ICICI Securities has issued a buy recommendation for Alkem Laboratories with a target price of ₹6,500 in its research report dated February 15, 2026. According to the brokerage's analysis, the recommendation is based on 20x FY28E EV/EBITDA valuation multiple. The stock recommendation comes as part of ICICI Securities' broader coverage of pharmaceutical sector opportunities.
Alkem Laboratories reported decent numbers in Q3FY26 led by its international operations, as reported by ICICI Securities. The company's domestic business growth slowed to 5.6% YoY, impacted by inventory stocking from the previous year and deceleration in trade generics. However, management remains confident of achieving double-digit growth in FY26, with 9MFY26 growth at approximately 10%.
The company has announced plans to acquire Occlutech's medical technology business for EUR 90-95 million investment, according to ICICI Securities research. This acquisition is in early stages and would require efforts to scale up geographical reach and new product launches. Management has set an ambitious target of achieving sales of ₹10 billion in 3-5 years from the medtech business.
ICICI Securities projects that the CDMO plant may achieve revenue of ₹4.5-5 billion in FY28. However, the brokerage notes that implementation of MIP on Pen-G and derivatives with an impact of ₹800-1,000 million and overheads of new ventures may impact margins. Despite these challenges, the research maintains its buy rating on the stock.
