Midcap Pharma Stock Declared Interim & Special Dividends, Fixed Record Date, Should You Buy?

Alkem Laboratories Ltd, a pharma sector midcap stock, has declared Interim and Special Dividends for the Financial Year ending March 2023. The stock in the past 1 month witnessed a jump in its share price. It has a market valuation of Rs 38,858.63 crore. Here are the details about the stock:

Alkem Laboratories Ltd. - Interim & Special Dividend

The company in its exchange filing on 10 February 2023, has said, "This being the 50th year of incorporation of the Company, the Board of Directors have at its meeting held today, i.e. 10th February, 2023, declared a Special Dividend of Rs. 25/- (Rupees Twenty-Five only) per equity share having a face value of Rs. 2/- per share for the financial year 2022-23. In addition to the same, the Board has declared an Interim Dividend of Rs. 15/- (Rupees Fifteen only) per equity share having a face value of Rs. 2/- per share for the financial year 2022-23 amounting to a total Interim Dividend of Rs. 40/- (Rupees Forty only) per equity share (2000% on the face value of Rs. 2/- per share). The date of payment of Dividend (Interim and Special) shall be on and from O 1st March, 2023. Further, as informed vide our letter dated 24th January, 2023 submitted to the Stock Exchanges pursuant to Regulation 42 of the Listing Regulations, the record date for the purpose of payment of Dividend (Interim and Special) for the financial year 2022-23 would be Saturday 18th February, 2023." 

 

Alkem Laboratories Ltd. - Stock Performance

The current market price of the stock on NSE is Rs 3,227.90 apiece, trading 1.97% down as compared to its previous close. It recorded its 52 week low on 16 May 2022 at Rs 2,828 apiece and 52 week high on 30 March 2022 at Rs 3,724.95 apiece, respectively.

The stock jumped 5.5% in the past 1 week. In the past 1 month, it gained 7.01%. In the past 1 year, it has fallen 5.66%. It gave 23.79% positive return in 3 years. In 5 years it gave 48.39% positive return.

Motilal Oswal Maintains Neutral with a target price of Rs 3,530/share

According to the brokerage, Alkem Lab (ALKEM) delivered a strong beat in 3QFY23 as EBITDA/PAT exceeded our estimates by 26%/22%, led by controlled costs and a higher off-take of seasonal products in the US generics segment. The execution was superior in the domestic formulation (DF) segment, with a healthy outperformance compared to the industry. "We raise our FY23E EPS by 3% and maintain FY24E/FY25E EPS. We continue to value ALKEM at 21x 12M forward earnings to arrive at a TP of INR3,530. Due to business headwinds like pricing pressure in the US and higher operational costs, we expect a 22% YoY earnings decline in FY23. However, with cost saving measures, improving MR productivity and a healthy ANDA pipeline for US generics, we expect a 29% earnings CAGR over FY23-25. We maintain Neutral on the stock as the current valuation offers limited upside," the brokerage has said.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.