7 days ago
Nomura maintains ‘Buy' on Alkem Labs; expects Semaglutide launch to drive future growth
By Markets Desk Published on May 30, 2025, 07:46 IST
Nomura has reiterated its Buy rating on Alkem Labs with a target price of ₹5,430, viewing the Q4FY25 earnings as largely in line on sales, though EBITDA and PAT came in 2% and 6% below estimates, respectively.
The company's FY26 guidance is described as a mixed bag. One key concern is an expected rise in effective tax rate (ETR) to 35–37% in FY27E, which is significantly higher than Nomura's current 20% assumption. While this will negatively impact reported earnings, cash flows remain unaffected, as cash tax will stay around 17–18%.
On the operational front, domestic formulations are expected to grow ~100bps ahead of the market in FY26. The company also expects to be in the first wave of Semaglutide launches in India by March 2026, which could be a major growth driver.
Disclaimer: The views and target prices mentioned in this article are as stated by Nomura. They do not represent the opinions or recommendations of this publication. Readers are advised to consult their financial advisors before making any investment decisions.
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