Alkem Laboratories Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹63,539.23 crore, PE ratio of 35.38, debt-to-equity ratio of 13.24, and return on equity of 17.82%. These figures reflect the company’s financial health and current market valuation.
Content:
- Alkem Laboratories Ltd Overview
- Alkem Laboratories Ltd Financial Results
- Alkem Laboratories Ltd Financial Analysis
- Alkem Laboratories Limited Company Metrics
- Alkem Laboratories Stock Performance
- Alkem Laboratories Peer Comparison
- Alkem Laboratories Shareholding Pattern
- Alkem Laboratories Limited History
- How To Invest In Alkem Laboratories Ltd Share?
- Alkem Laboratories Limited Fundamental Analysis – FAQs
Alkem Laboratories Ltd Overview
Alkem Laboratories Ltd is an Indian pharmaceutical company engaged in the development, manufacture, and sale of pharmaceutical and nutraceutical products. It operates in the pharmaceutical sector, offering a wide range of products across various therapeutic areas.
The company has a market capitalization of ₹63,539.23 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 4.98% below its 52-week high and 54.17% above its 52-week low.
Alkem Laboratories Ltd Financial Results
Alkem Laboratories Ltd reported strong financials in FY 24 with a sales increase to ₹12,668 crore from ₹11,599 crore in FY 23. The company’s equity capital remained stable at ₹23.91 crore, while reserves grew to ₹10,288 crore. Net profit rose to ₹1,811 crore with an EPS of ₹150.19.
1. Revenue Trend: Sales increased from ₹11,599 crore in FY 23 to ₹12,668 crore in FY 24.
2. Equity and Liabilities: Total liabilities grew from ₹13,757 crore in FY 23 to ₹15,575 crore in FY 24, with current liabilities at ₹3,995 crore.
3. Profitability: Operating profit improved from ₹1,609 crore in FY 23 to ₹2,245 crore in FY 24, with an OPM of 18%.
4. Earnings per Share (EPS): EPS significantly increased from ₹82.31 in FY 23 to ₹150.19 in FY 24.
5. Return on Net Worth (RoNW): RoNW improved due to increased reserves and higher net profit.
6. Financial Position: Total assets grew from ₹13,757 crore in FY 23 to ₹15,575 crore in FY 24, with a rise in current assets from ₹8,730 crore to ₹10,412 crore.
Alkem Laboratories Ltd Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 12,668 | 11,599 | 10,634 |
| Expenses | 10,422 | 9,990 | 8,581 |
| Operating Profit | 2,245 | 1,609 | 2,053 |
| OPM % | 18 | 14 | 19 |
| Other Income | 189 | 113 | 148 |
| EBITDA | 2,556 | 1,826 | 2,216 |
| Interest | 112 | 107 | 52 |
| Depreciation | 299 | 310 | 304 |
| Profit Before Tax | 2,023 | 1,305 | 1,844 |
| Tax % | 10 | 23 | 9 |
| Net Profit | 1,811 | 1,007 | 1,680 |
| EPS | 150.19 | 82.31 | 137.63 |
| Dividend Payout % | 23.3 | 60.75 | 24.7 |
* Consolidated Figures in Rs. Crores
Alkem Laboratories Limited Company Metrics
Alkem Laboratories’ market cap is ₹63,539.23 crore with a book value of ₹862 per share. The face value per share is ₹2. Total debt is ₹1,418.41 crore, ROE is 17.82%, and quarterly EBITDA is ₹477.63 crore. The dividend yield stands at 0.75%.
Market Capitalization:
Market Capitalization represents the total market value of Alkem Laboratories’ outstanding shares, amounting to ₹63,539.23 crore.
Book Value:
The book value per share of Alkem Laboratories is ₹862 indicating the value of the company’s net assets divided by its shares outstanding.
Face Value:
The face value of Alkem Laboratories’ shares is ₹2, which is the nominal value of each share as stated on the share certificate.
Asset Turnover Ratio:
The Asset Turnover Ratio of 0.88 measures how efficiently Alkem Laboratories uses its assets to generate sales revenue or sales income.
