Alkem Labs share price target: Brokerages trim target price post-Q4 results; what should investors do?
Alkem Laboratories share price today: Alkem Laboratories shares fell on Thursday, May 30 after global brokerages trimmed their targets on the drug maker stock post-Q4 results.
Alkem Laboratories share price today, Alkem Laboratories share price target, Alkem Laboratories Q4 results: Alkem Laboratories shares fell on Thursday, May 30 after global brokerages trimmed their targets on the drug maker stock post-Q4 results. Continuing the declining trend for the fifth day, Alkem Laboratories shares fell 6.9 per cent to the day's low of Rs 4,894.6 on NSE in opening deals. The counter closed at Rs 4,962.15, down 5.71 per cent on NSE.
Alkem Labs share price target: Brokerages trim targets
Jefferies has maintained an underperform rating on Alkem Laboratories. The brokerage has slashed the target by Rs 270 apiece to Rs 4,200 apiece. According to Jefferies, Alkem Labs delivered a big miss, all major regions disappointed Jefferies. The global brokerage stated the following key points in its note
- Q4 miss on higher SG&A; muted margin expansion for FY25
- Alkem Laboratories is open to M&A in India vs earlier focus on organic-driven growth
- Cut FY25/26 EPS by 5 per cent/6 per cent on subdued FY26 guidance
In addition, Macquarie too has retained an underperform on the drug maker with a target of Rs 4,500. JP Morgan has maintained neutral with a trimmed target of Rs 5,445 from Rs 5,640 earlier.
Meanwhile, HSBC has continued with a hold with a reduced target of Rs 4,880 apiece from Rs 4,915 apiece earlier.
Alkem Laboratories Q4 results: How did it fare in March quarter?
Alkem Laboratories reported a consolidated net profit surged four-fold to Rs 293 crore for the March 2024 quarter. The firm had reported a net profit of Rs 71 crore for the January-March quarter of FY23. The company said its profit for the fourth quarter of FY23 was impacted on account of derecognition of deferred tax of Rs 120 crore.
Adjusted for the above item, the profit growth for the March quarter of FY24 would have been 54 per cent. Read more on Alkem Labs Q4 results
Management Commentary
"Continuing our trend of improved performance, Q4FY24 builds on the momentum gained from previous quarters with significant gross margin enhancements backed by lower raw material cost and lower intensity of price erosion in the US," Alkem CEO Vikas Gupta said.
Alkem Labs dividend
Alkem Laboratories has recommended a final dividend of Rs 5 per share of Rs 2 each for the year ended on March 31, 2024.
(with PTI inputs)
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