Alkem Labs Q1 Results Review - International Markets, Lower Raw Material Cost Drive Earnings: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Alkem Laboratories Ltd. delivered better-than-expected Q1 FY24 performance, fueled by superior traction in international markets. Alkem Labs' business growth was broad-based within international markets including the U.S., Chile, the UK, Kazakhstan and the Philippines.  We cut our earnings estimates by 7%/1% for FY24/FY25, factoring in:unfavorable seasonality effect in domestic formulation segment,increased tax rate, andbetter prospects in bioscience segment as well as in international markets. We value Alkem Labs at 21 times 12 months forward earnings to arrive at our target price of Rs 3,810. While Alkem Labs continues to progress well in chronic segment (17-19% of branded generics part of DF sales), the growth prospects of acute segment remain volatile due to seasonality factor. The exports (34% of Q1 FY24 sales) have seen healthy uptick from existing products. However, we await new approvals for sustainable growth. Further, the valuation adequately factors in the upside in the earnings. Maintain 'Neutral'..Click on the attachment to read the full report:.Biocon Q1 Results: Profit Drops 30%, Misses Estimates.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Alkem Labs Q1 Results Review - International Markets, Lower Raw Material Cost Drive Earnings: Motilal Oswal

Bioscience off-take at a healthy pace.

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