Buy Alkem Laboratories, target price Rs 3430: Motilal Oswal

Motilal Oswal has buy call on Alkem Laboratories with a target price of Rs 3430. The current market price of Alkem Laboratories is Rs 2895.

Alkem Laboratories Ltd., incorporated in the year 1973, is a Large Cap company (having a market cap of Rs 34831.08 Crore) operating in Pharmaceuticals sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 2318.05 Crore, down 1.89 % from last quarter Sales of Rs 2362.80 Crore and up 6.24 % from last year same quarter Sales of Rs 2181.84 Crore Company has reported net profit after tax of Rs 463.85 Crore in latest quarter.


Investment Rationale
The brokerage expects a 17% earnings CAGR over FY20–23E, led by a 15%/9% sales CAGR in the US/DF Generics segment and 410bp margin expansion – on account of new launches / better traction in existing products in the US and recovery in Hospital Injectables in DF.

Promoter/FII Holdings
Promoters held 62.4 per cent stake in the company as of Dec 30, 2020, while FIIs held 4.1 per cent, DIIs 13 per cent and public and others 20.5 per cent.