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5395

Alkem LaboratoriesBSE:539523 Stock Report

Last Price

₹3.45k

Market Cap

₹413.0b

7D

-1.4%

1Y

12.9%

Updated

26 Jan, 2022

Data

Company Financials +
539523 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance3/6
Financial Health5/6
Dividends3/6

539523 Stock Overview

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

Alkem Laboratories Competitors

Sun Pharmaceutical Industries

NSEI:SUNPHARMA

₹1.9t

Dr. Reddy's Laboratories

BSE:500124

₹731.3b

Cipla

NSEI:CIPLA

₹730.7b

Torrent Pharmaceuticals

BSE:500420

₹534.8b

Price History & Performance

Summary of all time highs, changes and price drops for Alkem Laboratories
Historical stock prices
Current Share Price₹3,454.25
52 Week High₹4,067.70
52 Week Low₹2,544.25
Beta0.27
1 Month Change-0.65%
3 Month Change-6.42%
1 Year Change12.90%
3 Year Change84.66%
5 Year Change103.63%
Change since IPO150.05%

Recent News & Updates

Shareholder Returns

539523IN PharmaceuticalsIN Market
7D-1.4%-4.2%-4.9%
1Y12.9%6.2%30.7%

Return vs Industry: 539523 exceeded the Indian Pharmaceuticals industry which returned 6.2% over the past year.

Return vs Market: 539523 underperformed the Indian Market which returned 30.7% over the past year.

Price Volatility

Is 539523's price volatile compared to industry and market?
539523 volatility
539523 Average Weekly Movement4.0%
Pharmaceuticals Industry Average Movement6.0%
Market Average Movement6.8%
10% most volatile stocks in IN Market10.1%
10% least volatile stocks in IN Market4.1%

Stable Share Price: 539523 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 539523's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197315,357Sandeep Singhhttps://www.alkemlabs.com

Alkem Laboratories Limited, a pharmaceutical company, develops, manufactures, and sells pharmaceutical and nutraceutical products in India and internationally. The company offers branded generics, generic drugs, active pharmaceutical ingredients, and nutraceuticals in acute and chronic therapeutic areas comprising anti-infective, dermatology, diabetology, cardiology, gastroenterology, osteoporosis, central nervous system, oncology, urology, and gynaecology, as well as vitamins, minerals, and nutrients; and pain relief/analgesic, anti-diabetic, and neurology products. It also provides pregnancy detection kits and condoms.

Alkem Laboratories Fundamentals Summary

How do Alkem Laboratories's earnings and revenue compare to its market cap?
539523 fundamental statistics
Market Cap₹413.01b
Earnings (TTM)₹17.03b
Revenue (TTM)₹100.42b

24.2x

P/E Ratio

4.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
539523 income statement (TTM)
Revenue₹100.42b
Cost of Revenue₹40.60b
Gross Profit₹59.82b
Expenses₹42.79b
Earnings₹17.03b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 04, 2022

Earnings per share (EPS)142.46
Gross Margin59.57%
Net Profit Margin16.96%
Debt/Equity Ratio20.0%

How did 539523 perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

4%

Payout Ratio

Valuation

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

24.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 539523 (₹3454.25) is trading above our estimate of fair value (₹2780.97)

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


Price To Earnings Ratio

PE vs Industry: 539523 is good value based on its PE Ratio (24.2x) compared to the Indian Pharmaceuticals industry average (25.2x).

PE vs Market: 539523 is poor value based on its PE Ratio (24.2x) compared to the Indian market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: 539523 is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: 539523 is overvalued based on its PB Ratio (5x) compared to the IN Pharmaceuticals industry average (3.1x).


Future Growth

How is Alkem Laboratories forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 539523's forecast earnings growth (12.7% per year) is above the savings rate (6.7%).

Earnings vs Market: 539523's earnings (12.7% per year) are forecast to grow slower than the Indian market (21.3% per year).

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

Revenue vs Market: 539523's revenue (10.5% per year) is forecast to grow slower than the Indian market (13.1% per year).

High Growth Revenue: 539523's revenue (10.5% 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 high in 3 years time (20.1%)


Past Performance

How has Alkem Laboratories performed over the past 5 years?

20.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 539523 has high quality earnings.

Growing Profit Margin: 539523's current net profit margins (17%) are lower than last year (17%).


Past Earnings Growth Analysis

Earnings Trend: 539523's earnings have grown significantly by 20.7% per year over the past 5 years.

Accelerating Growth: 539523's earnings growth over the past year (16.3%) is below its 5-year average (20.7% per year).

Earnings vs Industry: 539523 earnings growth over the past year (16.3%) underperformed the Pharmaceuticals industry 29.7%.


Return on Equity

High ROE: 539523's Return on Equity (20.5%) is considered high.


Financial Health

How is Alkem Laboratories's financial position?


Financial Position Analysis

Short Term Liabilities: 539523's short term assets (₹76.9B) exceed its short term liabilities (₹37.1B).

Long Term Liabilities: 539523's short term assets (₹76.9B) exceed its long term liabilities (₹4.3B).


Debt to Equity History and Analysis

Debt Level: 539523 has more cash than its total debt.

Reducing Debt: 539523's debt to equity ratio has increased from 15.5% to 20% over the past 5 years.

Debt Coverage: 539523's debt is well covered by operating cash flow (77.3%).

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


Balance Sheet


Dividend

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

0.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 539523's dividend (0.87%) is higher than the bottom 25% of dividend payers in the Indian market (0.31%).

High Dividend: 539523's dividend (0.87%) is low compared to the top 25% of dividend payers in the Indian market (1.37%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (3.5%), 539523's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 539523's dividends in 3 years are forecast to be well covered by earnings (19.6% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Pharmaceuticals & Biotech industry.

Management

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

5.9yrs

Average management tenure


CEO

Sandeep Singh (39 yo)

no data

Tenure

₹117,200,000

Compensation

Mr. Sandeep Derjit Singh has been Managing Director of Alkem Laboratories Limited since October 17, 2017. Mr. Singh served as Joint Managing Director of Alkem Laboratories Limited since February 20, 2015 u...


CEO Compensation Analysis

Compensation vs Market: Sandeep's total compensation ($USD1.57M) is above average for companies of similar size in the Indian market ($USD765.90K).

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


Leadership Team

Experienced Management: 539523's management team is seasoned and experienced (5.9 years average tenure).


Board Members

Experienced Board: 539523's board of directors are considered experienced (6.8 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 employee growth, exchange listings and data sources


Key Information

  • Name: Alkem Laboratories Limited
  • Ticker: 539523
  • Exchange: BSE
  • Founded: 1973
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: ₹413.007b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 12:03
End of Day Share Price2022/01/25 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.