Alkem Labs Q2 Results Review - U.S. Drags Earnings: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Alkem Laboratories Ltd. delivered largely in-line earnings for the quarter. While domestic formulation business growth was in line with our estimate, it slightly underperformed compared to the industry largely due to the subdued demand for acute therapies. The decline in US generics intensified due to a lack of launches and ongoing price erosion.We maintain our estimates for FY25/FY26/FY27. We value Alkem Labs at 25 times 12 months forward earnings to arrive at a target price of Rs 5,720. Alkem Labs is recalibrating its US generics business with a reduction in lowmargin products and focusing on limited competition products. Further, it is preparing itself for CDMO opportunities by building manufacturing capabilities/capacities in the biotech front from Q4 FY25/Q1 FY26 onwards. The DF growth prospects remain volatile given the higher exposure to acute therapies. Considering these aspects, we expect a 10% earnings CAGR over FY25-27. We maintain a Neutral rating, given the current valuation captures earnings upside..Click on the attachment to read the full report:.India Pharma - High Base Moderates IPM Growth For October: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Alkem Labs Q2 Results Review - U.S. Drags Earnings: Motilal Oswal

The brokerage maintains a Neutral rating on the stock, given the current valuation captures earnings upside.

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Alkem Labs Q2 Results Review - U.S. Drags Earnings: Motilal Oswal

The brokerage maintains a Neutral rating on the stock, given the current valuation captures earnings upside.

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