ScoreWhy is Alkem Laboratories Ltd ?
1
High Management Efficiency with a high ROE of 16.88%
2
The company is Net-Debt Free
3
Poor long term growth as Operating profit has grown by an annual rate 9.33% of over the last 5 years
4
Negative results in Mar 26
- OPERATING PROFIT TO INTEREST (Q) Lowest at 9.60 times
- INTEREST(Q) Highest at Rs 53.88 cr
- NON-OPERATING INCOME(Q) is 35.87 % of Profit Before Tax (PBT)
5
With ROE of 17.5, it has a Fair valuation with a 5 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 14.35%, its profits have risen by 11.5% ; the PEG ratio of the company is 2.5
6
Reducing Promoter Confidence
- Promoters have decreased their stake in the company by -1.5% over the previous quarter and currently hold 49.7% of the company
- Promoters decreasing their stake may signify reduced confidence in the future of the business
7
Market Beating performance in long term as well as near term
- Along with generating 14.35% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Alkem Lab should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Alkem Lab for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Alkem Lab
14.32%
0.64
22.23%
Sensex
-3.81%
-0.28
13.58%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.63%
EBIT Growth (5y)
9.33%
EBIT to Interest (avg)
19.37
Debt to EBITDA (avg)
0.83
Net Debt to Equity (avg)
-0.03
Sales to Capital Employed (avg)
1.00
Tax Ratio
18.03%
Dividend Payout Ratio
24.84%
Pledged Shares
0
Institutional Holding
33.05%
ROCE (avg)
19.68%
ROE (avg)
16.88%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
29
Industry P/E
27
Price to Book Value
5.03
EV to EBIT
26.34
EV to EBITDA
22.99
EV to Capital Employed
5.16
EV to Sales
4.70
PEG Ratio
2.50
Dividend Yield
0.88%
ROCE (Latest)
19.58%
ROE (Latest)
17.48%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
ROCE(HY)
Highest at 20.21%
PBT LESS OI(Q)
At Rs 357.75 cr has Grown at 42.88%
-12What is not working for the Company
OPERATING PROFIT TO INTEREST (Q)
Lowest at 9.60 times
INTEREST(Q)
Highest at Rs 53.88 cr
NON-OPERATING INCOME(Q)
is 35.87 % of Profit Before Tax (PBT
EPS(Q)
Lowest at Rs 19.78
Loading Valuation Snapshot...
Here's what is working for Alkem Lab
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 357.75 cr has Grown at 42.88%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Here's what is not working for Alkem Lab
Interest - Quarterly
At Rs 53.88 cr has Grown at 27.98%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 9.60 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest - Quarterly
Highest at Rs 53.88 cr
in the last five quarters and Increased by 27.98 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Non Operating Income - Quarterly
is 35.87 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Earnings per Share (EPS) - Quarterly
Lowest at Rs 19.78
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Non Operating Income - Quarterly
Highest at Rs 200.07 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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