ScoreWhy is Alkem Laboratories Ltd ?
1
High Management Efficiency with a high ROE of 16.90%
2
The company is Net-Debt Free
3
Poor long term growth as Operating profit has grown by an annual rate 8.21% of over the last 5 years
4
Flat results in Dec 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 Attractive 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 10.69%, its profits have risen by 11.1% ; the PEG ratio of the company is 2.5
6
High Institutional Holdings at 31.55%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
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, High Return
Absolute
Risk Adjusted
Volatility
Alkem Lab
10.69%
0.45
23.72%
Sensex
-3.33%
-0.25
13.43%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.29%
EBIT Growth (5y)
8.21%
EBIT to Interest (avg)
20.79
Debt to EBITDA (avg)
0.85
Net Debt to Equity (avg)
-0.05
Sales to Capital Employed (avg)
1.00
Tax Ratio
14.76%
Dividend Payout Ratio
24.84%
Pledged Shares
0
Institutional Holding
31.55%
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
4.96
EV to EBIT
26.32
EV to EBITDA
22.76
EV to Capital Employed
5.16
EV to Sales
4.60
PEG Ratio
2.48
Dividend Yield
0.92%
ROCE (Latest)
19.13%
ROE (Latest)
17.61%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Sideways
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-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 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."
