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Business Upturn
5 days ago
- Business
- Business Upturn
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. Markets Desk at
Business Upturn
23-05-2025
- Business
- Business Upturn
HSBC cuts trims Sun Pharma target price to Rs 1,870 on cost spike from specialty launches
By Markets Desk Published on May 23, 2025, 08:10 IST HSBC has maintained its 'Buy' rating on Sun Pharma but lowered its target price to ₹1,870, following a miss in Q4 earnings and the company's announcement of $100 million in additional costs for new specialty product launches in FY26. Sun Pharma's Q4FY25 net profit dropped 19% YoY to ₹2,153.9 crore, while EBITDA grew 22.4% to ₹3,715.9 crore. Margin expansion to 28.7% was aided by cost discipline, but profitability was hit by a ₹361.6 crore exceptional loss. The company has announced the launch of Leqselvi in Q2FY26, and expects increased costs associated with Unloxcyt and the closure of its Checkpoint deal, both of which are critical to expanding its specialty portfolio. HSBC warned that these additional investments will likely hit EBITDA margins in the near term, but the spend is considered crucial for long-term growth in high-value, less competitive segments. The brokerage views the current weakness as a temporary trade-off to build durable revenue streams. Disclaimer: This article is based on the brokerage report by HSBC. It does not constitute investment advice. Markets Desk at
Business Upturn
23-05-2025
- Business
- Business Upturn
Citi maintains ‘Buy' on Sun Pharma post Q4 with target price of Rs 2,220; bets on specialty push despite EPS cut
By Markets Desk Published on May 23, 2025, 08:08 IST Citi has maintained its 'Buy' rating on Sun Pharmaceutical Industries with a target price of ₹2,220, noting that Q4FY25 results were largely in line with expectations. The brokerage remains optimistic about Sun's strategic pivot toward specialty therapies despite short-term EPS dilution. Sun Pharma reported a 19% year-on-year decline in net profit to ₹2,153.9 crore, impacted by an exceptional loss of ₹361.6 crore. However, operationally, the company delivered solid growth — EBITDA rose 22.4% YoY to ₹3,715.9 crore, with margin expanding to 28.7% from 25.3% last year. Citi pointed out that strength in India and emerging markets offset weakness in the US generics portfolio. Specialty revenue softness was anticipated due to channel filling and milestone-driven upsides in Q3, which had been flagged by the management earlier. Citi was encouraged by management's positive commentary on the Most Favored Nation (MFN) pricing impact, which had been seen as a key overhang for the sector. While Sun's FY26 revenue guidance of mid-to-high single-digit growth reflects caution in light of regulatory and geopolitical uncertainties, the planned $100 million investment in launches like Leqselvi and Unloxcyt signals a ramp-up in the specialty business. Despite a 6% cut in FY26 EPS estimates, Citi believes the investments are necessary to build long-term value. Disclaimer: This article is based on the brokerage report by Citi. It does not constitute investment adv Markets Desk at
Business Upturn
23-05-2025
- Automotive
- Business Upturn
Bajaj Auto's KTM acquisition has near-term risks but offers long-term upside potential, says Nomura
By Markets Desk Published on May 23, 2025, 08:21 IST Nomura has retained its 'Neutral' rating on Bajaj Auto with a target price of ₹9,413 after the company announced a significant strategic investment of EUR 800 million (approx. ₹7,200 crore) into KTM AG, its long-time European partner. The investment will be routed through BAIHBV, a wholly owned subsidiary of Bajaj Auto, and is intended to give Bajaj controlling ownership in KTM, subject to necessary regulatory approvals. Nomura stated that while this move could strengthen Bajaj Auto's global premium motorcycle portfolio and deepen its technological capabilities, it introduces near-term risks. These include regulatory hurdles, integration complexity, and margin pressure from an overseas business that operates in a more competitive environment. The brokerage sees long-term strategic upside in the deal, particularly from supply chain synergies, enhanced global distribution, and scale benefits in R&D. However, until there is more clarity on the post-acquisition structure, financial impact, and execution plan, Nomura remains cautious in the near term. Disclaimer: This article is based on the brokerage report by Nomura. It does not constitute investment advice. Investors are advised to consult their financial advisors before making any investment decisions. Markets Desk at
Business Upturn
21-05-2025
- Business
- Business Upturn
Macquarie maintains ‘Outperform' call on BEL after Q4 results beat estimates, confident in FY26 margin expansion
By Markets Desk Published on May 21, 2025, 08:25 IST Macquarie has reiterated its 'Outperform' rating on Bharat Electronics Ltd (BEL) with a target price of ₹400, calling the Q4FY25 performance a strong finish to the year. The company's robust order book and margin expansion guidance have improved near-term visibility, despite a delay in the QR-SAM order. BEL reported an 18.4% YoY rise in net profit to ₹2,127 crore, with revenue up 6.8% to ₹9,149.6 crore. EBITDA surged 23.2% YoY to ₹2,816 crore, with margin expanding to 30.8% from 26.7%. Macquarie noted that EBITDA and PAT beat consensus estimates, driven by stronger operating leverage and cost control. FY26 margin guidance came in better than expected, and Macquarie sees BEL's past R&D and long-standing defence relationships as increasingly productive. Disclaimer: This article is based on the brokerage report by Macquarie. It does not constitute investment advice. Markets Desk at
