bullish
Alkem Laboratories Ltd (ALKEM IN): Further Upside on Card on US Business and Margin Improvement
405 Views12 Dec 2023 11:30
SUMMARY
- Alkem Laboratories Ltd (ALKEM IN) is flying high on strong Q2 numbers. The shares rallied 23% since the company announced Q2FY24 result in early November, widely outperforming Nifty Pharma index.
- In Q2FY24, revenue grew 12% YoY, and gross margin expanded 380bps to 61.4% backed by lower raw material cost and lower intensity of price erosion in US market.
- For the U.S. business, Alkem is looking at high-single-digit growth in dollar terms for FY24. The company has reiterated FY24 gross margin guidance at 59.0–59.5%.
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Tina Banerjee
Global Healthcare Analyst
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