BSE:539523

Stock Analysis Report

Executive Summary

Alkem Laboratories Limited, a pharmaceutical company, develops, manufactures, and sells pharmaceutical and nutraceutical products in India, the United States, and internationally.

Snowflake

Fundamentals

Flawless balance sheet with proven 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


Market Performance


7 Day Return

0.6%

539523

3.9%

IN Pharmaceuticals

3.8%

IN Market


1 Year Return

1.0%

539523

-17.5%

IN Pharmaceuticals

6.0%

IN Market

Return vs Industry: 539523 exceeded the Indian Pharmaceuticals industry which returned -17.5% over the past year.

Return vs Market: 539523 underperformed the Indian Market which returned 6% over the past year.


Shareholder returns

539523IndustryMarket
7 Day0.6%3.9%3.8%
30 Day0.6%-4.4%2.9%
90 Day9.0%-2.0%2.9%
1 Year1.9%1.0%-16.8%-17.5%8.2%6.0%
3 Year21.2%18.3%-25.4%-27.0%23.0%16.7%
5 Yearn/a-10.5%-13.2%43.6%30.0%

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?

28.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 539523 (₹1959.65) is trading above our estimate of fair value (₹1164.83)

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 (28.9x) compared to the Pharmaceuticals industry average (15.7x).

PE vs Market: 539523 is poor value based on its PE Ratio (28.9x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: 539523 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 539523 is overvalued based on its PB Ratio (4.3x) compared to the IN Pharmaceuticals industry average (1.5x).


Next Steps

Future Growth

How is Alkem Laboratories forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

17.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 539523's forecast earnings growth (17% per year) is above the savings rate (7.6%).

Earnings vs Market: 539523's earnings (17% per year) are forecast to grow slower than the Indian market (18% per year).

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

Revenue vs Market: 539523's revenue (11.3% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: 539523's revenue (11.3% 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 (17.4%).


Next Steps

Past Performance

How has Alkem Laboratories performed over the past 5 years?

3.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 539523's earnings have grown by 3.9% per year over the past 5 years.

Accelerating Growth: 539523's earnings growth over the past year (16.4%) exceeds its 5-year average (3.9% per year).

Earnings vs Industry: 539523 earnings growth over the past year (16.4%) exceeded the Pharmaceuticals industry 14.4%.


Return on Equity

High ROE: 539523's Return on Equity (14.8%) is considered low.


Return on Assets

ROA vs Industry: 539523 has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: 539523's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Alkem Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: 539523's short term assets (₹42.2B) exceeds its short term liabilities (₹21.9B)

Long Term Liabilities: 539523's short term assets (42.2B) exceeds its long term liabilities (4.5B)


Debt to Equity History and Analysis

Debt Level: 539523's debt to equity ratio (16.8%) is considered satisfactory

Reducing Debt: 539523's debt to equity ratio has reduced from 43.2% to 16.8% over the past 5 years.

Debt Coverage: 539523's debt is well covered by operating cash flow (82.9%).

Interest Coverage: 539523's interest payments on its debt are well covered by EBIT (804.2x coverage).


Balance Sheet

Inventory Level: 539523 has a high level of physical assets or inventory.

Debt Coverage by Assets: 539523's debt is covered by short term assets (assets are 4.496000x debt).


Next Steps

Dividend

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

0.82%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%0.6%markettop25%2.4%industryaverage0.9%forecastin3Years1.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 539523's dividend (0.82%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 539523's dividend (0.82%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).

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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.6%), 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 (24% payout ratio).


Next Steps

Management

What is the CEO of Alkem Laboratories's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average board tenure


CEO

Dhananjay Singh (57yo)

0yrs

Tenure

₹61,400,000

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 ($USD863.86K) is about average for companies of similar size in the Indian market ($USD777.14K).

Compensation vs Earnings: Dhananjay's compensation has increased by more than 20% in the past year.


