Buy Alkem Laboratories, target price Rs 3730: Motilal Oswal

Motilal Oswal has buy call on with a target price of Rs 3730. The current market price of Alkem Laboratories Ltd. is Rs 3155. Time period given by analyst is one year when Alkem Laboratories price can reach defined target.

Alkem Laboratories Ltd., incorporated in the year 1973, is a Large Cap company (having a market cap of Rs 37548.79 Crore) operating in Pharmaceuticals sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 2238.44 Crore, down -7.29 % from last quarter Total Income of Rs 2414.45 Crore and up 7.80 % from last year same quarter Total Income of Rs 2076.46 Crore. Company reported net profit after tax of Rs 249.22 Crore in latest quarter.
Investment Rationale
The brokerage remains positive on ALKEM on: a) better sales outlook in Anti-Infectives, b)growth in Chronic therapies like Anti-Diabetes and Cardiac, c) sustained cost reduction on higher usage of digital tools, and d) healthy ANDA pipeline in the US market

Promoter/FII Holdings
Promoters held 60.2 per cent stake in the company as of March 31, 2021, while FIIs held 4.4 per cent, DIIs 13.2 per cent and public and others 22.2 per cent.

(Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)