Target: ₹6,533CMP: ₹5,300Alkem Laboratories has built leadership across large acute therapies, supported by established brands and a strong prescriber franchise. Increasing focus on chronic and specialty therapies should improve the quality and consistency of domestic growth while reducing seasonality. Investments across anti-diabetes, cardiac and CNS should improve the portfolio mix, while its semaglutide entry strengthens the diabetes franchise and provides participation in one of India’s largest markets for a single pharma product.Its US business has largely stabilised following the prolonged generic price-erosion cycle. A selective approach to new launches and differentiated products should support steady pick-up in the business. We expect upcoming launch of gJynarque (Tolvaptan) to be a key growth driver.Alkem has expanded its business into medical devices in orthopaedics and cardiovascular areas through small domestic acquisitions. It is further adding to the franchise through the proposed acquisition of Swiss-based Occlutech. Enzene BioSciences is Alkem’s new venture into biologics CDMO platform. These ventures are loss-making currently, but we expect them to break even in the next four-eight quarters and both could emerge as meaningful medium-term growth engines.Alkem trades at 32.3x FY27E and 25.0x FY28E core EPS, adjusted for cash per share. We initiate coverage with a BUY rating and a TP of ₹6,533, which is 26.5x FY29E core earnings plus cash per share. Published on September 1, 2026