.

Alkem Laboratories Ltd.

11 Feb 2019

5433.00

-1.36%

Alkem Labs-3QFY19 Result Update

Alkem Laboratories Ltd.

Reliance Securities

Alkem Laboratories Ltd. is trading above all available SMAs

Alkem Laboratories Ltd.

09 Feb 2019

5433.00

-1.36%

Alkem Labs (3QFY19): Good business at a reasonable price. Maintain BUY

Buy: Alkem Laboratories Ltd.

Target

HDFC Securities

Maintain BUY with a revised TP of Rs 2,340 (22x Dec-20E EPS). Alkems 3QFY19 performance was in line with our expectations. A softer acute season led to a 1% fall in the domestic business, while the 44% jump in the US helped in maintaining 10% plus YoY top line growth. Poor business mix (lower India sales) and increased raw material cost led to a ~680bps drop in gross margin. As a result, EBITDA margin shrunk 450bps YoY and EBITDA declined 13% to Rs 3.1bn. Reported PAT at Rs 2.1bn was up 14% YoY owing to higher taxes in 3QFY18

Number of FII/FPI investors increased from 535 to 551 in Jun 2025 qtr.

Alkem Laboratories Ltd.

05 Nov 2018

5433.00

-1.36%

Alkem Labs (2QFY19): US drives growth. Maintain BUY

Buy: Alkem Laboratories Ltd.

Target

HDFC Securities

Maintain BUY with a TP of Rs 2,415 (22x Sep'20E EPS). Alkems 2QFY19 performance was ahead of expectation with EBITDA margin improving 614bps QoQ to 19% (100bps beat) and PAT coming in at Rs 2.6bn, down 19%YoY (16% beat). Revenues grew 3%YoY to Rs 19bn, in line with our estimates. Within segments, India business declined 6%YoY on a high base due to post-GST restocking last year, while US revenues grew 55%YoY to Rs 4.7bn, on the back of new product launches and currency tailwinds.

Alkem Laboratories Ltd. is trading above all available SMAs

Is Alkem Laboratories Ltd. worth buying?

139 Votes:

Buy 79.14%

Sell 14.39%

Hold 6.47%

RESEARCH REPORTS

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