Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 17 April, 2025
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 539523 | NSE: ALKEM

Alkem Laboratories Ltd: Intrinsic Value & Share Price Analysis

Share Price and Basic Stock Data

Last Updated: April 17, 2025, 10:54 am

Market Cap 58,712 Cr.
Current Price 4,910
High / Low 6,440/4,407
Stock P/E27.2
Book Value 961
Dividend Yield0.80 %
ROCE19.7 %
ROE19.6 %
Face Value 2.00
PEG Ratio4.30

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Alkem Laboratories Ltd

Competitors of Alkem Laboratories Ltd

Stock Name ⇩Market Cap ⇩Current Price ⇩High / Low ⇩Stock P/E ⇩Book Value ⇩Dividend Yield ⇩ROCE ⇩ROE ⇩Face Value ⇩
Lactose (India) Ltd 155 Cr. 110 247/84.322.4 36.50.00 %18.0 %15.5 % 10.0
MPS Pharmaa Ltd 5.77 Cr. 3.02 4.33/2.75 0.800.00 %9.15 %34.9 % 10.0
Gujarat Themis Biosyn Ltd 2,663 Cr. 244 390/19250.6 20.50.27 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 45.4 Cr. 61.2 94.9/44.515.4 11.90.00 %9.72 %3.44 % 10.0
Gujarat Inject (Kerala) Ltd 35.2 Cr. 24.0 29.0/12.335.9 6.640.00 %2.65 %2.08 % 10.0
Industry Average17,552.45 Cr1,110.3043.07182.590.34%16.00%16.30%6.24

All Competitor Stocks of Alkem Laboratories Ltd

Quarterly Result

MetricDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024
Sales 2,6192,4842,5763,0793,0412,9032,9683,4403,3242,9363,0323,4153,374
Expenses 2,1212,1472,3732,6252,4422,5492,5792,6932,6162,5342,4232,6622,615
Operating Profit 498337203454599353389747708402609753759
OPM % 19%14%8%15%20%12%13%22%21%14%20%22%23%
Other Income 546515145-34666427612013493
Interest 11172625272930302527292836
Depreciation 77837677787872747083807985
Profit before tax 464243152402539212353648655367619780731
Tax % -15%55%13%14%15%68%18%5%8%17%11%10%12%
Net Profit 53310813134846068288615604304550702641
EPS in Rs 43.969.0010.6827.6738.035.9423.9851.9049.7624.5545.6057.6052.34

Last Updated: February 28, 2025, 8:41 pm

Below is a detailed analysis of the quarterly data for Alkem Laboratories Ltd based on the most recent figures (Dec 2024) and their trends compared to the previous period:

  • For Sales, as of Dec 2024, the value is 3,374.00 Cr.. The value appears to be declining and may need further review. It has decreased from 3,415.00 Cr. (Sep 2024) to 3,374.00 Cr., marking a decrease of 41.00 Cr..
  • For Expenses, as of Dec 2024, the value is 2,615.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 2,662.00 Cr. (Sep 2024) to 2,615.00 Cr., marking a decrease of 47.00 Cr..
  • For Operating Profit, as of Dec 2024, the value is 759.00 Cr.. The value appears strong and on an upward trend. It has increased from 753.00 Cr. (Sep 2024) to 759.00 Cr., marking an increase of 6.00 Cr..
  • For OPM %, as of Dec 2024, the value is 23.00%. The value appears strong and on an upward trend. It has increased from 22.00% (Sep 2024) to 23.00%, marking an increase of 1.00%.
  • For Other Income, as of Dec 2024, the value is 93.00 Cr.. The value appears to be declining and may need further review. It has decreased from 134.00 Cr. (Sep 2024) to 93.00 Cr., marking a decrease of 41.00 Cr..
  • For Interest, as of Dec 2024, the value is 36.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 28.00 Cr. (Sep 2024) to 36.00 Cr., marking an increase of 8.00 Cr..
  • For Depreciation, as of Dec 2024, the value is 85.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 79.00 Cr. (Sep 2024) to 85.00 Cr., marking an increase of 6.00 Cr..
  • For Profit before tax, as of Dec 2024, the value is 731.00 Cr.. The value appears to be declining and may need further review. It has decreased from 780.00 Cr. (Sep 2024) to 731.00 Cr., marking a decrease of 49.00 Cr..
  • For Tax %, as of Dec 2024, the value is 12.00%. The value appears to be increasing, which may not be favorable. It has increased from 10.00% (Sep 2024) to 12.00%, marking an increase of 2.00%.
  • For Net Profit, as of Dec 2024, the value is 641.00 Cr.. The value appears to be declining and may need further review. It has decreased from 702.00 Cr. (Sep 2024) to 641.00 Cr., marking a decrease of 61.00 Cr..
  • For EPS in Rs, as of Dec 2024, the value is 52.34. The value appears to be declining and may need further review. It has decreased from 57.60 (Sep 2024) to 52.34, marking a decrease of 5.26.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: March 7, 2025, 9:20 pm

MetricMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales 2,4853,1133,6744,9055,6886,4017,3578,3448,86510,63411,59912,66812,757
Expenses 2,1232,7003,2484,0384,6875,3926,2376,8686,9208,5809,97710,41910,234
Operating Profit 3624134278661,0011,0091,1201,4761,9452,0541,6222,2492,523
OPM % 15%13%12%18%18%16%15%18%22%19%14%18%20%
Other Income 16716217622711011582102230146101186423
Interest 88938171455555655952107112120
Depreciation 40527193101143193253275304310299328
Profit before tax 4024304519289659269551,2601,8421,8441,3052,0232,498
Tax % 4%-1%13%19%6%31%19%9%12%9%23%10%
Net Profit 3844353927529056387741,1491,6181,6801,0071,8112,197
EPS in Rs 321.01364.1032.7562.0274.6152.7763.6194.26132.57137.6382.31150.19180.09
Dividend Payout % 6%5%12%20%20%25%25%27%23%25%61%27%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)13.28%-9.89%91.84%20.35%-29.50%21.32%48.45%40.82%3.83%-40.06%79.84%
Change in YoY Net Profit Growth (%)0.00%-23.17%101.72%-71.49%-49.85%50.82%27.13%-7.63%-36.99%-43.89%119.90%

Alkem Laboratories Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:15%
5 Years:11%
3 Years:13%
TTM:1%
Compounded Profit Growth
10 Years:16%
5 Years:20%
3 Years:7%
TTM:29%
Stock Price CAGR
10 Years:%
5 Years:13%
3 Years:14%
1 Year:7%
Return on Equity
10 Years:18%
5 Years:19%
3 Years:17%
Last Year:20%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:44 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital 12122424242424242424242424
Reserves 2,1602,5672,9753,6684,4444,8405,4156,1377,3538,6149,02110,28811,469
Borrowings 1,5521,1281,3066586599989441,6161,7922,6681,3971,4181,478
Other Liabilities 5476049861,1841,4401,8031,8242,1692,3512,7633,3153,8444,146
Total Liabilities 4,2714,3115,2915,5346,5687,6648,2089,94611,51914,06913,75715,57517,117
Fixed Assets 1,0721,1701,3741,4501,7972,2842,5302,9082,7932,9022,6832,8732,807
CWIP 00111172299381493363393339323159292
Investments 4785884815095534443242613333716224841,160
Other Assets 2,7212,5533,3253,4033,9184,5554,8616,4138,00010,45710,12912,06012,858
Total Assets 4,2714,3115,2915,5346,5687,6648,2089,94611,51914,06913,75715,57517,117

Below is a detailed analysis of the balance sheet data for Alkem Laboratories Ltd based on the most recent figures (Sep 2024) and their trends compared to the previous period:

