Shares of the leading pharmaceutical company gained around 7 percent to hit an all-time high price of Rs 4,301.9 per share on Wednesday after Nomura gave an upside of 23 percent followed by strong Q2 results.
At 2:01 p.m., Alkem Laboratories Ltd shares were quoting at Rs 4,214, up Rs 191.35 or 4.62 percent, on the National Stock Exchange. The company has a market capitalization of Rs 50,790 crore. The company’s shares have delivered returns of 20 percent in six months and 32 percent in a year.
According to the company’s exchange filing. Alkem Laboratories Ltd reported an 11.7 percent increase in revenue year on year, from Rs 3,079 crore in Q2FY23 to Rs 3,440 crore in Q2FY24. During the same period, net profit increased by 77 percent from Rs 347 crore to Rs 614.8 crore.
In comparison to the previous quarter, operational revenue increased by 16 percent from Rs 2,967 crore in Q1FY24 to Rs 3,440 crore in Q2FY24, Further net profit has increased by 125 percent from Rs 287.8 crore to Rs 614.8 crore.
Nomura Brokerage has initiated a ‘buy’ call on Alkem Laboratories Ltd with a target price of Rs 4,963 per share, representing an upside potential of up to 23% from Wednesday’s close price.
The rationale behind providing such a recommendation is
● The company reported strong Q2 results ahead of estimates and the company’s earnings were supported by lower cost and Tax rates. ● The company has planned for acquisition in upcoming quarters. ● The company Margin guidance has Marginally raised from FY24 to 16.5 percent from 16 percent earlier.
● The company retains guidance High single-digit growth guidance for India in FY24.
According to the recent shareholding pattern, the company promoters hold a 56.74 percent stake in the company, while Domestic Institutional Investors hold a 17.63 percent stake, and retail investors have a 19.58 percent stake in the company.
Alkem Laboratories is a leading pharmaceutical company that is engaged in the development, manufacture, and sale of pharmaceutical and nutraceutical products
Written by Omkar Chitnis
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