ScoreWhy is Alkem Laboratories Ltd ?
1
High Management Efficiency with a high ROE of 16.90%
2
Company has a low Debt to Equity ratio (avg) at 0 times
3
Poor long term growth as Operating profit has grown by an annual rate 8.56% of over the last 5 years
4
Flat results in Sep 25
- CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 1,547.65 cr
- DEBTORS TURNOVER RATIO(HY) Lowest at 4.49 times
5
With ROE of 17.6, it has a Fair valuation with a 4.9 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 -2.78%, its profits have risen by 7.8% ; the PEG ratio of the company is 3.6
6
Reducing Promoter Confidence
- Promoters have decreased their stake in the company by -1.84% over the previous quarter and currently hold 51.2% of the company
- Promoters decreasing their stake may signify reduced confidence in the future of the business
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?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Alkem Lab
0.35%
-0.12
22.60%
Sensex
4.56%
0.45
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.07%
EBIT Growth (5y)
8.56%
EBIT to Interest (avg)
20.99
Debt to EBITDA (avg)
0.85
Net Debt to Equity (avg)
-0.05
Sales to Capital Employed (avg)
1.00
Tax Ratio
13.69%
Dividend Payout Ratio
24.84%
Pledged Shares
0
Institutional Holding
31.41%
ROCE (avg)
20.14%
ROE (avg)
16.90%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
28
Industry P/E
34
Price to Book Value
4.93
EV to EBIT
26.82
EV to EBITDA
23.21
EV to Capital Employed
5.13
EV to Sales
4.70
PEG Ratio
3.60
Dividend Yield
0.82%
ROCE (Latest)
19.13%
ROE (Latest)
17.61%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
NET SALES(Q)
Highest at Rs 4,000.99 cr
PBDIT(Q)
Highest at Rs 920.77 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 23.01%
PBT LESS OI(Q)
Highest at Rs 792.14 cr.
PAT(Q)
Highest at Rs 765.06 cr.
EPS(Q)
Highest at Rs 63.99
-3What is not working for the Company
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 1,547.65 cr
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.49 times
Loading Valuation Snapshot...
Here's what is working for Alkem Lab
Net Sales - Quarterly
Highest at Rs 4,000.99 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 920.77 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 23.01%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 792.14 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 792.14 cr has Grown at 22.66%
Year on Year (YoY)MOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 765.06 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 63.99
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Alkem Lab
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 1,547.65 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio- Half Yearly
Lowest at 4.49 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
