Is anyone covering this.
I went through the last concall of Alkem Labs.
My understanding is that they are looking to grow at par or better than Indian Pharma. Chronic is growing well and Acute is helping (though there is some seasonality). The raw materials prices are stable and helping recovery of bottomline. Biosimilars division is tiny and not expected to impact topline significantly atleast for another few years. US price erosion has come down to single digits now (earlier double digits). No major capex in sight except for an investment in the US. They are doing very well in ROW markets and expect to continue to do so.
Currently price at around 35 times earnings, I expect nothing extraordinary going forward - maybe 10-15% (at or above Indian Pharma growth). They had a great 2020 and 2021 due to uptick in Acute business; and not so good 2022 due to increase in raw materials prices and price erosion, etc. They expect Chronic segment (around 10% higher margin than Acute) contribution and debottlenecking to help improve margins (minor) going forward.
Yesterday there was a news with allegations of 1000 cr tax evasion against the company (read on social media, not reliable) and therefore the price dopped by 6% however they came out with clarification that this is completely false, and nothing to worry about.
I am waiting to see how the India Pharma and ROW story pans out - though I do not expect great returns from here (but who knows). It is only a small part of my portfolio and no transactions in the last 6 months. Sitting at much lower prices hence the cushion to wait and watch.