  • For Equity Capital, as of Sep 2024, the value is ₹24.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded 24.00 Cr..
  • For Reserves, as of Sep 2024, the value is ₹11,469.00 Cr.. The value appears strong and on an upward trend. It has increased from 10,288.00 Cr. (Mar 2024) to ₹11,469.00 Cr., marking an increase of 1,181.00 Cr..
  • For Borrowings, as of Sep 2024, the value is ₹1,478.00 Cr.. The value appears to be increasing, which may not be favorable. Additionally, since Reserves exceed Borrowings, this is considered a positive sign. It has increased from 1,418.00 Cr. (Mar 2024) to ₹1,478.00 Cr., marking an increase of 60.00 Cr..
  • For Other Liabilities, as of Sep 2024, the value is ₹4,146.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 3,844.00 Cr. (Mar 2024) to ₹4,146.00 Cr., marking an increase of 302.00 Cr..
  • For Total Liabilities, as of Sep 2024, the value is ₹17,117.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 15,575.00 Cr. (Mar 2024) to ₹17,117.00 Cr., marking an increase of 1,542.00 Cr..
  • For Fixed Assets, as of Sep 2024, the value is ₹2,807.00 Cr.. The value appears to be declining and may need further review. It has decreased from 2,873.00 Cr. (Mar 2024) to ₹2,807.00 Cr., marking a decrease of 66.00 Cr..
  • For CWIP, as of Sep 2024, the value is ₹292.00 Cr.. The value appears strong and on an upward trend. It has increased from 159.00 Cr. (Mar 2024) to ₹292.00 Cr., marking an increase of 133.00 Cr..
  • For Investments, as of Sep 2024, the value is ₹1,160.00 Cr.. The value appears strong and on an upward trend. It has increased from 484.00 Cr. (Mar 2024) to ₹1,160.00 Cr., marking an increase of 676.00 Cr..
  • For Other Assets, as of Sep 2024, the value is ₹12,858.00 Cr.. The value appears strong and on an upward trend. It has increased from 12,060.00 Cr. (Mar 2024) to ₹12,858.00 Cr., marking an increase of 798.00 Cr..
  • For Total Assets, as of Sep 2024, the value is ₹17,117.00 Cr.. The value appears strong and on an upward trend. It has increased from 15,575.00 Cr. (Mar 2024) to ₹17,117.00 Cr., marking an increase of 1,542.00 Cr..

Notably, the Reserves (11,469.00 Cr.) exceed the Borrowings (1,478.00 Cr.), indicating a solid financial buffer.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +782903257264712667805851,2651,1111,6821,948
Cash from Investing Activity +-403353-235205-294-351-318-737-995-1,433120-1,011
Cash from Financing Activity +356-600-52-927-13885-37979-272380-1,761-1,145
Net Cash Flow314439340082-73-25842-207

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow361.00412.00426.00208.00-658.00-997.00-943.000.000.000.000.001.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days474352424662627266656765
Inventory Days191163169169198221186198241262194197
Days Payable998110110812214711910411210287129
Cash Conversion Cycle139126121103122135129167196225174132
Working Capital Days96746048658488109117120107169
ROCE %15%14%12%23%21%17%16%18%22%18%14%20%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters58.84%57.13%57.13%57.14%57.16%57.16%57.16%57.16%56.74%56.74%56.74%56.38%
FIIs5.33%5.40%5.41%5.67%4.46%4.41%4.44%5.63%6.03%8.49%9.11%8.69%
DIIs13.99%13.94%14.14%14.10%15.73%16.44%16.69%16.34%17.63%15.91%15.63%18.56%
Public21.84%23.53%23.32%23.09%22.65%21.99%21.69%20.85%19.58%18.86%18.51%16.37%
No. of Shareholders87,39286,88181,86984,10479,72176,51673,44066,79069,44265,18465,83069,627

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
DSP Mid Cap Fund1,566,4214.73782.591,566,4212025-04-120%
Axis Midcap Fund813,1601.66406.26N/AN/AN/A
Nippon India Growth Fund790,0001.62394.69790,0002025-04-120%
ICICI Prudential ELSS Tax Saver Fund475,9021.89237.76475,9022025-04-140%
Kotak Emerging Equity Fund - Regular Plan472,2180.6235.92N/AN/AN/A
SBI Contra Fund452,4000.96226.02452,4002025-04-160%
DSP Flexi Cap Fund441,1062.19220.38N/AN/AN/A
UTI Mid Cap Fund394,4051.96197.05394,4052025-04-130%
ICICI Prudential Multi Asset Fund388,5260.59194.11388,5262025-04-140%
Nippon India Pharma Fund377,4122.74188.56N/AN/AN/A

