Rs 35/Share Dividend: Blue Chip Pharma Stock Sets Record Date; Buy?

Alkem Laboratories is a large-cap pharma company that ended today at a market cap of Rs 61,574.18 Cr on BSE. Mumbai serves as the corporate headquarters of the global Indian pharmaceutical company Alkem Laboratories Limited. The firm has established a presence in more than 40 countries and is among the largest generic and speciality pharmaceutical companies in India. It has 19 production sites spread across multiple locations in the US and India.

Alkem Laboratories Dividend

The Board of Directors "Declared an Interim Dividend of Rs. 35/-(Rupees Thirty Five only) per equity share on the face value of Rs. 2/-per share for financial year 2023-24 pursuant to Regulation 43 read with Regulation 30 of Listing Regulations. The date of payment of Interim Dividend shall be on and from 01st March, 2024. Further, as informed vide our letter dated 01 st February, 2024, submitted to the Stock Exchanges pursuant to Regulation 42 of the Listing Regulations, the record date for the purpose of payment of Interim Dividend for financial year 2023-24 would be Saturday, 17th February, 2024," said Alkem Laboratories in a stock exchange filing.

Alkem Laboratories Financials

On a standalone basis, the company reported net sales of Rs 2,494.59 crore in the December 2023 quarter up 8.62% from Rs. 2,296.72 crore in the December 2022 quarter. A 29.66% rise from Rs. 388.89 crore in Q3FY23 to Rs. 504.23 crore in Q3FY24 was its net profit. EBITDA reached Rs. 664.92 crore in the quarter under review up 28.68% from Rs. 516.71 crore in the year-ago quarter.

Commenting on the results, Dr Vikas Gupta, CEO, Alkem said "Continuing our trend of improved performance, Q3 builds on the momentum gained in H1 with significant gross margin enhancements backed by lower raw material cost and lower intensity of price erosion in US market resulting in improved EBITDA margins. Our domestic business has outperformed IPM growth by 20bps. Our international business has delivered steady growth, although US business de-grew on back of high base of last year led by flu season. In Non-US business across geographies, we achieved a very healthy growth. Our biosimilars business is performing impressively and witnessing significant traction in the domestic biosimilars market with Enzene's portfolio of 7 products. We are committed to carrying forward the momentum of better operational performance, building on our recent successes."

Alkem Laboratories Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said ALKEM is currently trading at Rs 5117. After reaching an all-time high of Rs 5420, profit booking from the higher side has been observed. The price is currently holding the Rs 4900 level, which serves as immediate support. If the price closes above the Rs 5320 level, it suggests the possibility of further upward movement, with a potential target around Rs 5555. On the downside, substantial support is identified near Rs 4900.

A prudent strategy involves considering buying opportunities on market dips at levels around Rs 5050. Immediate support is found near Rs 4900, while on the flip side, Rs 5250 and Rs 5300 act as resistance levels.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 4900 to protect the investment in case of an unexpected market reversal. In summary, considering the technical analysis and prevailing market conditions, ALKEM appears to present a promising buying opportunity for those targeting a Rs 5555 price objective, contingent upon the implementation of prudent risk management measures.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.