Alkem Labs Q3 Results Review - India, International (ex-U.S.) Businesses Outperforms: 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.'s delivered better-than-expected Q3 FY24 earnings. While sales were largely in line with estimates, margin came in above our estimate owing to controlled cost base. Alkem Laboratories continued to exhibit strong growth momentum in the international (excluding-U.S.) business.We raise our earnings estimates by 10%/5%/6% for FY24/FY25/FY26 to factor in reduced operating costs/better productivity, a robust show in international business, and an improved outlook for the biosimilar segment. We value Alkem Laboratories at 25 times 12 million forward earnings to arrive at a target price of Rs 5,160.We expect 12%/14%/9% YoY growth in revenue/Ebitda/profit after tax over FY24-26, driven by a 13%/21%/7% sales compound annual growth rate in domestic formulation, international (ex-U.S.), and the U.S. segments. We also expect a 60 basis points margin improvement.While growth prospects remain better in key segments, we maintain our 'Neutral' rating on the stock as the current valuation adequately factors in the upside in earnings..Click on the attachment to read the full report:.IRCON International Q3 Results Review - Good Quarter; Order Win Has Been Lukewarm: IDBI Capital.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 Q3 Results Review - India, International (ex-U.S.) Businesses Outperforms: Motilal Oswal

Steps up investments in biosimilar segment.

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