India's Alkem Lab falls most in over 3 years on weak domestic business

Alkem Laboratories

11/08/2023 08:56

** Shares of Alkem Laboratories Ltd  ALKE.NS  fall as much
as 7.5% to 3,830.05 rupees, their biggest intraday pct loss
since May 2020
    ** The pharmaceutical firm on Thursday reported consolidated
net profit more than doubled to 2.87 billion rupees ($34.68
million) on strong sales in the United States
    ** Still, India business was slower than industry average
growth due to delayed monsoons - ALKE in a statement
    ** Sluggish domestic revenue growth to limit margin
expansion potential in near term - analysts at Ambit Capital
("sell," PT: 2,700 rupees)
    ** Increased sales, general & administrative costs may lead
to slower-than-expected margin expansion and pose downside risk
- Jefferies ("underperform," PT: 3,550 rupees)
    ** Stock up ~29.1% so far this year


    ($1 = 82.7580 Indian rupees)

 (Reporting by Biplob Kumar Das in Bengaluru)
 ((Biplobkumar.das@thomsonreuters.com))