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue 2.002.002.002.002.00
Basic EPS (Rs.) 150.1982.31137.63132.5794.26
Diluted EPS (Rs.) 150.1982.31137.63132.5794.26
Cash EPS (Rs.) 176.56110.18165.98158.29117.28
Book Value[Excl.RevalReserv]/Share (Rs.) 896.23789.21740.05632.20527.73
Book Value[Incl.RevalReserv]/Share (Rs.) 896.23789.21740.05632.20527.73
Revenue From Operations / Share (Rs.) 1059.61970.24889.52741.53697.98
PBDIT / Share (Rs.) 213.83152.70185.33181.98131.96
PBIT / Share (Rs.) 188.79126.73159.90159.01110.82
PBT / Share (Rs.) 169.23109.14154.27154.09105.38
Net Profit / Share (Rs.) 151.5284.22140.55135.3296.14
NP After MI And SOA / Share (Rs.) 150.2182.32137.65132.5894.28
PBDIT Margin (%) 20.1815.7320.8324.5418.90
PBIT Margin (%) 17.8113.0617.9721.4415.87
PBT Margin (%) 15.9711.2417.3420.7715.09
Net Profit Margin (%) 14.298.6715.8018.2413.77
NP After MI And SOA Margin (%) 14.178.4815.4717.8713.50
Return on Networth / Equity (%) 17.4110.8819.0521.4818.29
Return on Capital Employeed (%) 19.4915.0720.6324.0119.77
Return On Assets (%) 11.527.1511.6913.7511.33
Long Term Debt / Equity (X) 0.000.000.000.000.01
Total Debt / Equity (X) 0.110.140.290.220.25
Asset Turnover Ratio (%) 0.860.830.710.690.77
Current Ratio (X) 2.612.351.761.921.70
Quick Ratio (X) 1.941.651.131.281.14
Inventory Turnover Ratio (X) 1.251.091.331.231.39
Dividend Payout Ratio (NP) (%) 29.9653.450.0021.1231.82
Dividend Payout Ratio (CP) (%) 25.6840.630.0018.0025.99
Earning Retention Ratio (%) 70.0446.550.0078.8868.18
Cash Earning Retention Ratio (%) 74.3259.370.0082.0074.01
Interest Coverage Ratio (X) 22.7417.0042.3136.9224.25
Interest Coverage Ratio (Post Tax) (X) 18.2011.3433.3728.4618.67
Enterprise Value (Cr.) 59097.0539701.2743453.4033002.6928474.91
EV / Net Operating Revenue (X) 4.673.424.093.723.41
EV / EBITDA (X) 23.1221.7519.6115.1718.05
MarketCap / Net Operating Revenue (X) 4.663.504.073.743.34
Retention Ratios (%) 70.0346.540.0078.8768.17
Price / BV (X) 5.734.495.014.494.52
Price / Net Operating Revenue (X) 4.663.504.073.743.34
EarningsYield 0.030.020.030.040.04

After reviewing the key financial ratios for Alkem Laboratories Ltd, here is a detailed analysis based on the latest available data and recent trends:

