Is Alkem Laboratories a good quality company?

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

Is Alkem Laboratories 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 .

What is Alkem Laboratories share price return in the past 10 years?

Data is not available for this company

Is Alkem Laboratories 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.

Alkem Laboratories Ltd - Stock Valuation and Financial Performance

Name: Alkem Laboratories
Brand: Alkem Laboratories

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

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Alkem Laboratories Share Price

₹5,298.20 119.40 2.31%
as on 26-Jul'24 16:01

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

Standalone Basis ^P Consolidated Basis ^P

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

Value Creation ⓘ

Value Creation Index Colour Code Guide ⓘ

	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	TTM
ROCE % ⓘ	13.7%	10.4%	18.3%	20.6%	14.6%	14.1%	19%	20.4%	15.5%	10.9%	-
Value Creation Index ⓘ	0.2	-0.1	0.4	0.8	0.3	0.3	0.7	0.8	0.4	0.0	-
Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	2,708	3,138	3,859	4,548	5,281	5,714	6,677	7,220	8,830	9,055	9,748
Sales YoY Gr.	-	15.9%	23%	17.9%	16.1%	8.2%	16.9%	8.1%	22.3%	2.6%	-
Adj EPS ⓘ	37.3	30.2	59.2	73.8	60.3	65.7	104.5	138	126.8	93.1	146.1
YoY Gr.	-	-19.1%	96.4%	24.7%	-18.3%	9%	59%	32%	-8.1%	-26.6%	-
BVPS (₹) ⓘ	233.4	259.4	301.1	367.4	408.7	457.2	525.3	637.9	731.4	782.1	882.8
Adj Net Profit ⓘ	445	360	708	883	721	786	1,250	1,650	1,516	1,113	1,747
Cash Flow from Ops. ⓘ	106	242	630	499	318	745	682	1,324	1,299	1,437	-
Debt/CF from Ops. ⓘ	9	4.6	0.6	0.7	1.7	0.7	1.8	1	1.7	0.8	-

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%	-26.6%
BVPSⓘ	14.4%	13.9%	14.2%	6.9%
Share Price	-	24%	16.1%	31.5%

Key Financial Parameters ⓘ

Performance Ratio Colour Code Guide ⓘ

	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	TTM
Return on Equity % ⓘ	17.3	12.2	21.1	22.1	15.5	15.2	21.3	23.7	18.5	12.3	17.6
Op. Profit Mgn % ⓘ	15.3	11.2	19	19.3	18.9	18.4	22.2	27	20.5	15.3	20.2
Net Profit Mgn % ⓘ	16.5	11.5	18.4	19.4	13.7	13.8	18.7	22.9	17.2	12.3	17.9
Debt to Equity ⓘ	0.3	0.4	0.1	0.1	0.1	0.1	0.2	0.2	0.3	0.1	0
Working Cap Days ⓘ	185	206	180	155	162	159	156	175	178	184	138
Cash Conv. Cycle ⓘ	54	53	41	41	45	51	62	76	80	81	84

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 17.60%

Net Profit has been subdued in last 3 years -3.79%

Sales growth is not so good in last 4 quarters at 7.70%

Latest Financials - Alkem Laboratories Ltd.

	Standalone	Consolidated
TTM EPS (₹)	146.1	150.2
TTM Sales (₹ Cr.)	9,748	12,668
BVPS (₹.) ⓘ	882.8	862.5
Reserves (₹ Cr.) ⓘ	10,531	10,288
P/BV ⓘ	6.00	6.14
PE ⓘ	36.24	35.26

From the Market
52 Week Low / High (₹)	3440.05 / 5581.20
All Time Low / High (₹)	1175.00 / 5581.20
Market Cap (₹ Cr.)	63,319
Equity (₹ Cr.)	23.9
Face Value (₹)	2
Industry PE ⓘ	45.5

Management X-Ray of Alkem Laboratories:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

0.00

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

Valuation of Alkem Laboratories

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Price to Earnings

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Dividend History

Analyst's Notes

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Key Ratios of Alkem Laboratories

Standalone Basis Consolidated Basis

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Sales	3,138	3,859	4,548	5,281	5,714	6,677	7,220	8,830	9,055	9,748
Operating Expenses ⓘ	2,792	3,139	3,670	4,308	4,668	5,209	5,271	7,019	7,678	7,783
Manufacturing Costs	388	495	654	686	651	704	737	1,081	951	1,107
Material Costs	1,162	1,281	1,438	1,739	1,991	2,229	2,308	3,014	3,367	3,263
Employee Cost	561	627	722	862	960	1,067	1,159	1,434	1,516	1,560
Other Costs ⓘ	682	735	855	1,021	1,067	1,209	1,066	1,490	1,843	1,852
Operating Profit ⓘ	346	720	878	973	1,046	1,468	1,949	1,810	1,377	1,965
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 ⓘ	182	251	117	101	68	96	190	200	266	306
Interest ⓘ	73	59	24	32	28	39	43	38	86	82
Depreciation ⓘ	60	74	76	108	141	187	199	219	230	244
Exceptional Items ⓘ	0	0	0	0	0	0	-13	0	0	-64
Profit Before Tax ⓘ	395	839	894	934	944	1,338	1,884	1,753	1,327	1,881
Tax ⓘ	28	139	11	218	144	74	199	212	193	134
Profit After Tax	368	700	883	716	800	1,264	1,685	1,541	1,134	1,747
PAT Margin (%)	11.7%	18.1%	19.4%	13.6%	14.0%	18.9%	23.3%	17.5%	12.5%	17.9%
Adjusted EPS (₹)	30.8	58.6	73.9	59.9	66.9	105.8	141.0	128.9	94.9	146.1
Dividend Payout Ratio (%)	13%	22%	20%	22%	24%	24%	21%	26%	53%	27%

