Alkem Laboratories Ltd Stock Analysis

BSE: 539523 | NSE: ALKEM | Pharmaceuticals & Drugs | Large Cap

BSE Share Price Jul 05, 17:49
3050.40 10.05 (0.33%)

DeciZen - Make an Informed Decision on Alkem Laboratories

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

FAQs

1. Is Alkem Laboratories Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Alkem Laboratories Ltd is a good quality company.

2. Is Alkem Laboratories Ltd undervalued or overvalued?

The key valuation ratios of Alkem Laboratories Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Alkem Laboratories Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Alkem Laboratories Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Alkem Laboratories:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Alkem Laboratories Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 18.3%17.4%13.7%10.4%16.9%20.5%14.5%14.1%19%20.4%-
Value Creation Index 0.60.60.2-0.10.30.80.30.30.70.8-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,9532,3282,7083,1383,8594,5485,2815,7146,6777,2208,830
YoY Gr. Rt. %-19.2%16.4%15.9%23%17.9%16.1%8.2%16.9%8.1%-
Adj EPS 3541.537.330.254.573.66065.7104.5138128.9
YoY Gr. Rt. %-18.6%-10.3%-19.1%80.7%35%-18.4%9.5%59%32%-
BVPS (₹) 159.4198.5233.4259.4301.1367.4408.7457.2525.3637.9731.3
Adj Net Profit 4194974453606528807187861,2501,6501,541
Cash Flow from Ops. 1185561062426304993187456821,324-
Debt/CF from Ops. 72.294.60.60.71.70.71.81-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 15.6%13.4%11%8.1%
Adj EPS 16.5%20.4%32%32%
BVPS 16.716.21621.4
Share Price - 10.7% 20.6% -6.1%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 24.523.217.312.219.52215.515.221.323.718.8
Op. Profit Mgn % 20.619.715.311.21919.318.918.422.22720.5
Net Profit Mgn % 21.421.316.511.516.919.313.613.818.722.917.5
Debt to Equity 0.40.50.30.40.10.10.10.10.20.20
Working Cap Days 149180185206180155162160156176308
Cash Conv. Cycle 33475453414145516276123

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 10.99%

Net Profit is growing at healthy rate in last 3 years 31.97%

Sales growth is good in last 4 quarters at 23.61%

Return on Equity has declined versus last 3 years average to 18.80%

Latest Financials - Alkem Laboratories Ltd.

Standalone Consolidated
TTM EPS (₹) 128.9 137.6
TTM Sales (₹ Cr.) 8,830 10,634
BVPS (₹.) 731.3 722.4
Reserves (₹ Cr.) 8,720 8,614
P/BV 4.16 4.21
PE 23.59 22.10
From the Market
52 Week Low / High (₹) 2835.00 / 4067.70
All Time Low / High (₹) 1175.00 / 4067.70
Market Cap (₹ Cr.) 36,352
Equity (₹ Cr.) 23.9
Face Value (₹) 2
Industry PE 30.6

Management X-Ray of Alkem Laboratories :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Login/Register to view analysis.

Analyst's Notes

Login/Register to view analysis.

News

About Alkem Laboratories Ltd

Alkem Laboratories is one of India’s largest generic and specialty pharmaceutical company. Also, it has consistently been ranked amongst the top ten pharmaceutical companies in India. Its portfolio includes illustrious brands like Clavam, Pan, Pan-D and Taxim-O, which feature amongst top 50 pharmaceutical brands in India. For over a decade, its dominance in anti-infective segment has remained unchallenged. Some part of its revenue is generated via offshore sales. The company has manufacturing facilities at multiple locations in India and the United States of America. Its upper-crest facilities are inspected and audited as per cGMP guidelines as laid down by leading regulatory authorities such as USFDA, MHRA - UK, SAHPRA-South Africa, TGA - Australia, ANVISA - Brazil, WHO - Geneva, TPD - Health Canada, PPB - Kenya, NDA - Uganda, MOH - Sudan, INVIMA - Colombia, TFDA - Tanzania, Zimbabwe, BfArM-Germany & Other Africa, Asian & CIS Countries.

