Alkem Laboratories
Market Cap
₹236.0b
Last Updated
2019/10/22 12:51 UTC
Data Sources
Company Financials +
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
3.1%
ALKEM
4.0%
IN Pharmaceuticals
2.4%
IN Market
1 Year Return
1.3%
ALKEM
-13.9%
IN Pharmaceuticals
8.0%
IN Market
Return vs Industry: ALKEM exceeded the Indian Pharmaceuticals industry which returned -13.9% over the past year.
Return vs Market: ALKEM underperformed the Indian Market which returned 8% over the past year.
Shareholder returns
| ALKEM | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.1% | 4.0% | 2.4% |
| 30 Day | 1.4% | -2.8% | 2.5% |
| 90 Day | 11.6% | 0.7% | 3.6% |
| 1 Year | 2.2%1.3% | -13.1%-13.9% | 10.3%8.0% |
| 3 Year | 21.6%18.7% | -24.6%-26.2% | 22.3%16.0% |
| 5 Year | n/a | -10.2%-12.9% | 42.8%29.3% |
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
1 week ago | Simply Wall St
With A Return On Equity Of 15%, Has Alkem Laboratories Limited's (NSE:ALKEM) Management Done Well?3 weeks ago | Simply Wall St
What Percentage Of Alkem Laboratories Limited (NSE:ALKEM) Shares Do Insiders Own?1 month ago | Simply Wall St
Don't Sell Alkem Laboratories Limited (NSE:ALKEM) Before You Read ThisValuation
Is Alkem Laboratories undervalued compared to its fair value and its price relative to the market?
29.15x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ALKEM (₹1974.75) is trading above our estimate of fair value (₹1165.21)
Significantly Below Fair Value: ALKEM is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ALKEM is poor value based on its PE Ratio (29.1x) compared to the Pharmaceuticals industry average (15.6x).
PE vs Market: ALKEM is poor value based on its PE Ratio (29.1x) compared to the Indian market (13x).
Price to Earnings Growth Ratio
PEG Ratio: ALKEM is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: ALKEM 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: ALKEM's forecast earnings growth (17% per year) is above the savings rate (7.6%).
Earnings vs Market: ALKEM's earnings (17% per year) are forecast to grow slower than the Indian market (18.4% per year).
High Growth Earnings: ALKEM's earnings are forecast to grow, but not significantly.
Revenue vs Market: ALKEM's revenue (11.3% per year) is forecast to grow faster than the Indian market (11.3% per year).
High Growth Revenue: ALKEM'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: ALKEM'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: ALKEM's earnings have grown by 3.9% per year over the past 5 years.
Accelerating Growth: ALKEM's earnings growth over the past year (16.4%) exceeds its 5-year average (3.9% per year).
Earnings vs Industry: ALKEM earnings growth over the past year (16.4%) exceeded the Pharmaceuticals industry 14.2%.
Return on Equity
High ROE: ALKEM's Return on Equity (14.8%) is considered low.
Return on Assets
ROA vs Industry: ALKEM has a higher Return on Assets than the Pharmaceuticals industry average last year.
Return on Capital Employed
ROCE Improving: ALKEM'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: ALKEM's short term assets (₹42.2B) exceeds its short term liabilities (₹21.9B)
Long Term Liabilities: ALKEM's short term assets (42.2B) exceeds its long term liabilities (4.5B)
Debt to Equity History and Analysis
Debt Level: ALKEM's debt to equity ratio (16.8%) is considered satisfactory
Reducing Debt: ALKEM's debt to equity ratio has reduced from 43.2% to 16.8% over the past 5 years.
Debt Coverage: ALKEM's debt is well covered by operating cash flow (82.9%).
Interest Coverage: ALKEM's interest payments on its debt are well covered by EBIT (804.2x coverage).
Balance Sheet
Inventory Level: ALKEM has a high level of physical assets or inventory.
Debt Coverage by Assets: ALKEM'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?
0.81%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: ALKEM's dividend (0.81%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).
High Dividend: ALKEM's dividend (0.81%) is low compared to the top 25% of dividend payers in the Indian market (2.41%).
