X

Alkem Laboratories Ltd Stock Analysis

Large Cap
Evaluated by 1538 users | BSE: 539523 | NSE: ALKEM |
Pharmaceuticals & Drugs

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...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 19.42%18.34%17.39%13.71%10.35%16.93%20.51%14.53%14.13%18.91%
Value Creation Index 0.490.410.340.05-0.200.300.580.120.090.45
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,6521,9532,3282,7083,1383,8594,5485,2815,7146,677
Y-o-Y Gr. Rt.-18.2%19.2%16.4%15.9%23%17.9%16.1%8.2%16.9%
Adjusted EPS (Rs.) 26.3635.0241.5337.2630.1554.4973.5860.0365.73104.52
Y-o-Y Gr. Rt.-32.9%18.6%-10.3%-19.1%80.7%35%-18.4%9.5%59%
Book Value per Share (Rs.) 126.11159.37198.54233.35259.39301.09367.43408.65457.15525.34
Adjusted Net Profit 3154194974453606528807187861,250
Net Op. Cash Flow (Rs. Cr.) 838118556106242630499318745682
Debt to Cash Flow from Ops 0.8772.239.044.560.60.741.720.681.85
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Alkem Laboratories Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 16.8%16.3%13.7%16.9%
Adjusted EPS 16.5%28.2%12.4%59%
Book Value per Share 17.215.212.714.9
Share Price - 20.1% 13.8% 21.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 23.2324.5323.2117.2512.2419.4522.0215.4715.1921.28
Operating Profit Margin (%) 18.8320.619.7315.3311.1718.9519.3418.9318.4122.2
Net Profit Margin (%) 19.0721.4321.3316.4511.4916.8919.3413.5913.7518.72
Debt to Equity 0.490.440.520.340.360.110.080.110.090.2
Working Capital Days 119149180185206180155162160156
Cash Conversion Cycle 24334754534141455162
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 60.16%
Institutions 17.62%
Non-Institutions 22.22%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Alkem Laboratories Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Alkem Laboratories Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Alkem Laboratories Ltd's performance infers:

Alkem Laboratories Ltd earnings have grown by 28.2%, whereas share price has appreciated 20.1% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

Data is not available for this company

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

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

Callback