Motilal Oswal is bullish on Alkem Laboraties has recommended buy rating on the stock with a target price of Rs 2850 in its research report dated June 06, 2020.
Motilal Oswal 's research report on Alkem Laboraties
ALKEM ended FY20 on strong note - earnings were up 50% YoY, led by healthy growth in the US (a key market), domestic formulation (DF) and improved operating leverage. While the COVID-19 pandemic could affect DF growth in the near term and subsequently impact earnings, we believe that ALKEM has enough levers (new launches/increased market share in DF/the US and minimal regulatory risk) to strengthen its earnings trajectory.
Outlook
We cut our EPS estimates by 6%/4% for FY21/FY22E to factor in the near-term weakness in the DF segment. Accordingly, we revise our price target to INR2,850 on 22x 12-month forward earnings. We remain positive on ALKEM due to robust ANDA pipeline/minimal regulatory risk in the US and sustained outperformance in DF. Maintain Buy.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment ecisions.
Read More
