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Last Updated on: 22 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 539523 | NSE: ALKEM

Fundamental Analysis of Alkem Laboratories Ltd

About the Company - Alkem Laboratories Ltd

Alkem Laboratories Ltd. is a Public Limited Listed company incorporated on 08/08/1973 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L00305MH1973PLC174201 and registration number is 174201. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company’s Total Operating Revenue is Rs. 8829.81 Cr. and Equity Capital is Rs. 23.91 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
PharmaceuticalsAlkem House, Mumbai Maharashtra 400013investors@alkem.com
http://www.alkemlabs.com
Management
NamePosition Held
Mr. Basudeo N SinghExecutive Chairman
Mr. Sandeep SinghManaging Director
Mrs. Madhurima SinghExecutive Director
Mr. Srinivas SinghExecutive Director
Mr. Mritunjay Kumar SinghExecutive Director
Mr. Sarvesh SinghExecutive Director
Mr. Sujjain TalwarIndependent Director
Mr. Arun Kumar PurwarIndependent Director
Ms. Sangeeta SinghIndependent Director
Ms. Sudha RaviIndependent Director
Dr. Dheeraj SharmaIndependent Director
Mr. Narendra Kumar AnejaIndependent Director

Alkem Laboratories Ltd. Share Price Update

Share PriceValue
Today₹4,597.05
Previous Day₹4,648.75

Basic Stock Data of Alkem Laboratories Ltd

Last Updated: April 6, 2024, 9:24 am

Market Cap 58,964 Cr.
Current Price 4,932
High / Low5,520/3,186
Stock P/E35.1
Book Value 823
Dividend Yield0.72 %
ROCE13.7 %
ROE12.1 %
Face Value 2.00

Data Source: screener.in

Competitors of Alkem Laboratories Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Brawn Biotech Ltd 5.51 Cr. 18.426.8/14.4 19.00.00 %5.91 %12.9 % 10.0
Astrazeneca Pharma India Ltd 12,859 Cr. 5,1447,221/3,09880.6 2620.31 %30.9 %23.0 % 2.00
Brooks Laboratories Ltd 259 Cr. 98.8186/56.5 30.10.00 %27.7 %23.4 % 10.0
Ami Organics Ltd 4,400 Cr. 1,1931,389/1,00461.7 1710.25 %20.6 %15.0 % 10.0
Themis Medicare Ltd 1,924 Cr. 209266/13142.5 39.60.24 %19.7 %17.3 % 1.00
Industry Average3,889.50 Cr1,332.6436.96104.340.16%20.96%18.32%6.60

Alkem Laboratories Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,3182,1922,7312,8002,6192,4842,5763,0793,0412,9032,9683,4403,324
Expenses1,7891,9012,1382,1762,1212,1472,3732,6252,4422,5492,5792,6932,616
Operating Profit529291593624498337203454599353389747708
OPM %23%13%22%22%19%14%8%15%20%12%13%22%21%
Other Income96464742546515145-3466642
Interest13111312111726252729303025
Depreciation69697173778376777878727470
Profit before tax543258556582464243152402539212353648655
Tax %15%3%14%4%-15%55%13%14%15%68%18%5%8%
Net Profit46424948055953310813134846068288615604
EPS in Rs37.7220.0739.1545.5243.969.0010.6827.6738.035.9423.9851.9049.76

Last Updated: April 6, 2024, 9:24 am

Alkem Laboratories Ltd Quarterly Chart

Alkem Laboratories Ltd Profit & Loss

Month

Alkem Laboratories Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-5.65%13.28%-9.89%91.84%20.35%-29.50%21.32%48.45%40.82%3.83%-40.06%
Change in YoY Net Profit Growth (%)0.00%18.93%-23.17%101.72%-71.49%-49.85%50.82%27.13%-7.63%-36.99%-43.89%

Alkem Laboratories Ltd Growth

Compounded Sales Growth
10 Years:17%
5 Years:13%
3 Years:12%
TTM:13%
Compounded Profit Growth
10 Years:11%
5 Years:11%
3 Years:-2%
TTM:64%
Stock Price CAGR
10 Years:%
5 Years:22%
3 Years:19%
1 Year:41%
Return on Equity
10 Years:18%
5 Years:18%
3 Years:18%
Last Year:12%

