India, international (ex-US) businesses outperforms

Company
11 Mar 2024
5 Min read 
  • Alkem Laboratories reported better-than-expected earnings for 3QFY24.
  •  The company saw strong growth in its international (ex-US) business.
  •  Alkem Laboratories plans to invest in the biosimilar segment and expand its presence in other geographies.
  •  Earnings estimates have been raised for FY24/FY25/FY26.
  •  The stock is rated as Neutral with a target price of INR5,160.
  •  Revenue, EBITDA, and PAT are expected to grow at a CAGR of 12%/14%/9% over FY24-26.
  •  The company expects a 60bp margin improvement.
  •  The US sales segment saw a 10% YoY growth in 3QFY24.
  •  Alkem Laboratories has a strong pipeline of ANDA filings and final approvals in the US market.
  •  Return ratios are expected to decrease going forward.
  •  The company plans to invest in building a manufacturing facility in the US for biosimilar products.
  •  The current valuation of the stock adequately factors in the upside in earnings.
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