Board Age and Tenure

4.7yrs

Average Tenure

64yo

Average Age

Experienced Board: 539523's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

Sell₹8,861,17016 Sep 19
Deepak Singh
EntityIndividual
Shares4,781
Max Price₹1,853.41
Sell₹32,375,00013 Sep 19
Deepak Singh
EntityIndividual
Shares17,500
Max Price₹1,850.00
Buy₹6,819,77028 Jun 19
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares4,000
Max Price₹1,707.65
Buy₹11,173,02926 Jun 19
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares6,500
Max Price₹1,731.69
Buy₹6,576,85224 Jun 19
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares3,800
Max Price₹1,733.90
Buy₹11,906,93120 Jun 19
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares6,700
Max Price₹1,790.70
Sell₹18,286,44614 Jun 19
Deepak Singh
EntityIndividual
Shares10,103
Max Price₹1,810.00
Sell₹44,065,81807 Jun 19
Deepak Singh
EntityIndividual
Shares25,000
Max Price₹1,784.52
Sell₹43,670,56101 Apr 19
Deepak Singh
EntityIndividual
Shares25,000
Max Price₹1,746.82
Buy₹1,751,66926 Mar 19
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares1,000
Max Price₹1,765.85
Buy₹877,19826 Mar 19
Basudeo Singh
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares500
Max Price₹1,754.40
Buy₹3,523,34107 Mar 19
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares2,000
Max Price₹1,761.85
Sell₹43,760,73107 Mar 19
Deepak Singh
EntityIndividual
Shares25,000
Max Price₹1,750.43
Buy₹9,878,65607 Mar 19
Dhananjay Singh
EntityIndividual
Role
Co-Chief Executive Officer
Joint MD & Executive Director
Shares5,569
Max Price₹1,775.98
Buy₹3,513,97005 Mar 19
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares2,000
Max Price₹1,756.99
Buy₹8,859,80128 Feb 19
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares5,000
Max Price₹1,773.65
Buy₹12,622,07826 Feb 19
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares7,000
Max Price₹1,815.71
Buy₹41,882,20822 Feb 19
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares23,000
Max Price₹1,853.27
Buy₹3,618,67822 Feb 19
Basudeo Singh
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares2,000
Max Price₹1,809.34
Sell₹651,70103 Jan 19
Deepak Singh
EntityIndividual
Shares343
Max Price₹1,900.00
Buy₹298,48231 Dec 18
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares156
Max Price₹1,913.34
Buy₹1,219,32826 Dec 18
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares655
Max Price₹1,863.45
Buy₹557,52321 Dec 18
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares300
Max Price₹1,858.41
Buy₹48,635,76621 Dec 18
Basudeo Singh
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares26,000
Max Price₹1,876.78
Buy₹4,686,05319 Dec 18
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares2,500
Max Price₹1,885.50
Buy₹5,135,57517 Dec 18
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares2,700
Max Price₹1,903.38
Buy₹572,40611 Dec 18
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares300
Max Price₹1,935.99
Buy₹3,187,20507 Dec 18
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares1,670
Max Price₹1,909.09
Buy₹2,496,36206 Dec 18
Srinivas Singh
EntityIndividual
Shares1,300
Max Price₹1,920.28
Buy₹949,27404 Dec 18
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares500
Max Price₹1,898.62
Buy₹2,471,96504 Dec 18
Sandeep Singh
EntityIndividual
Role
Member of the Board of Directors
MD & Executive Director
Shares1,300
Max Price₹1,901.51
Buy₹9,384,22504 Dec 18
Dhananjay Singh
EntityIndividual
Role
Co-Chief Executive Officer
Joint MD & Executive Director
Shares5,000
Max Price₹1,877.02
Buy₹7,871,68903 Dec 18
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares4,177
Max Price₹1,900.99
Buy₹9,445,92730 Nov 18
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares5,000
Max Price₹1,898.30
Sell₹19,450,00030 Nov 18
Deepak Singh
EntityIndividual
Shares10,000
Max Price₹1,945.00
Buy₹3,515,56929 Nov 18
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares1,823
Max Price₹1,929.81
Buy₹204,13113 Nov 18
Dhananjay Singh
EntityIndividual
Role
Co-Chief Executive Officer
Joint MD & Executive Director
Shares107
Max Price₹1,907.77
Buy₹4,960,00112 Nov 18
Dhananjay Singh
EntityIndividual
Role
Co-Chief Executive Officer
Joint MD & Executive Director
Shares2,600
Max Price₹1,907.69
Buy₹4,701,63712 Nov 18
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares2,500
Max Price₹1,907.69
Buy₹9,493,73309 Nov 18
Mritunjay Singh
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares5,000
Max Price₹1,901.74

Ownership Breakdown


Management Team

  • Basudeo Singh (78yo)

    Executive Chairman

    • Tenure: 4.5yrs
    • Compensation: ₹140.00m
  • Dhananjay Singh (57yo)

    Joint MD & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹61.40m
  • Sandeep Singh (37yo)

    MD & Executive Director

    • Tenure: 6.2yrs
    • Compensation: ₹59.30m
  • Balmiki Singh (64yo)

    Executive Director

    • Tenure: 31yrs
    • Compensation: ₹44.70m
  • Mritunjay Singh (56yo)

    Executive Director

    • Tenure: 11.5yrs
    • Compensation: ₹57.50m
  • Rajesh Dubey (53yo)

    President of Finance

    • Tenure: 0yrs
    • Compensation: ₹21.70m
  • Manish Narang (49yo)

    President of Legal

    • Tenure: 3.3yrs
    • Compensation: ₹13.20m
  • Satyavan Manikani (51yo)

    Assistant Vice President of Strategy and Business Development

    • Tenure: 0yrs
  • Satish Singh (59yo)

    Head of Operations

    • Tenure: 0yrs
  • Gagan Borana

    General Manager of Investor Relations

    • Tenure: 3.7yrs

Board Members

  • Arun Purwar (73yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: ₹1.70m
  • Basudeo Singh (78yo)

    Executive Chairman

    • Tenure: 4.5yrs
    • Compensation: ₹140.00m
  • Ranjal Shenoy (71yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: ₹1.80m
  • Sudha Ravi (64yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: ₹1.70m
  • Sangeeta Singh (58yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: ₹1.70m
  • Dhananjay Singh (57yo)

    Joint MD & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹61.40m
  • Sandeep Singh (37yo)

    MD & Executive Director

    • Tenure: 6.2yrs
    • Compensation: ₹59.30m
  • Balmiki Singh (64yo)

    Executive Director

    • Tenure: 31yrs
    • Compensation: ₹44.70m
  • Mritunjay Singh (56yo)

    Executive Director

    • Tenure: 11.5yrs
    • Compensation: ₹57.50m
  • Akhouri Prasad (78yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: ₹1.70m

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: ₹234.306b
  • 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, the United States, and internationally. It offers branded generic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:48
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.