Last Updated: April 6, 2024, 9:24 am

Alkem Laboratories Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital12121224242424242424242424
Reserves1,8022,1602,5672,9753,6684,4444,8405,4156,1377,3538,6149,0219,819
Borrowings1,0071,5521,1281,3066586599989441,6161,7922,6681,3971,441
Other Liabilities6445476049861,1841,4401,8031,8242,1692,3512,7633,3153,642
Total Liabilities3,4664,2714,3115,2915,5346,5687,6648,2089,94611,51914,06913,75714,926
Fixed Assets9191,0721,1701,3741,4501,7972,2842,5302,9082,7932,9022,6832,905
CWIP000111172299381493363393339323181
Investments323478588481509553444324261333371622626
Other Assets2,2242,7212,5533,3253,4033,9184,5554,8616,4138,00010,45710,12911,214
Total Assets3,4664,2714,3115,2915,5346,5687,6648,2089,94611,51914,06913,75714,926

Alkem Laboratories Ltd Reserves and Borrowings Chart

Alkem Laboratories Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 159782903257264712667805851,2651,1111,682
Cash from Investing Activity -246-403353-235205-294-351-318-737-995-1,433120
Cash from Financing Activity -11356-600-52-927-13885-37979-272380-1,761
Net Cash Flow-98314439340082-73-25842

Alkem Laboratories Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days454743524246626272666567
Inventory Days168191163169169198221186198241262194
Days Payable121998110110812214711910411210287
Cash Conversion Cycle92139126121103122135129167196225174
Working Capital Days6396746048658488109117120107
ROCE %19%15%14%12%23%21%17%16%18%22%18%14%

Alkem Laboratories Ltd Financial Efficiency Indicators Chart

Alkem Laboratories Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters60.16%58.84%58.84%57.13%57.13%57.14%57.16%57.16%57.16%57.16%56.74%56.74%
FIIs4.42%4.50%5.33%5.40%5.41%5.67%4.46%4.41%4.44%5.63%6.03%8.49%
DIIs13.20%14.49%13.99%13.94%14.14%14.10%15.73%16.44%16.69%16.34%17.63%15.91%
Public22.22%22.17%21.84%23.53%23.32%23.09%22.65%21.99%21.69%20.85%19.58%18.86%
No. of Shareholders95,29493,54087,39286,88181,86984,10479,72176,51673,44066,79069,44265,184

Alkem Laboratories Ltd Shareholding Pattern Chart

No. of Alkem Laboratories Ltd Shareholders

Alkem Laboratories Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
DSP Mid Cap Fund17383534.21633.26
Nippon India Growth Fund7900001.48284.87
Axis Midcap Fund6392501.02230.51
SBI Large & Midcap Fund5600001.39204
UTI Mid Cap Fund4799071.97174.82
ICICI Prudential Long Term Equity Fund4759021.54173.36
Kotak Emerging Equity Fund - Regular Plan4722180.52172.02
ICICI Prudential Value Discovery Fund4412050.49160.72
DSP Flexi Cap Fund4411061.79160.69
DSP Equity Opportunities Fund4269421.75155.53

