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.

14 Aug 2019

5626.50

-0.21%

Alkem Labs (1QFY20): On recovery path. Mainatain BUY

Buy: Alkem Laboratories Ltd.

Target

HDFC Securities

With a lower than expected impact of gMycophenolate competition in the US, coupled with the highest top-line growth in India business among large-cap peers (1QFY20), we maintain our FY20/21E revenue estimates for Alkem and model a 13% CAGR over FY19-21E. The profitability, too, is likely to expand by 100-120bps YoY with lower raw material prices and improving business mix. With moderated tax expectations, we model 25% EPS CAGR over FY19-21E. Alkem remains among the fastest-growing companies in the Indian market while its performance in the US also stands out. At CMP, Alkem is available at 18x FY21E EPS. Considering its stable branded business, healthy cashflows (~Rs 8bn annual FCFF over FY20/21E), and reasonable return ratios (22% RoIC in FY21E), we believe this is unjustified. We maintain BUY on ALKEM despite a big miss on our 1QFY20 estimates. Our TP is 2,180 (22x FY21E EPS) with estimates largely unchanged owing to a sharp recovery expected in the next two quarters following a shift in the seasonally strong quarters (from 1Q earlier to 2Q now).

Alkem Laboratories L.. has an average target of 5562.33 from 3 brokers.

Alkem Laboratories Ltd.

13 Aug 2019

5626.50

-0.21%

Alkem Labs (BUY): Good Q1, guiding for better margins ahead; retain BUY

Buy: Alkem Laboratories Ltd.

BOB Capital Markets Ltd.

Alkem Labs reported a good Q1FY20 with an 11% EBITDA beat owing to gross margin expansion and better cost control.

Number of FII/FPI investors increased from 551 to 589 in Sep 2025 qtr.

Alkem Laboratories Ltd.

13 Aug 2019

5626.50

-0.21%

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...

Alkem Laboratories Ltd. is trading below its 30 day SMA of 5637.7

Alkem Laboratories Ltd.

01 Jul 2019

5626.50

-0.21%

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....

Alkem Laboratories Ltd. is trading above its 200 day SMA of 5142.3

Alkem Laboratories Ltd.

31 May 2019

5626.50

-0.21%

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).

Alkem Laboratories Ltd. is trading above its 200 day SMA of 5142.3

Alkem Laboratories Ltd.

30 May 2019

5626.50

-0.21%

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...

Alkem Laboratories Ltd. is trading above its 200 day SMA of 5142.3

Alkem Laboratories Ltd.

30 May 2019

5626.50

-0.21%

Alkem Labs-4QFY19 Result Update

Buy: Alkem Laboratories Ltd.

Target

Reliance Securities

Number of FII/FPI investors increased from 551 to 589 in Sep 2025 qtr.

Alkem Laboratories Ltd.

26 Apr 2019

5626.50

-0.21%

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 5562.33 from 3 brokers.

Alkem Laboratories Ltd.

26 Mar 2019

5626.50

-0.21%

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.