  • For FaceValue, as of Mar 24, the value is 2.00. This value is within the healthy range. There is no change compared to the previous period (Mar 23) which recorded 2.00.
  • For Basic EPS (Rs.), as of Mar 24, the value is 150.19. This value is within the healthy range. It has increased from 82.31 (Mar 23) to 150.19, marking an increase of 67.88.
  • For Diluted EPS (Rs.), as of Mar 24, the value is 150.19. This value is within the healthy range. It has increased from 82.31 (Mar 23) to 150.19, marking an increase of 67.88.
  • For Cash EPS (Rs.), as of Mar 24, the value is 176.56. This value is within the healthy range. It has increased from 110.18 (Mar 23) to 176.56, marking an increase of 66.38.
  • For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 896.23. It has increased from 789.21 (Mar 23) to 896.23, marking an increase of 107.02.
  • For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 896.23. It has increased from 789.21 (Mar 23) to 896.23, marking an increase of 107.02.
  • For Revenue From Operations / Share (Rs.), as of Mar 24, the value is 1,059.61. It has increased from 970.24 (Mar 23) to 1,059.61, marking an increase of 89.37.
  • For PBDIT / Share (Rs.), as of Mar 24, the value is 213.83. This value is within the healthy range. It has increased from 152.70 (Mar 23) to 213.83, marking an increase of 61.13.
  • For PBIT / Share (Rs.), as of Mar 24, the value is 188.79. This value is within the healthy range. It has increased from 126.73 (Mar 23) to 188.79, marking an increase of 62.06.
  • For PBT / Share (Rs.), as of Mar 24, the value is 169.23. This value is within the healthy range. It has increased from 109.14 (Mar 23) to 169.23, marking an increase of 60.09.
  • For Net Profit / Share (Rs.), as of Mar 24, the value is 151.52. This value is within the healthy range. It has increased from 84.22 (Mar 23) to 151.52, marking an increase of 67.30.
  • For NP After MI And SOA / Share (Rs.), as of Mar 24, the value is 150.21. This value is within the healthy range. It has increased from 82.32 (Mar 23) to 150.21, marking an increase of 67.89.
  • For PBDIT Margin (%), as of Mar 24, the value is 20.18. This value is within the healthy range. It has increased from 15.73 (Mar 23) to 20.18, marking an increase of 4.45.
  • For PBIT Margin (%), as of Mar 24, the value is 17.81. This value is within the healthy range. It has increased from 13.06 (Mar 23) to 17.81, marking an increase of 4.75.
  • For PBT Margin (%), as of Mar 24, the value is 15.97. This value is within the healthy range. It has increased from 11.24 (Mar 23) to 15.97, marking an increase of 4.73.
  • For Net Profit Margin (%), as of Mar 24, the value is 14.29. This value exceeds the healthy maximum of 10. It has increased from 8.67 (Mar 23) to 14.29, marking an increase of 5.62.
  • For NP After MI And SOA Margin (%), as of Mar 24, the value is 14.17. This value is within the healthy range. It has increased from 8.48 (Mar 23) to 14.17, marking an increase of 5.69.
  • For Return on Networth / Equity (%), as of Mar 24, the value is 17.41. This value is within the healthy range. It has increased from 10.88 (Mar 23) to 17.41, marking an increase of 6.53.
  • For Return on Capital Employeed (%), as of Mar 24, the value is 19.49. This value is within the healthy range. It has increased from 15.07 (Mar 23) to 19.49, marking an increase of 4.42.
  • For Return On Assets (%), as of Mar 24, the value is 11.52. This value is within the healthy range. It has increased from 7.15 (Mar 23) to 11.52, marking an increase of 4.37.
  • For Long Term Debt / Equity (X), as of Mar 24, the value is 0.00. This value is below the healthy minimum of 0.2. There is no change compared to the previous period (Mar 23) which recorded 0.00.
  • For Total Debt / Equity (X), as of Mar 24, the value is 0.11. This value is within the healthy range. It has decreased from 0.14 (Mar 23) to 0.11, marking a decrease of 0.03.
  • For Asset Turnover Ratio (%), as of Mar 24, the value is 0.86. It has increased from 0.83 (Mar 23) to 0.86, marking an increase of 0.03.
  • For Current Ratio (X), as of Mar 24, the value is 2.61. This value is within the healthy range. It has increased from 2.35 (Mar 23) to 2.61, marking an increase of 0.26.
  • For Quick Ratio (X), as of Mar 24, the value is 1.94. This value is within the healthy range. It has increased from 1.65 (Mar 23) to 1.94, marking an increase of 0.29.
  • For Inventory Turnover Ratio (X), as of Mar 24, the value is 1.25. This value is below the healthy minimum of 4. It has increased from 1.09 (Mar 23) to 1.25, marking an increase of 0.16.
  • For Dividend Payout Ratio (NP) (%), as of Mar 24, the value is 29.96. This value is within the healthy range. It has decreased from 53.45 (Mar 23) to 29.96, marking a decrease of 23.49.
  • For Dividend Payout Ratio (CP) (%), as of Mar 24, the value is 25.68. This value is within the healthy range. It has decreased from 40.63 (Mar 23) to 25.68, marking a decrease of 14.95.
  • For Earning Retention Ratio (%), as of Mar 24, the value is 70.04. This value exceeds the healthy maximum of 70. It has increased from 46.55 (Mar 23) to 70.04, marking an increase of 23.49.
  • For Cash Earning Retention Ratio (%), as of Mar 24, the value is 74.32. This value exceeds the healthy maximum of 70. It has increased from 59.37 (Mar 23) to 74.32, marking an increase of 14.95.
  • For Interest Coverage Ratio (X), as of Mar 24, the value is 22.74. This value is within the healthy range. It has increased from 17.00 (Mar 23) to 22.74, marking an increase of 5.74.
  • For Interest Coverage Ratio (Post Tax) (X), as of Mar 24, the value is 18.20. This value is within the healthy range. It has increased from 11.34 (Mar 23) to 18.20, marking an increase of 6.86.
  • For Enterprise Value (Cr.), as of Mar 24, the value is 59,097.05. It has increased from 39,701.27 (Mar 23) to 59,097.05, marking an increase of 19,395.78.
  • For EV / Net Operating Revenue (X), as of Mar 24, the value is 4.67. This value exceeds the healthy maximum of 3. It has increased from 3.42 (Mar 23) to 4.67, marking an increase of 1.25.
  • For EV / EBITDA (X), as of Mar 24, the value is 23.12. This value exceeds the healthy maximum of 15. It has increased from 21.75 (Mar 23) to 23.12, marking an increase of 1.37.
  • For MarketCap / Net Operating Revenue (X), as of Mar 24, the value is 4.66. This value exceeds the healthy maximum of 3. It has increased from 3.50 (Mar 23) to 4.66, marking an increase of 1.16.
  • For Retention Ratios (%), as of Mar 24, the value is 70.03. This value exceeds the healthy maximum of 70. It has increased from 46.54 (Mar 23) to 70.03, marking an increase of 23.49.
  • For Price / BV (X), as of Mar 24, the value is 5.73. This value exceeds the healthy maximum of 3. It has increased from 4.49 (Mar 23) to 5.73, marking an increase of 1.24.
  • For Price / Net Operating Revenue (X), as of Mar 24, the value is 4.66. This value exceeds the healthy maximum of 3. It has increased from 3.50 (Mar 23) to 4.66, marking an increase of 1.16.
  • For EarningsYield, as of Mar 24, the value is 0.03. This value is below the healthy minimum of 5. It has increased from 0.02 (Mar 23) to 0.03, marking an increase of 0.01.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Alkem Laboratories Ltd as of April 17, 2025 is: 4,131.42

