Buy Alkem Labs, target price Rs 2902: ICICI Securities

ICICI Securities has given a buy rating to Alkem Laboratories with a target price of Rs 2902. The share price moved up by 2.02 per cent from its previous close of Rs 2477.75. The stock’s last traded price is Rs 2527.75.

Alkem Laboratories Ltd., incorporated in the year 1973, is a Large Cap company (having a market cap of Rs 29903.21 Crore) operating in Pharmaceuticals sector.

Investment Rationale
The brokerage said that Alkem Laboratories has a solid India business, improving margin trajectory, consistent track record of growth outperformance and attractive valuations


Financials
For the quarter ended 31-03-2020, the company has reported a Consolidated sales of Rs 2048.99 Crore, down -6.09 % from last quarter Sales of Rs 2181.84 Crore and up 10.51 % from last year same quarter Sales of Rs 1854.20 Crore Company has reported net profit after tax of Rs 191.54 Crore in latest quarter.

Promoter/FII Holdings
Promoters held 65.88 per cent stake in the company as of March 31, 2020, while FIIs held 3.64 per cent, DIIs 11.78 per cent and public and others 18.70 per cent.