Pharma Stock in Focus as SBI Mutual Fund Buys Shares Worth Rs.300 Crore in a Big Deal
India’s fifth largest pharmaceutical company, which is well known for its strong presence in medicines for infections, digestion, pain relief, and supplements, is catching the attention of people. This happened after SBI Mutual Fund purchased its shares worth about Rs.300.3 crore through a bulk deal.
Having a market value of Rs.54,966 crores, Alkem Laboratories Limited’s shares reached a high of Rs.4,621.7 during the day. This is 0.4% higher as compared to its last closing price of Rs.4,605.65.
In the past one year, the stock has shown negative returns of 9.3% as well as upto 9% returns in the last one month.
According to the latest available block deal with the NSE, SBI Mutual Fund has purchased almost 6.41 lakh equity shares, worth a 0.5 percent holding in Alkem Laboratories, in an open market transaction for approximately Rs.300.3 crores, at Rs.4,680 per share on average.
The firm invested in a 100% stake in Adroit Biomed Limited through a binding term sheet for Rs.140 crores paid in two tranches.
The acquisition is for expansion in the dermatology and cosmetology segments in the following ways: expansion in the portfolio, improved market reach and penetration, and Omni Channel presence.
Alkem Lab posted modest growth in revenue from operations, witnessing a year-over-year rise of close to 1.5 percent, from Rs.3,323.8 crores in Q3 FY24 to Rs.3,374.3 crores in Q3 FY25.
Similarly, in the same period, the net profit of the company grew from Rs.595 crores to Rs. 626 crores, up by around 45 percent YoY.
EBITDA in Q3 FY25 was up 7.3 percent YoY to Rs.760 crores, from Rs.707.6 crores in Q3 FY24, and the operating EBITDA margins were also up at 22.5 percent, from 21.3 percent, during the same period.
Established in 1973, Alkem Laboratories Limited is a major Indian pharmaceutical firm and the fifth largest pharma company in the Indian pharmaceutical market, with commanding leadership in the therapy segments of anti-infectives, gastrointestinal, pain management medicines and supplements.
The firm is in the business of pharmaceuticals with global operations, as well as pharmaceutical product development, production and marketing.
