At the CMP, the stock trades at a P/E of 34.6x. We are recommending a buy in staggered manner for medium to long term, says Sumit Bilgaiyan of Equity99.
Alkem Laboratories has reported excellent results for Q1FY19. Its sales and EBITDA grew by 27.19 percent YoY and 86.08 percent YoY, respectively, while PAT increased by 90.26 percent to 136.15 crore. EBITDA margins in Q1FY19 were at 14 percent vs 9 percent in Q4FY18 and 9 percent in Q1FY18. It has paid 650 percent dividend for FY18.
With tiny equity of just Rs 23.91 crore, company has huge reserve of around Rs 4,839.86 crore. In August, company has successfully cleared the USFDA inspection at Baddi plant.
At the CMP, the stock trades at a P/E of 34.6x. We are recommending a buy in staggered manner for medium to long term.
Disclaimer: The author is Founder of Equity99. The views and investment tips expressed by investment experts on Moneycontrol are their own, and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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