Shares of pharmaceutical company Alkem Laboratories today jumped as Nomura has given ‘buy’ rating.

The stock gained as much as 4.2 per cent as Nomura has rated the company’s stock as “buy’’ with a target price of Rs 1,635.

Alkem is a play on the long-term steady growth in India’s formulation market, which contributes 75 per cent of its consolidated revenue in FY15, says Nomura.

The stock is down 7.5 per cent this year but is still up 31 per cent from its issue price of Rs 1,050.

The company made debut on the Indian bourses on December 23, 2015.