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.

As of April 17, 2025, Alkem Laboratories Ltd is Overvalued by 15.86% compared to the current share price 4,910.00

Intrinsic Value of Alkem Laboratories Ltd as of April 17, 2025 is: 4,392.46

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • 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.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of April 17, 2025, Alkem Laboratories Ltd is Overvalued by 10.54% compared to the current share price 4,910.00

Last 5 Year EPS CAGR: 6.32%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.50%, which is a positive sign.
  2. The company has higher reserves (6,073.15 cr) compared to borrowings (1,354.92 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (7.00 cr) and profit (389.62 cr) over the years.
  1. The stock has a high average Working Capital Days of 94.75, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 147.42, which may not be favorable.

Stock Analysis

  • 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: 14.29%
      • 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: 19.49% (Industry Average ROCE: 15.87%)
      • 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%: 17.41% (Industry Average ROE: 15.77%)
      • 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): 18.2
      • 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: 1.94
      • 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: 27.2 (Industry average Stock P/E: 34.6)
      • 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: 0.11
      • 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:

About the Company - Qualitative Analysis

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. 9747.72 Cr. and Equity Capital is Rs. 23.91 Cr. for the Year ended 31/03/2024.
INDUSTRYADDRESSCONTACT
PharmaceuticalsAlkem House, Senapati Bapat Marg, 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
Mr. Narendra Kumar AnejaIndependent Director

FAQ

What is the intrinsic value of Alkem Laboratories Ltd?

Alkem Laboratories Ltd's intrinsic value (as of 17 April 2025) is ₹4131.42 — 15.86% lower the current market price of 4,910.00, indicating overvalued. Calculated using the PE ratio method, this valuation considers the company's 58,712 Cr. market cap, FY2025-2026 high/low of ₹6,440/4,407, reserves of 11,469 Cr, and liabilities of 17,117 Cr.

What is the Market Cap of Alkem Laboratories Ltd?

The Market Cap of Alkem Laboratories Ltd is 58,712 Cr..

What is the current Stock Price of Alkem Laboratories Ltd as on 17 April 2025?

The current stock price of Alkem Laboratories Ltd as on 17 April 2025 is 4,910.

What is the High / Low of Alkem Laboratories Ltd stocks in FY 2025-2026?

In FY 2025-2026, the High / Low of Alkem Laboratories Ltd stocks is ₹6,440/4,407.

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

The Stock P/E of Alkem Laboratories Ltd is 27.2.

What is the Book Value of Alkem Laboratories Ltd?

The Book Value of Alkem Laboratories Ltd is 961.

What is the Dividend Yield of Alkem Laboratories Ltd?

The Dividend Yield of Alkem Laboratories Ltd is 0.80 %.

What is the ROCE of Alkem Laboratories Ltd?

The ROCE of Alkem Laboratories Ltd is 19.7 %.

What is the ROE of Alkem Laboratories Ltd?

The ROE of Alkem Laboratories Ltd is 19.6 %.

What is the Face Value of Alkem Laboratories Ltd?

The Face Value of Alkem Laboratories Ltd is 2.00.

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