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 Net Sales has grown by an annual rate of 9.44% and Operating profit at 8.73% over the last 5 years
4
Flat results in Jun 26
- PAT(Q) At Rs 519.95 cr has Fallen at -20.4%
- INTEREST(Latest six months) At Rs 100.50 cr has Grown at 30.32%
5
With ROE of 17.5, it has a Attractive valuation with a 4.8 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 0.42%, its profits have risen by 0.4% ; the PEG ratio of the company is 28.8
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 0.42% 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
0.42%
0.02
21.56%
Sensex
-10.5%
-0.78
13.50%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.44%
EBIT Growth (5y)
8.73%
EBIT to Interest (avg)
17.35
Debt to EBITDA (avg)
0.83
Net Debt to Equity (avg)
-0.03
Sales to Capital Employed (avg)
1.00
Tax Ratio
23.18%
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
37
Price to Book Value
4.76
EV to EBIT
24.78
EV to EBITDA
21.55
EV to Capital Employed
4.88
EV to Sales
4.33
PEG Ratio
28.83
Dividend Yield
0.96%
ROCE (Latest)
19.58%
ROE (Latest)
17.48%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
ROCE(HY)
Highest at 20.21%
-8What is not working for the Company
PAT(Q)
At Rs 519.95 cr has Fallen at -20.4%
INTEREST(Latest six months)
At Rs 100.50 cr has Grown at 30.32%
Loading Valuation Snapshot...
Here's what is not working for Alkem Lab
Profit After Tax (PAT) - Quarterly
At Rs 519.95 cr has Fallen at -20.4%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Latest six months
At Rs 100.50 cr has Grown at 30.32%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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