Nomura has maintained a Neutral rating on Alkem Labs, with a revised target price of ₹6,097 per share, reflecting a 9.6% increase from the current market price (CMP) of ₹5,565.15. The company anticipates slower topline growth but expects margins to improve in FY25. Alkem’s volume growth has been impacted by contract losses and supply chain issues, and it forecasts its U.S. business to decline by a mid-single digit percentage year-over-year in FY25. The company now expects FY25 revenue growth in the mid-single digits, down from an earlier projection of 10%, with margin expansion projected at 100 basis points YoY to reach 18.5-19.0%, supported by lower material costs and new business overheads.
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