Jefferies has issued an “Underperform” rating on Alkem Laboratories, setting a target price of ₹5,080 per share. According to the management, boosting operational margins is the company’s top priority in the near term. However, the investments Alkem is making in new areas are expected to take 2-3 years to yield results.
The new management team at Alkem has outlined a strategy focused on pursuing profitable growth, which will be driven by its business in India, emerging markets (EM), and contract development and manufacturing organization (CDMO) segments. Additionally, the company aims to be more active in mergers and acquisitions (M&A) and in-licensing opportunities as part of its growth plan.
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