Business area of the company

The company is one of India’s foremost global pharmaceutical company. The company is engaged in the development, manufacture and marketing of pharmaceuticals with operational footprints across different countries. In India, it has a formidable presence in several therapy segments and consistently features amongst the top ten pharmaceutical companies. Steered by its industry experience of over four decades, it offers high-quality branded generics, generic drugs, active pharmaceutical ingredients and nutraceuticals.

Awards and Recognition

2016:

  • Won the 'HR Tech Award for Best use of Technology in Human Resources' by World HRD Congress.
  • Won the Best Demand Planning and Forecasting Company - Pharmaceutical by ISCM's - SCMPro's in Demand Planning and Forecasting Forum Awards 2016.
  • Alkem-Pentacare division won the most enterprising company in leveraging technology in use of Mobile Applications by DigiPharmaX.
  • Brand 'Pan' received ‘Brand of the Year' award in sub-chronic category at AWACS Awards, 2016.
  • Alkem won the Guinness World Record for creating largest Blister Pack Mosiac at RSSDI Hyderabad.

2017:

  • Alkem Corporate Video won the 1st runners up award in the Best Corporate Film for driving Employee Engagement initiatives in the Mega Corporate Film Festival and Awards held in Mumbai.
  • Received the Best Stand-out IR award 2017 by IR Society India in association with KPMG and Bloomberg.
  • Won the People Matters league Awards - Learning & Development 2017 - Best in Cultural Transformation in Mumbai.
  • Won the Guinness world Records for creating largest Bindi Mosiac at RSSDI Bhubaneswar.
  • Won the Rising Digital Star of the Year for various digital initiatives by DigiPharmaX Awards 2017.

2018:

  • Best Innovative CSR Project at CSR Summit & Awards 2018.
  • Brand ‘Clavam’ received Brand of the Year 2018 Award at AWACS Awards for marketing excellence.
  • Business Excellence Award 2018 for Best Range of ICU Products, Pharma and Health Care Summit organized by CIMS (Current Index of Medical Specialties).

2019:

  • Express Pharma Excellence Award at Pharma CXO Summit 2011.
  • Best Use of Technology in Sales Hiring by Global Eminence Digital Awards sponsored by AQUILAA.

2020:

  • CIO Conclave and Awards 2020 in the category ‘Best IT Team of the year’.
  • Alkem Laboratories as Great Place to Work-Certified organization in the large organization category across industries.
  • India's Best Workplaces in Biotechnology & Pharmaceuticals.

Milestones

  • 1973: Inception of Alkem Laboratories.
  • 1978: First manufacturing unit was established at Taloja near Mumbai.
  • 1992: Second manufacturing facility established at Mandva, Gujarat which was converted into an API facility in 2005.
  • 2003: First research and development facility established at Taloja.
  • 2006: Taxim became India’s first anti-infective drug to surpass annual sales figure of ` 1,000 million in the domestic market.
  • 2007: Filed the first ANDA in the United States for the drug Amlodipine.
  • 2009: Received the first ANDA approval in the United States for the drug Amlodipine.
  • 2009: Acquired Pharmacor Pty. Ltd., a generic pharmaceutical company in Australia.
  • 2010: Acquired Ascend Laboratories, pharmaceutical company in the United States.
  • 2011: Acquired Enzene, a company engaged in the development of biosimilars in India.
  • 2012: Acquired an API manufacturing facility in the United States.
  • 2014: Acquired the ‘Clindac-A’ brand in India from Galderma S.A.
  • 2014: Clavam surpassed Rs 2,000 million domestic sales figure.
  • 2015: Acquired a formulation manufacturing facility in the United States.
  • 2015: Successfully completed Initial Public Offering (IPO).
  • 2018: Revenue from the US market crossed $ 200 million in annual sales.
  • 2019: Crossed the revenue milestone of $1 billion.
Read More Read Less