Alkem Laboratories Ltd ROCE Trend

Alkem Laboratories Ltd EPS Trend

Alkem Laboratories Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)82.31137.63132.5794.2663.61
Diluted EPS (Rs.)82.31137.63132.5794.2663.61
Cash EPS (Rs.)110.18165.98158.29117.2880.87
Book Value[Excl.RevalReserv]/Share (Rs.)789.21740.05632.20527.73466.08
Book Value[Incl.RevalReserv]/Share (Rs.)789.21740.05632.20527.73466.08
Revenue From Operations / Share (Rs.)970.24889.52741.53697.98615.41
PBDIT / Share (Rs.)152.70185.33181.98131.96100.58
PBIT / Share (Rs.)126.73159.90159.01110.8284.42
PBT / Share (Rs.)109.14154.27154.09105.3879.85
Net Profit / Share (Rs.)84.22140.55135.3296.1464.71
NP After MI And SOA / Share (Rs.)82.32137.65132.5894.2863.61
PBDIT Margin (%)15.7320.8324.5418.9016.34
PBIT Margin (%)13.0617.9721.4415.8713.71
PBT Margin (%)11.2417.3420.7715.0912.97
Net Profit Margin (%)8.6715.8018.2413.7710.51
NP After MI And SOA Margin (%)8.4815.4717.8713.5010.33
Return on Networth / Equity (%)10.8819.0521.4818.2913.98
Return on Capital Employeed (%)15.0720.6324.0119.7716.84
Return On Assets (%)7.1511.6913.7511.339.26
Long Term Debt / Equity (X)0.010.000.000.010.04
Total Debt / Equity (X)0.150.290.220.250.16
Asset Turnover Ratio (%)0.830.710.690.770.76
Current Ratio (X)2.351.761.921.701.90
Quick Ratio (X)1.651.131.281.141.22
Inventory Turnover Ratio (X)1.091.331.231.391.23
Dividend Payout Ratio (NP) (%)0.000.0021.1231.8223.58
Dividend Payout Ratio (CP) (%)0.000.0018.0025.9918.80
Earning Retention Ratio (%)0.000.0078.8868.1876.42
Cash Earning Retention Ratio (%)0.000.0082.0074.0181.20
Interest Coverage Ratio (X)17.0042.3136.9224.2522.01
Interest Coverage Ratio (Post Tax) (X)11.3433.3728.4618.6715.16
Enterprise Value (Cr.)39790.8043453.4033002.6928474.9121316.35
EV / Net Operating Revenue (X)3.434.093.723.412.90
EV / EBITDA (X)21.8019.6115.1718.0517.73
MarketCap / Net Operating Revenue (X)3.504.073.743.342.85
Retention Ratios (%)0.000.0078.8768.1776.41
Price / BV (X)4.495.014.494.523.85
Price / Net Operating Revenue (X)3.504.073.743.342.85
EarningsYield0.020.030.040.040.03

Alkem Laboratories Ltd Profitability Ratios (%)

Alkem Laboratories Ltd Liquidity Ratios

Alkem Laboratories Ltd Liquidity Ratios (%)

Alkem Laboratories Ltd Interest Coverage Ratios (X)

Alkem Laboratories Ltd Valuation Ratios

Fair Value / Intrinsic Value of Alkem Laboratories Ltd

Fair Value: 3520.53

The stock is overvalued by 28.62% compared to the current price ₹4932

Calculation basis:

  • Fair value = (P/E Ratio * (Return on Equity / 100) * Book Value) * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

*Investments are subject to market risks

Strength and Weakness of Alkem Laboratories Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 17.42%, which is a positive sign.
  2. The company has higher reserves (5,293.46 cr) compared to borrowings (1,320.46 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (6.23 cr) and profit (422.69 cr) over the years.
  1. The stock has a high average Working Capital Days of 85.92, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 144.08, which may not be favorable.

Should I Buy Alkem Laboratories Ltd Share Now?

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Alkem Laboratories Ltd:
    1. Net Profit Margin: 8.67%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 15.07% (Industry Average ROCE: 12.99%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 10.88% (Industry Average ROE: 11.7%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 11.34
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.65
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✓ Stock P/E: 35.1 (Industry average Stock P/E: 58.18)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✓ Total Debt / Equity: 0.15
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating: ★★★★☆

FAQ

What is the latest fair value of Alkem Laboratories Ltd?

The latest fair value of Alkem Laboratories Ltd is 3520.53.

What is the Market Cap of Alkem Laboratories Ltd?

The Market Cap of Alkem Laboratories Ltd is 58,964 Cr..

What is the current Stock Price of Alkem Laboratories Ltd as on 17 April 2024?

The current stock price of Alkem Laboratories Ltd as on 17 April 2024 is 4,932.

What is the High / Low of Alkem Laboratories Ltd stocks in FY 2024?

In FY 2024, the High / Low of Alkem Laboratories Ltd stocks is ₹5,520/3,186.

What is the Stock P/E of Alkem Laboratories Ltd?

The Stock P/E of Alkem Laboratories Ltd is 35.1.

What is the Book Value of Alkem Laboratories Ltd?

The Book Value of Alkem Laboratories Ltd is 823.

What is the Dividend Yield of Alkem Laboratories Ltd?

The Dividend Yield of Alkem Laboratories Ltd is 0.72 %.

What is the ROCE of Alkem Laboratories Ltd?

The ROCE of Alkem Laboratories Ltd is 13.7 %.

What is the ROE of Alkem Laboratories Ltd?

The ROE of Alkem Laboratories Ltd is 12.1 %.

What is the Face Value of Alkem Laboratories Ltd?

The Face Value of Alkem Laboratories Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Alkem Laboratories Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE