Elara initiates coverage on Alkem, Eris, IPCA and Mankind. Check ratings and targets

Brokerage firm Elara has initiated coverage on Alkem Laboratories, Eris Lifesciences, IPCA Laboratories and Mankind Pharma, with ratings ranging from Buy to Reduce. Alkem received a Buy rating; Eris and Mankind were both rated Accumulate, and IPCA was rated Reduce.

According to Elara, Alkem offers the strongest potential for margin recovery, while Eris and Mankind could benefit from portfolio expansion, acquisition synergies and deleveraging. On IPCA, Elara noted that the stock's 30% rally over the past three months has already priced in much of the expected margin recovery.

Alkem Laboratories

• Rating: Buy
• Target Price: Rs 6,533
• Upside: 23%
• CMP: INR 5,320

Elara expects Alkem to benefit from improving domestic pharmaceutical demand and its investments in diabetes, cardiac and CNS therapies. The brokerage said the planned launch of semaglutide could strengthen the company's chronic portfolio.


According to Elara, stabilisation in the US business, the launch of generic Jynarque and narrowing losses in the medical devices and biologics CDMO businesses could support margin improvement from the second half of FY27.

Eris Lifesciences

• Rating: Accumulate
• Target price: Rs 1,471
• Upside: 12%
• CMP: Rs 1,312

The firm said Eris's presence in diabetes, cardiovascular and other chronic therapies provides steady growth and prescription visibility. The brokerage also sees the GLP-1 segment as an additional opportunity for the company.

It expects revenue and EBITDA CAGRs of around 10% and 7%, respectively, over FY26-FY28, adding that acquisition integration, improving cash generation and debt reduction could support profitability and return ratios.

IPCA Laboratories

• Rating: Reduce
• Target price: Rs 2,043
• Upside: 4%
• CMP: Rs 1,960

Elara expects IPCA's domestic business to benefit from improving medical representative productivity and a higher contribution from chronic therapies. It also noted signs of recovery in the company's Europe and institutional anti-malarial businesses.

However, the brokerage said synergies from the Unichem integration have not materialised to the extent initially expected. Following the stock's 30% rise over three months, Elara believes much of the anticipated operational improvement is already reflected in its valuation.

Mankind Pharma

• Rating: Accumulate
• Target price: Rs 2,616
• Upside: 8%
• CMP: Rs 2,418

Elara expects Mankind's growing exposure to chronic therapies to improve its growth and profitability outlook. The brokerage said the company's insulin licensing agreement could further strengthen its diabetes portfolio.

According to Elara, benefits from the Bharat Serums and Vaccines (BSV) acquisition should begin emerging after a slower-than-expected integration. It expects revenue and EBITDA CAGRs of around 11% and 14%, respectively, over FY26-FY28.

The brokerage also estimates that strong cash generation could help Mankind repay its Rs 6,200 crore debt by the end of FY28, with lower finance costs supporting EPS growth.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)