Nomura has maintained its buy rating on Alkem Laboratories and raised the target price to ₹6,300, citing a recovery in domestic growth and strong prospects for its subsidiary Enzene as key drivers. The brokerage said Alkem has gained meaningful traction in recent anti-diabetes product launches following patent expiries and now intends to participate in the first wave of GLP-1 receptor agonist (GLP-1RA) opportunities, which could expand its therapeutic portfolio further.
Enzene is expected to be a critical growth lever, with revenues forecast to rise to ₹8 billion by FY28 from ₹3.6 billion in FY25. Nomura, however, cautioned that profitability from Enzene may remain limited in the near term due to higher overhead costs associated with contract development and manufacturing operations. Even so, the brokerage believes Enzene offers strong strategic potential in biologics and biosimilars, enhancing Alkem’s long-term positioning.
Nomura said Alkem’s valuation remains reasonable, with the stock trading at 26.1 times, 30.1 times, and 25.4 times estimated earnings for FY26, FY27, and FY28 respectively. It added that the combination of steady domestic recovery, new product launches, and scaling of Enzene supports a constructive view on the stock.
Disclaimer: The views and recommendations made in this article are those of Nomura. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.