Neutral Alkem Lab; target of Rs 5525: Motilal Oswal

Motilal Oswal recommended Neutral rating on Alkem Lab with a target price of Rs 5525 in its research report dated February 18, 2026.

Broker Research

February 19, 2026 / 12:09 IST

Neutral

Motilal Oswal's research report on Alkem Lab

Alkem Lab (ALKEM) is advancing its MedTech strategy through the acquisition of up to a 55% stake in Occlutech for ~EUR99m (~INR10.6b), gaining control of a specialist in minimally invasive devices for congenital heart disease, stroke prevention, and heart failure. Occlutech is a leading structural heart and closure device company with over 10 product lines, presence in more than 70 countries, manufacturing in Germany and Turkey, and over 200,000 devices sold; it ranks as the thirdlargest player in the global occluder segment. The company has delivered ~17% revenue CAGR over CY22–24 (EUR43m in CY24; ~EUR49m est. CY25), with CY25 revenue/EBITDA/loss at ~EUR49m/EUR2m/EUR6.8m; margins remain in single digits (~5%), with the company targeting expansion to ~23–24% over the next 3–4 years. The transaction aligns with ALKEM’s broader MedTech focus on musculoskeletal and cardiovascular segments within a large global opportunity (USD680b MedTech; USD87b Cardiovascular), where it has already established a base in orthopedics through a hybrid entry model and the Bombay Ortho acquisition.

Outlook

ALKEM is diversifying its growth levers into the MedTech and CDMO space, in addition to its domestic formulations segment. On an overall basis, we expect 10.5%/12% CAGR in revenue/EBITDA over FY26-28. Earnings are expected to remain stable over FY26-28 due to a step-up in tax rate. The valuation adequately factors in the upside. Reiterate Neutral on the stock.

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