Balance Sheet

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Equity and Liabilities
Shareholders Fund	3,101	3,600	4,393	4,885	5,465	6,280	7,626	8,744	9,350	10,555
Share Capital ⓘ	24	24	24	24	24	24	24	24	24	24
Reserves ⓘ	3,077	3,576	4,369	4,861	5,441	6,257	7,602	8,720	9,326	10,531
Minority Interest	0	0	0	0	0	0	0	0	0	0
Debt	1,074	351	368	548	503	1,209	1,333	2,246	1,126	957
Long Term Debt	28	0	0	6	6	6	0	0	0	0
Short Term Debt	1,046	351	368	541	497	1,203	1,333	2,246	1,126	957
Trade Payables	347	467	685	819	754	812	953	1,111	1,076	1,571
Others Liabilities ⓘ	339	-4	-139	-15	-67	-15	-93	20	94	-332
Total Liabilities ⓘ	4,861	4,413	5,307	6,236	6,656	8,287	9,818	12,120	11,646	12,751
Fixed Assets
Gross Block	1,156	945	1,263	1,714	1,973	2,352	2,457	2,827	2,932	3,144
Accumulated Depreciation	286	70	137	243	367	515	699	945	1,107	1,321
Net Fixed Assetsⓘ	870	875	1,126	1,471	1,606	1,837	1,758	1,882	1,825	1,824
CWIP ⓘ	96	147	218	299	382	314	323	232	229	91
Investmentsⓘ	1,071	1,158	1,518	1,545	1,696	1,956	2,152	2,529	3,006	2,829
Inventories	548	590	859	1,024	991	1,093	1,513	1,976	1,725	1,850
Trade Receivables	375	480	633	875	967	1,555	1,557	1,768	1,768	1,754
Cash Equivalents	633	524	199	278	398	766	1,673	2,297	2,164	1,066
Others Assetsⓘ	1,267	640	755	744	616	767	841	1,436	930	3,339
Total Assets ⓘ	4,861	4,413	5,307	6,236	6,656	8,287	9,818	12,120	11,646	12,751

Cash Flow

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Cash Flow From Operating Activity ⓘ	242	630	499	318	745	682	1,324	1,299	1,437	1,687
PBT ⓘ	395	839	894	934	944	1,338	1,884	1,753	1,327	1,881
Adjustment ⓘ	-32	-65	-4	77	130	141	123	108	129	212
Changes in Working Capital ⓘ	-16	3	-187	-512	-124	-564	-362	-227	206	-53
Tax Paid ⓘ	-106	-147	-205	-181	-205	-234	-321	-335	-224	-353
Cash Flow From Investing Activity ⓘ	-260	311	-362	-273	-313	-995	-1,121	-1,669	197	-866
Capex	-130	-167	-452	-493	-353	-267	-95	-234	-139	-100
Net Investments	12	386	195	268	175	-448	-916	-1,123	483	-1,171
Others ⓘ	-142	92	-105	-48	-135	-280	-111	-312	-147	406
Cash Flow From Financing Activityⓘ	26	-958	-125	-60	-276	173	-209	437	-1,711	-959
Net Proceeds from Shares ⓘ	0	0	0	0	0	0	0	0	0	0
Net Proceeds from Borrowing ⓘ	-46	-26	-30	6	0	0	0	0	0	0
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	-727	0	145	-68	570	163	881	-1,116	-359
Net Cash Flow ⓘ	8	-18	13	-15	156	-141	-5	67	-77	-138

Finance Ratio

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Ratios
ROE (%)	12.48	20.9	22.1	15.43	15.45	21.53	24.23	18.83	12.54	17.56
ROCE (%)	11.77	21.94	21.01	18.97	17.05	20.46	23.43	17.96	13.17	17.86
Asset Turnover Ratio	0.72	0.85	0.96	0.96	0.93	0.93	0.84	0.85	0.8	0.84
PAT to CFO Conversion(x)	0.66	0.9	0.57	0.44	0.93	0.54	0.79	0.84	1.27	0.97
Working Capital Days
Receivable Days	38	40	44	50	56	66	75	65	68	63
Inventory Days	59	53	57	62	62	54	63	69	71	64
Payable Days	98	116	146	158	144	128	140	125	119	148

Alkem Laboratories Ltd Stock News

Alkem Laboratories Ltd FAQs

What is the share price of Alkem Laboratories?

Company share prices are keep on changing according to the market conditions. The closing price of Alkem Laboratories on 26-Jul-2024 16:01 is ₹5,298.2.

What is the market cap of Alkem Laboratories?

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 26-Jul-2024 16:01 the market cap of Alkem Laboratories stood at ₹63,319.2.

What is the P/E ratio of Alkem Laboratories?

The latest P/E ratio of Alkem Laboratories as of 26-Jul-2024 16:01 is 36.24.

What is the P/B ratio of Alkem Laboratories?

The latest P/B ratio of Alkem Laboratories as of 26-Jul-2024 16:01 is 6.00.

What is the 52-week high and low of Alkem Laboratories?

The 52-week high of Alkem Laboratories is ₹5,581.2 and the 52-week low is ₹3,440.1.

What is the TTM revenue of Alkem Laboratories?

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Alkem Laboratories is ₹9,748 ( 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.