Stable Dividend: ALKEM has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: ALKEM'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%), ALKEM's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ALKEM'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 ($USD866.12K) is about average for companies of similar size in the Indian market ($USD811.83K).
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: ALKEM's board of directors are considered experienced (4.7 years average tenure).
Insider Trading
Insider Buying: ALKEM insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 4,781 |
| Max Price | ₹1,853.41 |
| Entity | Individual |
| Shares | 17,500 |
| Max Price | ₹1,850.00 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 4,000 |
| Max Price | ₹1,707.65 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 6,500 |
| Max Price | ₹1,731.69 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 3,800 |
| Max Price | ₹1,733.90 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 6,700 |
| Max Price | ₹1,790.70 |
| Entity | Individual |
| Shares | 10,103 |
| Max Price | ₹1,810.00 |
| Entity | Individual |
| Shares | 25,000 |
| Max Price | ₹1,784.52 |
| Entity | Individual |
| Shares | 25,000 |
| Max Price | ₹1,746.82 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 1,000 |
| Max Price | ₹1,765.85 |
| Entity | Individual |
| Role | Chairman of the Board Executive Chairman |
| Shares | 500 |
| Max Price | ₹1,754.40 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 2,000 |
| Max Price | ₹1,761.85 |
| Entity | Individual |
| Shares | 25,000 |
| Max Price | ₹1,750.43 |
| Entity | Individual |
| Role | Co-Chief Executive Officer Joint MD & Executive Director |
| Shares | 5,569 |
| Max Price | ₹1,775.98 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 2,000 |
| Max Price | ₹1,756.99 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 5,000 |
| Max Price | ₹1,773.65 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 7,000 |
| Max Price | ₹1,815.71 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 23,000 |
| Max Price | ₹1,853.27 |
| Entity | Individual |
| Role | Chairman of the Board Executive Chairman |
| Shares | 2,000 |
| Max Price | ₹1,809.34 |
| Entity | Individual |
| Shares | 343 |
| Max Price | ₹1,900.00 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 156 |
| Max Price | ₹1,913.34 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 655 |
| Max Price | ₹1,863.45 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 300 |
| Max Price | ₹1,858.41 |
| Entity | Individual |
| Role | Chairman of the Board Executive Chairman |
| Shares | 26,000 |
| Max Price | ₹1,876.78 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 2,500 |
| Max Price | ₹1,885.50 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 2,700 |
| Max Price | ₹1,903.38 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 300 |
| Max Price | ₹1,935.99 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 1,670 |
| Max Price | ₹1,909.09 |
| Entity | Individual |
| Shares | 1,300 |
| Max Price | ₹1,920.28 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 500 |
| Max Price | ₹1,898.62 |
| Entity | Individual |
| Role | Member of the Board of Directors MD & Executive Director |
| Shares | 1,300 |
| Max Price | ₹1,901.51 |
| Entity | Individual |
| Role | Co-Chief Executive Officer Joint MD & Executive Director |
| Shares | 5,000 |
| Max Price | ₹1,877.02 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 4,177 |
| Max Price | ₹1,900.99 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 5,000 |
| Max Price | ₹1,898.30 |
| Entity | Individual |
| Shares | 10,000 |
| Max Price | ₹1,945.00 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 1,823 |
| Max Price | ₹1,929.81 |
| Entity | Individual |
| Role | Co-Chief Executive Officer Joint MD & Executive Director |
| Shares | 107 |
| Max Price | ₹1,907.77 |
| Entity | Individual |
| Role | Co-Chief Executive Officer Joint MD & Executive Director |
| Shares | 2,600 |
| Max Price | ₹1,907.69 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 2,500 |
| Max Price | ₹1,907.69 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 5,000 |
| 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: ALKEM
- Exchange: NSEI
- Founded: 1973
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Market Cap: ₹236.039b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ALKEM | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Dec 2015 |
| 539523 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Dec 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/22 12:51 |
| End of Day Share Price | 2019/10/22 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2019/03/31 |
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.