Fundamental Analysis

ALKEM LABORATORIES 

{Ticker : 539523 { BUY: Rs.2147.15 { Target: Rs.2450



Alkem Laboratories is a pharmaceutical company engaged in the development, manufacture and sale of pharmaceutical & nutraceutical products. On a consolidated quarterly front, net sales grew 18 per cent in Q2FY20 to Rs 2,264 crore from Rs 1,918.9 crore in Q2FY19. The operating profit for Q2FY20 was Rs 452.6 crore, up by 24.5 per cent from Rs 363.7 crore in Q2FY19. Net profit was reported at Rs 370.9 crore in Q2FY20, growing by 45.7 per cent from Rs 254.5 crore in Q2FY19. Alkem Laboratories Limited recently, entered into an asset purchase agreement with AbbVie Inc., following which Alkem Laboratories will own the NDA and associated assets and use these to commercially exploit both, branded and generic sales, in the US. Hence, we recommend a BUY.