Alkem Laboratories Ltd - Stock Valuation and Financial Performance

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

Alkem Laboratories Share Price

6,183.75 24.50 0.40%
as on 04-Oct'24 10:16

DeciZen - make an informed investing decision on Alkem Laboratories

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Alkem Laboratories stock performance -

mw4me loader
P/E Ratio (SA):
35.77
Market Cap:
73,643.1 Cr.
52-wk low:
3,440.1
52-wk high:
6,440

Is Alkem Laboratories Ltd an attractive stock to invest in?

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 Overvalued zone.

3. Is Alkem Laboratories Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Alkem Laboratories Ltd is likely to Rise 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'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 11.8%21.9%21%19%17.1%20.5%23.4%18%13.2%17.9%-
Value Creation
Index
0.10.60.90.70.50.81.10.60.20.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 3,1383,8594,5485,2815,7146,6777,2208,8309,0559,7489,995
Sales YoY Gr.-23%17.9%16.1%8.2%16.9%8.1%22.3%2.6%7.7%-
Adj EPS 30.259.273.860.365.7104.5138126.893.1147.8172.2
YoY Gr.-96.4%24.7%-18.3%9%59%32%-8.1%-26.6%58.8%-
BVPS (₹) 259.4301.1367.4408.7457.2525.3637.9731.4782.1882.9931.5
Adj Net
Profit
3607088837217861,2501,6501,5161,1131,7672,059
Cash Flow from Ops. 2426304993187456821,3241,2991,4371,687-
Debt/CF from Ops. 4.60.60.71.70.71.811.70.80.6-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 13.4%11.3%10.5%7.7%
Adj EPS 19.3%17.6%2.3%58.8%
BVPS14.6%14.1%11.4%12.9%
Share Price - 26.2% 15.9% 77.8%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
12.221.122.115.515.221.323.718.512.317.819
Op. Profit
Mgn %
11.21919.318.918.422.22720.515.320.222.5
Net Profit
Mgn %
11.518.419.413.713.818.722.917.212.318.120.6
Debt to
Equity
0.40.10.10.10.10.20.20.30.10.1-
Working Cap
Days
206180155162159156175178184203138
Cash Conv.
Cycle
5341414551627680816084

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 19.00%

Sales growth is growing at healthy rate in last 3 years 10.53%

Net Profit has been subdued in last 3 years 2.32%

Sales growth is not so good in last 4 quarters at 8.08%

Latest Financials - Alkem Laboratories Ltd.

Standalone Consolidated
TTM EPS (₹) 172.2 171.8
TTM Sales (₹ Cr.) 9,995 12,732
BVPS (₹.) 931.5 906.9
Reserves (₹ Cr.) 11,114 10,819
P/BV 6.61 6.79
PE 35.77 35.85
From the Market
52 Week Low / High (₹) 3440.05 / 6440.00
All Time Low / High (₹) 1175.00 / 6440.00
Market Cap (₹ Cr.) 73,643
Equity (₹ Cr.) 23.9
Face Value (₹) 2
Industry PE 47.7

