Block deal: Alkem Labs shares in focus as promoter Jayanti Sinha sells entire stake; buyers revealed

Shares of Alkem Laboratories Ltd are in focus on Wednesday after promoter Jayanti Sinha sold her entire holding of 12,38,220 shares, or 1.04 per cent stake, in the drug maker at an average price of Rs 5,200 per share, amounting to Rs 643.87 crore. Alkem Laboratories operates in the acute therapeutic segment and is also a fast-growing player in the chronic therapeutic segment. 

Data showed Samprada & Nanhamati Singh Family Trust was also a seller, offloading 5,50,000 shares for Rs 286 crore. 

Buyers included Goldman Sachs Bank Europe, Societe Generale, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Morgan Stanley Asia Singapore PTE, DSP Mutual Fund, Edelweiss Mutual Fund and BNP Paribas Arbitrage ODI, among others. 

Data showed Goldman Sachs Bank Europe, Edelweiss MF, Morgan Stanley Asia Singapore PTE, Nippon India MF and BNP Paribas Arbitrage bought 48,090 shares each. ICICI MF and HDFC MF were big buyers, acquiring 9,03,527 shares and 5,09,615 shares, respectively. 

Choice Institutional Equities had on May 29 cut its target on Alkem Labs on likely moderation in margin. It said revenue is expected to grow for Alkem Labs in low-to-mid-teens levels, driven by new launches and scale-up of recent acquisitions but margin expansion is likely to moderate. 

Upcoming launches including Valsartan, Tolvaptan and select biosimilars should help offset pricing headwinds, it said while anticipatinh Ebitda margin for Alkem Labs in the range of 20–21 per cent for FY27E, with a further 100 basis points (bps) expansion likely in FY28E.
 
"We revise FY27/28E EPS estimate downwards by 7.3 per cent/7.8 per cent, respectively, and continue to value the stock at 25 times FY28E EPS. Our revised target stands at Rs 5,755 (earlier Rs 5,995). We also see incremental upside potential from the successful ramp-up of the Medtech and CDMO verticals," i said.