BSE:539523

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Executive Summary

Alkem Laboratories Limited, a pharmaceutical company, develops, manufactures, and sells pharmaceutical and nutraceutical products in India and internationally. More Details


Snowflake Analysis

Flawless balance sheet with outstanding track record.


Similar Companies

Share Price & News

How has Alkem Laboratories's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 539523 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

539523

-2.7%

IN Pharmaceuticals

-1.6%

IN Market


1 Year Return

31.6%

539523

39.1%

IN Pharmaceuticals

-2.2%

IN Market

Return vs Industry: 539523 underperformed the Indian Pharmaceuticals industry which returned 39.1% over the past year.

Return vs Market: 539523 exceeded the Indian Market which returned -2.2% over the past year.


Shareholder returns

539523IndustryMarket
7 Day1.4%-2.7%-1.6%
30 Day-4.0%-3.9%1.7%
90 Day-1.1%2.1%6.2%
1 Year32.9%31.6%40.8%39.1%-0.4%-2.2%
3 Year41.0%37.6%20.8%17.5%-4.4%-9.0%
5 Yearn/a3.8%0.1%40.4%29.8%

Price Volatility Vs. Market

How volatile is Alkem Laboratories's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Alkem Laboratories undervalued compared to its fair value and its price relative to the market?

23.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 539523 (₹2634.25) is trading above our estimate of fair value (₹1116.39)

Significantly Below Fair Value: 539523 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 539523 is poor value based on its PE Ratio (23.1x) compared to the IN Pharmaceuticals industry average (22.7x).

PE vs Market: 539523 is poor value based on its PE Ratio (23.1x) compared to the Indian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: 539523 is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: 539523 is overvalued based on its PB Ratio (5.1x) compared to the IN Pharmaceuticals industry average (2.2x).


Next Steps

Future Growth

How is Alkem Laboratories forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 539523's forecast earnings growth (10.5% per year) is above the savings rate (7.2%).

Earnings vs Market: 539523's earnings (10.5% per year) are forecast to grow slower than the Indian market (25.6% per year).

High Growth Earnings: 539523's earnings are forecast to grow, but not significantly.

Revenue vs Market: 539523's revenue (11% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: 539523's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 539523's Return on Equity is forecast to be low in 3 years time (19.9%).


Next Steps

Past Performance

How has Alkem Laboratories performed over the past 5 years?

9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 539523 has high quality earnings.

Growing Profit Margin: 539523's current net profit margins (16%) are higher than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: 539523's earnings have grown by 9.8% per year over the past 5 years.

Accelerating Growth: 539523's earnings growth over the past year (68.1%) exceeds its 5-year average (9.8% per year).

Earnings vs Industry: 539523 earnings growth over the past year (68.1%) exceeded the Pharmaceuticals industry 15.7%.


Return on Equity

High ROE: 539523's Return on Equity (22%) is considered high.


Next Steps

Financial Health

How is Alkem Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: 539523's short term assets (₹55.0B) exceed its short term liabilities (₹32.4B).

Long Term Liabilities: 539523's short term assets (₹55.0B) exceed its long term liabilities (₹3.9B).


Debt to Equity History and Analysis

Debt Level: 539523's debt to equity ratio (25.5%) is considered satisfactory.

Reducing Debt: 539523's debt to equity ratio has reduced from 42.1% to 25.5% over the past 5 years.

Debt Coverage: 539523's debt is well covered by operating cash flow (36.4%).

Interest Coverage: 539523 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Alkem Laboratories's current dividend yield, its reliability and sustainability?

0.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 539523's dividend (0.95%) is higher than the bottom 25% of dividend payers in the Indian market (0.55%).

High Dividend: 539523's dividend (0.95%) is low compared to the top 25% of dividend payers in the Indian market (2.32%).


Stability and Growth of Payments

Stable Dividend: 539523 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 539523's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.9%), 539523's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 539523's dividends in 3 years are forecast to be well covered by earnings (23.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average board tenure


CEO

Dhananjay Singh (58 yo)

no data

Tenure

₹72,200,000

Compensation

Mr. Dhananjay Kumar Singh has been Joint Managing Director of Alkem Laboratories Limited since February 20, 2015. Mr. Singh is responsible for marketing (domestic), purchase, human resource development, au ...


CEO Compensation Analysis

Compensation vs Market: Dhananjay's total compensation ($USD968.30K) is about average for companies of similar size in the Indian market ($USD768.56K).

Compensation vs Earnings: Dhananjay's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Basudeo Singh
Executive Chairman5.42yrs₹139.40m12.26%
₹ 38.6b
Dhananjay Singh
Joint MD & Executive Directorno data₹72.20m9.74%
₹ 30.7b
Sandeep Singh
MD & Executive Director7.17yrs₹72.50m0.10%
₹ 316.5m
Sarvesh Singh
VP of Sales & Marketing and Executive Director0.83yr₹13.70m0.067%
₹ 210.2m
Balmiki Singh
Executive Director32yrs₹51.50m0.060%
₹ 188.6m
Mritunjay Singh
Executive Director32.75yrs₹68.00m8.83%
₹ 27.8b
Arun Purwar
Independent Director5.75yrs₹2.00mno data
Ranjal Shenoy
Independent Director5.58yrs₹2.10mno data
Sudha Ravi
Independent Director5.25yrs₹2.00mno data
Sangeeta Singh
Independent Director5.25yrs₹2.10mno data
Dheeraj Sharma
Independent Director3.42yrs₹1.90mno data
Narendra Aneja
Additional Independent Director0.58yrno data0.000050%
₹ 157.5k

5.5yrs

Average Tenure

62yo

Average Age

Experienced Board: 539523's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 539523 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Alkem Laboratories Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alkem Laboratories Limited
  • Ticker: 539523
  • Exchange: BSE
  • Founded: 1973
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹314.964b
  • Shares outstanding: 119.57m
  • Website: https://www.alkemlabs.com

Number of Employees


Location

  • Alkem Laboratories Limited
  • Devashish Building
  • Alkem House
  • Mumbai
  • Maharashtra
  • 400013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALKEMNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2015
539523BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2015

Biography

Alkem Laboratories Limited, a pharmaceutical company, develops, manufactures, and sells pharmaceutical and nutraceutical products in India and internationally. The company offers branded generics, generic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 12:46
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.