Motilal Oswal gave a neutral rating to ALKEM Laboratories with a target price of Rs 5890. The company saw better revenue in 2QFY27, helped by strong international sales. However, higher taxes and depreciation impacted earnings. The firm expects steady growth as it continues to focus on its key global markets.
Motilal Oswal's research report on ALKEM Laboratories Alkem Laboratories (Alkem) delivered marginally better-than-expected revenue/EBITDA (4%/3% beat) in 2QFY27. Better-than-expected performance in international segment (largely non-US) was partly offset by subdued performance in trade generics within India business and lower biotech sales for the quarter. 2Q earnings was marginally lower-than expected due to higher depreciation and a high tax rate for the quarter. Alkem's YoY growth momentum improved in the non-US international segment, with the highest quarterly sales in 2QFY27, driven by superior execution in LATAM markets.
Outlook We largely maintain our estimates for FY27/FY28. We value Alkem at 27x 12-month forward earnings to arrive at a TP of INR5,890. For all recommendations report, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. ALKEM Laboratories - 1311026 - moti