Alkem Laboratories Ltd. share price target

Alkem Lab (ALKEM) is advancing its MedTech strategy through the acquisition of up to a 55% stake in Occlutech for ~EUR99m (~INR10.6b), gaining control of a specialist in minimally invasive devices for congenital heart disease, stroke prevention, and heart failure.

Alkem Laboratories (Alkem) reported decent numbers in Q3FY26 led by its international operations. Domestic biz growth slowed to 5.6% YoY, hit by inventory stocking last year and deceleration in trade generics. Management is confident of posting double-digit growth in FY26 (9MFY26 growth at ~10%).

Sales/EBITDA/APAT reported 1.3%/2.4% and -3.4% below our estimates. EBITDA margin reported 25bps lower than estimates at 22.2%

ALKEM is taking significant steps in its Medtech journey through acquiring Occlutech (develops, manufactures, and commercialized medical devices for congenital heart disease, stroke prevention and heart failure).

Sales/EBITDA/PAT reported 9%/9% and 2.8% above our estimates. EBITDA margin reported in line with our estimates at 23%

Alkem Laboratories (Alkem) delivered a strong Q2FY26 result led by traction across regions. Growth in India biz (+12% YoY) was led by better traction in chronic therapies and recent foray in medical devices segment, while new launches including gEntresto boosted US revenue (+28%).

ALKEM Laboratories (ALKEM) delivered better-than-expected revenue/EBITDA/PAT, with a beat of 6%/9%/13% for the quarter. The superior performance was driven by broad-based higher revenue growth and lower-than-expected R&D spend for the quarter.

Alkem Laboratories’ CEO, Dr. Vikas Gupta, is targeting double-digit revenue growth in the medium term, driven by strong hold in India (68% of sales), other international markets and new ventures.

Alkem Laboratories (Alkem)’s Q1FY26 performance exceeded our expectations on all fronts. The outperformance was led by a strong showing in India (up 12%) and improved momentum across US (+8.8%) and other international markets (+9%).

Sales/EBITDA/PAT surpassed our estimates by 4%27%/46%. This was due to lower other expenses & lower ETR

Alkem missed our estimates where Sales /EBITDA /PAT were 0.4%/17% and 15%. EBITDA margin was 160 bps lower than estimates

Domestic sales were 6% below our estimates mainly due to slower recovery in the acute therapies and no price hike in NLEM portfolio

Q2 reported in-line numbers, where sales/EBITDA were 4% below our estimates. However, PAT was 1% above our estimate

With an established presence in the Domestic Formulation (DF) segment and exports, ALKEM is boosting its growth prospects in the bio-CDMO and med-tech segments. The overall investment in the bio-CDMO segment is expected to be ~INR14b.

Revenue grew 9% YoY in Q3 backed by strong India and ROW growth that offset lower US business

Q2 EBITDA/PAT outstripped consensus by 44%/54% on higher margins, strong US growth and low taxes

On a low base, Alkem’s Q1FY24 revenue / EBITDA / PAT grew 15% / 91% / 125% YoY, marginally ahead of our expectations. Growth in India was dragged by its trade generics biz (17-18% of India sales) though branded biz did better. Management has lowered its India revenue growth guidance to single digits owing to lacklustre outlook.

Q1 revenue/EBITDA a beat as international business outperformed; adj. PAT growth in line with consensus at 65% QoQ

Q4 EBITDA/PAT of Rs 3.5bn/Rs 710mn well short of consensus by 21%/ 79% primarily due to higher operating costs