Block deal worth Rs 825 crore in Alkem Labs may see 1.42 percent equity change hands

Jayanti Sinha, one of the major shareholders in Alkem Labs, is set to offload a 1.42 percent stake in the company via a block deal.

Pharmaceuticals company Alkem Labs is likely to see a block deal on June 4 through which Jayanti Sinha, one of the major shareholders, is set to offload a 1.42 percent stake in the company, CNBC-TV18 has reported citing sources.

The transaction, valued at approximately Rs 825 crore, is likely to take place tomorrow at a floor price of Rs 4,850 per share, which is at a 3 percent discount to the last traded price.

Axis Capital will act as the broker for the deal, said CNBC-TV18.

Alkem Labs had reported a 4.2 percent on-year (YoY) rise in fourth-quarter net profit at Rs 305.9 crore, with revenue from operations growing by 7.1 percent on-year to Rs 3143.8 crore. However, the EBITDA margin contracted to 12.4 percent from 13.7 percent a year ago, which led to the disappointment among investors.

"...we expect the EBITDA margins to remain similar as far as this financial year is concerned. Though we will get operating leverage on our basis, the growth that we will have record in the coming financial year. But we are making certain investments in R&D for certain markets where we want to expand. So that is the reason overall our EBITDA guidance in terms of percentage would be stable at 19.5 for this financial year," Vikas Gupta, CEO, Alkem Labs said during the March quarter earnings call.

Nomura has kept a 'Buy' call on Alkem Labs with a target price of Rs 5,430 per share, showing a marginal upside potential. Read More

Jefferies issued an 'underperform' call on Alkem Labs with a target price of Rs 4,460 per share, implying a downside potential of over 16 percent. However, it noted that the company is now pivoting towards accelerating growth after 18 months of margin improvement. Alkem Labs has guided for high-single digit growth in overall revenue for FY26, and double-digit growth for FY27.