Alkem Laboratories Ltd - Stock Valuation and Financial Performance

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

Alkem Laboratories Share Price

4,841.35 15.30 0.32%
as on 12-Apr'24 10:20

DeciZen - make an informed investing decision on Alkem Laboratories

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

Alkem Laboratories stock performance -

mw4me loader
P/E Ratio (SA):
33.74
Market Cap:
56,587.1 Cr.
52-wk low:
3,211.1
52-wk high:
5,519.1

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 Semi Strong which suggest that the price of Alkem Laboratories Ltd is likely to Rise-somewhat 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 13.7%10.4%18.3%20.6%14.6%14.1%19%20.4%15.5%11%-
Value Creation
Index
0.2-0.10.40.80.30.30.70.80.40.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,7083,1383,8594,5485,2815,7146,6777,2208,8309,0559,620
Sales YoY Gr.-15.9%23%17.9%16.1%8.2%16.9%8.1%22.3%2.6%-
Adj EPS 37.330.259.273.860.365.7104.5138126.893.2140.3
YoY Gr.--19.1%96.4%24.7%-18.3%9%59%32%-8.1%-26.5%-
BVPS (₹) 233.4259.4301.1367.4408.7457.2525.3637.9731.4782.1890.7
Adj Net
Profit
4453607088837217861,2501,6501,5161,1141,677
Cash Flow from Ops. 1062426304993187456821,3241,2991,437-
Debt/CF from Ops. 94.60.60.71.70.71.811.70.8-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 14.4%11.4%10.7%2.6%
Adj EPS 10.7%9.1%-3.8%-26.5%
BVPS14.4%13.9%14.2%6.9%
Share Price - 22.4% 20.7% 44.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
17.312.221.122.115.515.221.323.718.512.316.8
Op. Profit
Mgn %
15.311.21919.318.918.422.22720.515.319.6
Net Profit
Mgn %
16.511.518.419.413.713.818.722.917.212.317.4
Debt to
Equity
0.30.40.10.10.10.10.20.20.30.1-
Working Cap
Days
185206180155162159156175178184130
Cash Conv.
Cycle
5453414145516276808174

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 10.69%

Return on Equity has declined versus last 3 years average to 16.80%

Net Profit has been subdued in last 3 years -3.75%

Sales growth is not so good in last 4 quarters at 9.17%

Latest Financials - Alkem Laboratories Ltd.

Standalone Consolidated
TTM EPS (₹) 140.3 131.6
TTM Sales (₹ Cr.) 9,620 12,634
BVPS (₹.) 890.7 873.7
Reserves (₹ Cr.) 10,625 10,423
P/BV 5.31 5.42
PE 33.74 35.97
From the Market
52 Week Low / High (₹) 3211.05 / 5519.10
All Time Low / High (₹) 1175.00 / 5519.10
Market Cap (₹ Cr.) 56,587
Equity (₹ Cr.) 23.9
Face Value (₹) 2
Industry PE 48

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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales2,7083,1383,8594,5485,2815,7146,6777,2208,8309,055
Operating Expenses 2,2962,7923,1393,6704,3084,6685,2095,2717,0197,678
Manufacturing Costs1193884956546866517047371,081951
Material Costs1,1351,1621,2811,4381,7391,9912,2292,3083,0143,367
Employee Cost 4425616277228629601,0671,1591,4341,516
Other Costs 6006827358551,0211,0671,2091,0661,4901,843
Operating Profit 4133467208789731,0461,4681,9491,8101,377
Operating Profit Margin (%) 15.2%11.0%18.7%19.3%18.4%18.3%22.0%27.0%20.5%15.2%
Other Income 1691822511171016896190200266
Interest 84735924322839433886
Depreciation 43607476108141187199219230
Exceptional Items 0000000-1300
Profit Before Tax 4553958398949349441,3381,8841,7531,327
Tax 11281391121814474199212193
Profit After Tax 4443687008837168001,2641,6851,5411,134
PAT Margin (%) 16.4%11.7%18.1%19.4%13.6%14.0%18.9%23.3%17.5%12.5%
Adjusted EPS (₹)37.130.858.673.959.966.9105.8141.0128.994.9
Dividend Payout Ratio (%)5%13%22%20%22%24%24%21%26%53%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 2,7903,1013,6004,3934,8855,4656,2807,6268,7449,350
Share Capital 12242424242424242424
Reserves 2,7783,0773,5764,3694,8615,4416,2577,6028,7209,326
Minority Interest0000000000
Debt9081,0743513685485031,2091,3332,2461,126
Long Term Debt542800666000
Short Term Debt8541,0463513685414971,2031,3332,2461,126
Trade Payables2763474676858197548129531,1111,076
Others Liabilities 258339-4-139-15-67-15-932094
Total Liabilities 4,2324,8614,4135,3076,2366,6568,2879,81812,12011,646

Fixed Assets

Gross Block1,0691,1569451,2631,7141,9732,3522,4572,8272,932
Accumulated Depreciation231286701372433675156999451,107
Net Fixed Assets8398708751,1261,4711,6061,8371,7581,8821,825
CWIP 7196147218299382314323232229
Investments 9411,0711,1581,5181,5451,6961,9562,1522,5293,006
Inventories5055485908591,0249911,0931,5131,9761,725
Trade Receivables2973754806338759671,5551,5571,7681,768
Cash Equivalents 8916335241992783987661,6732,2972,164
Others Assets6901,2676407557446167678411,436930
Total Assets 4,2324,8614,4135,3076,2366,6568,2879,81812,12011,646

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 1062426304993187456821,3241,2991,437
PBT 4553958398949349441,3381,8841,7531,327
Adjustment 6-32-65-477130141123108129
Changes in Working Capital -247-163-187-512-124-564-362-227206
Tax Paid -109-106-147-205-181-205-234-321-335-224
Cash Flow From Investing Activity 37-260311-362-273-313-995-1,121-1,669197
Capex -123-130-167-452-493-353-267-95-234-139
Net Investments -12012386195268175-448-916-1,123483
Others 279-14292-105-48-135-280-111-312-147
Cash Flow From Financing Activity -15426-958-125-60-276173-209437-1,711
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -38-46-26-30600000
Interest Paid -84-73-53-24-32-28-39-38-26-70
Dividend Paid -28-48-152-72-179-179-359-335-418-526
Others -4192-7270145-68570163881-1,116
Net Cash Flow -128-1813-15156-141-567-77
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)17.212.4820.922.115.4315.4521.5324.2318.8312.54
ROCE (%)14.6611.7721.9421.0118.9717.0520.4623.4317.9613.17
Asset Turnover Ratio0.680.720.850.960.960.930.930.840.850.8
PAT to CFO Conversion(x)0.240.660.90.570.440.930.540.790.841.27
Working Capital Days
Receivable Days39384044505666756568
Inventory Days61595357626254636971
Payable Days8698116146158144128140125119

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 12-Apr-2024 10:20 is ₹4,841.4.
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 12-Apr-2024 10:20 the market cap of Alkem Laboratories stood at ₹56,587.1.
The latest P/E ratio of Alkem Laboratories as of 12-Apr-2024 10:20 is 33.74.
The latest P/B ratio of Alkem Laboratories as of 12-Apr-2024 10:20 is 5.31.
The 52-week high of Alkem Laboratories is ₹5,519.1 and the 52-week low is ₹3,211.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Alkem Laboratories is ₹9,620 ( 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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