Alkem Laboratories: Strong fundamentals and reasonable valuations; Upside 27%

Motilal Oswal | 29 Nov, 2017  | Follow Author | Add to my Favourites 
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Over the last 10 years, ALKEM has outperformed most of the Indian pharma companies in the domestic market, driven by its consistent launches in acute therapies like anti-infective, pain/analgesic and vitamins, while also growing its presence in high-growth chronic therapies like CNS, cardiac, derma and antidiabetic.


Globally, ALKEM has launched 20 products in the US market and has 50+ pending ANDAs. On the back of improved presence in the chronic business and significant leverage from the US segment, we expect ALKEM’s earnings to grow at a 14% CAGR over the next three years. This will be supported by 12% revenue CAGR and 300bp margin expansion over FY17-20E.


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About Motilal Oswal

Motilal Oswal was founded in 1987 as a small sub-broking unit, with just two people running the show. Today it has a 2000 member team with a networth of Rs7 bn and market capitalization as of March 31, 2008 at Rs19 bn.

 

For more information please write in to [email protected]

Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.



Alkem Laboratories: Strong fundamentals and reasonable valuations; Upside 27%

Motilal Oswal | 29 Nov, 2017  | Follow Author | Add to my Favourites 


Over the last 10 years, ALKEM has outperformed most of the Indian pharma companies in the domestic market, driven by its consistent launches in acute therapies like anti-infective, pain/analgesic and vitamins, while also growing its presence in high-growth chronic therapies like CNS, cardiac, derma and antidiabetic.


Globally, ALKEM has launched 20 products in the US market and has 50+ pending ANDAs. On the back of improved presence in the chronic business and significant leverage from the US segment, we expect ALKEM’s earnings to grow at a 14% CAGR over the next three years. This will be supported by 12% revenue CAGR and 300bp margin expansion over FY17-20E.


Link to the PDF




About Motilal Oswal

Motilal Oswal was founded in 1987 as a small sub-broking unit, with just two people running the show. Today it has a 2000 member team with a networth of Rs7 bn and market capitalization as of March 31, 2008 at Rs19 bn.

 

For more information please write in to [email protected]

Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.