- Alkem Lab’s net income for the second quarter was 6.89 billion rupees, which is an 11% increase year-over-year, surpassing the estimated 6.73 billion rupees.
- Revenue slightly decreased by 0.9% compared to the previous year, reaching 34.1 billion rupees, below the estimated 36.28 billion rupees.
- Total costs were reduced by 1.1% year-over-year, amounting to 27.7 billion rupees.
- The finance cost decreased by 7.2% year-over-year to 281.4 million rupees, though higher than the estimated 242.9 million rupees.
- Employee benefits expenses rose by 9.9% year-over-year, totaling 6.1 billion rupees, slightly less than the estimated 6.24 billion rupees.
- Other income significantly increased to 1.34 billion rupees from 631.9 million rupees year-over-year.
- Despite positive net income, Alkem Lab shares dipped by 2% to 5,393 rupees with 198,790 shares traded.
- Market sentiment shows 9 “buy” ratings, 8 “hold” ratings, and 6 “sell” ratings.
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Alkem Laboratories Ltd on Smartkarma
Analysts on Smartkarma have different views on Alkem Laboratories Ltd. Brian Freitas discusses stocks with potential passive inflows in November, noting Alkem as one that could see inclusion in global passive portfolios. He identifies Alkem among others like Adani Energy Solutions and Kalyan Jewellers, suggesting strategic pair trades to manage market risk while aiming for alpha.
On the other hand, Tina Banerjee takes a cautious stance on Alkem Laboratories Ltd, anticipating sluggish near-term performance. Despite reporting a modest 1% revenue growth in Q4FY24 and improved gross margins, Alkem’s outlook remains conservative with a guided 10% YoY revenue growth for FY25. Banerjee mentions stable API prices limiting further margin expansion for the company, recommending investors to consider booking profits amidst this operating environment.
A look at Alkem Laboratories Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts assessing Alkem Laboratories Ltd using the Smartkarma Smart Scores have outlined a positive long-term outlook for the pharmaceutical company. With a strong emphasis on resilience, Alkem has been given a top score of 5 in this category, indicating the company’s ability to weather uncertainties and challenges effectively. Additionally, Alkem scores well in the dividend and momentum categories, with scores of 4, showing a stable dividend track record and good momentum in stock performance.
While Alkem demonstrates promising growth potential with a score of 3 and maintains a decent valuation score of 2, indicating it may be undervalued in the market, its overall outlook remains favorable. As a pharmaceutical company that engages in the production and marketing of various pharmaceutical products, including generic and branded drugs, nutraceuticals, and herbal items, Alkem Laboratories Ltd appears to have a strong foundation for sustained success in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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