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

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Analyst's Notes

Key Ratios of Alkem Laboratories

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales3,1383,8594,5485,2815,7146,6777,2208,8309,0559,748
Operating Expenses 2,7923,1393,6704,3084,6685,2095,2717,0197,6787,783
Manufacturing Costs3884956546866517047371,0819511,107
Material Costs1,1621,2811,4381,7391,9912,2292,3083,0143,3673,263
Employee Cost 5616277228629601,0671,1591,4341,5161,560
Other Costs 6827358551,0211,0671,2091,0661,4901,8431,852
Operating Profit 3467208789731,0461,4681,9491,8101,3771,965
Operating Profit Margin (%) 11.0%18.7%19.3%18.4%18.3%22.0%27.0%20.5%15.2%20.2%
Other Income 1822511171016896190200266306
Interest 73592432283943388682
Depreciation 607476108141187199219230244
Exceptional Items 000000-1300-64
Profit Before Tax 3958398949349441,3381,8841,7531,3271,881
Tax 281391121814474199212193134
Profit After Tax 3687008837168001,2641,6851,5411,1341,747
PAT Margin (%) 11.7%18.1%19.4%13.6%14.0%18.9%23.3%17.5%12.5%17.9%
Adjusted EPS (₹)30.858.673.959.966.9105.8141.0128.994.9146.1
Dividend Payout Ratio (%)13%22%20%22%24%24%21%26%53%27%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 3,1013,6004,3934,8855,4656,2807,6268,7449,35010,555
Share Capital 24242424242424242424
Reserves 3,0773,5764,3694,8615,4416,2577,6028,7209,32610,531
Minority Interest0000000000
Debt1,0743513685485031,2091,3332,2461,126957
Long Term Debt28006660000
Short Term Debt1,0463513685414971,2031,3332,2461,126957
Trade Payables3474676858197548129531,1111,0761,571
Others Liabilities 339-4-139-15-67-15-932094-332
Total Liabilities 4,8614,4135,3076,2366,6568,2879,81812,12011,64612,751

Fixed Assets

Gross Block1,1569451,2631,7141,9732,3522,4572,8272,9323,144
Accumulated Depreciation286701372433675156999451,1071,321
Net Fixed Assets8708751,1261,4711,6061,8371,7581,8821,8251,824
CWIP 9614721829938231432323222991
Investments 1,0711,1581,5181,5451,6961,9562,1522,5293,0062,829
Inventories5485908591,0249911,0931,5131,9761,7251,850
Trade Receivables3754806338759671,5551,5571,7681,7681,754
Cash Equivalents 6335241992783987661,6732,2972,1641,066
Others Assets1,2676407557446167678411,4369303,339
Total Assets 4,8614,4135,3076,2366,6568,2879,81812,12011,64612,751

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 2426304993187456821,3241,2991,4371,687
PBT 3958398949349441,3381,8841,7531,3271,881
Adjustment -32-65-477130141123108129212
Changes in Working Capital -163-187-512-124-564-362-227206-53
Tax Paid -106-147-205-181-205-234-321-335-224-353
Cash Flow From Investing Activity -260311-362-273-313-995-1,121-1,669197-866
Capex -130-167-452-493-353-267-95-234-139-100
Net Investments 12386195268175-448-916-1,123483-1,171
Others -14292-105-48-135-280-111-312-147406
Cash Flow From Financing Activity 26-958-125-60-276173-209437-1,711-959
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -46-26-306000000
Interest Paid -73-53-24-32-28-39-38-26-70-62
Dividend Paid -48-152-72-179-179-359-335-418-526-538
Others 192-7270145-68570163881-1,116-359
Net Cash Flow 8-1813-15156-141-567-77-138
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)12.4820.922.115.4315.4521.5324.2318.8312.5417.56
ROCE (%)11.7721.9421.0118.9717.0520.4623.4317.9613.1717.86
Asset Turnover Ratio0.720.850.960.960.930.930.840.850.80.84
PAT to CFO Conversion(x)0.660.90.570.440.930.540.790.841.270.97
Working Capital Days
Receivable Days38404450566675656863
Inventory Days59535762625463697164
Payable Days98116146158144128140125119148

Alkem Laboratories Ltd Stock News

Alkem Laboratories Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Alkem Laboratories on 04-Oct-2024 10:16 is ₹6,183.8.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 04-Oct-2024 10:16 the market cap of Alkem Laboratories stood at ₹73,643.1.
The latest P/E ratio of Alkem Laboratories as of 04-Oct-2024 10:16 is 35.77.
The latest P/B ratio of Alkem Laboratories as of 04-Oct-2024 10:16 is 6.61.
The 52-week high of Alkem Laboratories is ₹6,440 and the 52-week low is ₹3,440.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Alkem Laboratories is ₹9,995 ( Cr.) .

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.
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