Alkem Laboratories’ share price climbed 4.76% to Rs 4,219 after the company reported a 76.83% rise in consolidated net profit at Rs 614.89 crore for the second quarter of FY24 compared to Rs 347.72 crore in Q2FY23, in a regulatory filing. The company’s revenue stood at Rs 3,440.17 crore, up from Rs 3,079.37 crore a year ago. Expenses also rose slightly to Rs 2,797.66 crore from Rs 2,727.71 crore in the same period last year.
Alkem Laboratories’ shares have delivered remarkable returns to investors, with a 13% gain in the last five days, 19% in the last one month, 20.18% in the last six months, and a whopping 40.73% year-to-date.
Choice Broking: Add – Target Price: Rs 4375
“We factor in the domestic and US growth guidance of high-single digits, allocation of capital towards the complex products, cost optimization measures which will improve margins going forward. We expect the Revenue/ EBITDA/ PAT to grow at a CAGR of 10.1%/19.1%/28.8% for FY23-26E. We introduce FY26 and value the stock on FY26E EPS to arrive at a target price of Rs 4,375 (valuing at 23x) with an ‘Add’ rating on the stock.”
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