Total Debt:
The Total Debt of Alkem Laboratories stands at ₹1,418.41 crore, representing the total amount of money the company owes to creditors.
Return on Equity (ROE):
The ROE of 17.82% measures Alkem Laboratories’ profitability by revealing how much profit the company generates with the money shareholders have invested.
EBITDA (Q):
The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Alkem Laboratories is ₹477.63 crore, indicating the company’s operating performance.
Dividend Yield:
The dividend yield of 0.75% shows the annual dividend payment as a percentage of Alkem Laboratories’ current share price, indicating the return on investment from dividends alone.
Alkem Laboratories Stock Performance
Alkem Laboratories Ltd has achieved a 1-year return on investment of 50.6%, a 3-year return of 16.0%, and a 5-year return of 26.5%. These returns illustrate the company’s consistent performance and growth potential for long-term investors.
| Period | Return on Investment (%) |
| 1 Year | 50.6 |
| 3 Years | 16.0 |
| 5 Years | 26.5 |
Example: If an investor had invested ₹1,000 in the stock:
1 year ago, their investment would be worth ₹1,506.
3 years ago, their investment would have grown to approximately ₹1,160.
5 years ago, their investment would have increased to approximately ₹1,265.
Alkem Laboratories Peer Comparison
Alkem Laboratories Ltd has a current market price (CMP) of ₹5,715 and a market capitalization of ₹68,330 crore. With a P/E ratio of 35.38, ROE of 20%, and EPS of ₹172, it has shown a 1-year return of 51% and a dividend yield of 0.71%.Alkem Laboratories Ltd stands out with a CMP of ₹5,715, a market cap of ₹68,330 Cr, and a P/E ratio of 35. It has an ROE of 20%, an EPS of ₹172, and a 1-year return of 51%, showcasing solid profitability compared to its peers.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| Sun Pharma.Inds. | 1,739 | 4,17,328 | 40 | 17 | 43 | 53 | 17 | 0.79 |
| Cipla | 1,596 | 1,28,877 | 29 | 17 | 53 | 28 | 23 | 0.82 |
| Zydus Lifesci. | 1,234 | 1,24,169 | 30 | 21 | 42 | 95 | 22.34 | 0.25 |
| Dr Reddy’s Labs | 6,906 | 1,15,218 | 21 | 21 | 334 | 18.26 | 26.53 | 0.58 |
| Lupin | 2,121 | 96,723 | 43 | 14 | 50 | 94 | 16 | 0.39 |
| Aurobindo Pharma | 1,505 | 88,184 | 25 | 12 | 60 | 68 | 14.1 | 0.31 |
| Mankind Pharma | 2,130 | 85,317 | 46 | 20 | 48 | 18 | 24.57 | – |
| Alkem Lab | 5,715 | 68,330 | 35 | 20 | 172 | 51 | 20 | 0.71 |
Alkem Laboratories Shareholding Pattern
Alkem Laboratories Ltd has a promoter holding of 56.38% in June 2024, down from 56.74% in March 2024, and 57% in December 2023. FIIs hold 8.69%, DIIs hold 18.56%, and retail & others hold 16.37%, showing slight variations across the periods.
| All values in % | Jun-24 | Mar-24 | Dec-23 |
| Promoters | 56.38 | 56.74 | 57 |
| FII | 8.69 | 9.11 | 8.49 |
| DII | 18.56 | 15.63 | 15.91 |
| Retail & others | 16.37 | 18.51 | 18.86 |
Alkem Laboratories Limited History
Alkem Laboratories Limited is a prominent Indian pharmaceutical company with global operations. The company specializes in the development, manufacture, and sale of pharmaceutical and nutraceutical products. Alkem’s product portfolio covers a wide range of therapeutic areas, addressing various medical needs.
The company offers products across multiple therapeutic segments, including Anti-Infective, Dermatology, Diabetology, Cardiology, Gastroenterology, and Central Nervous System (CNS) treatments. This diverse range allows Alkem to cater to a broad spectrum of medical conditions and patient needs.
Alkem Laboratories has established a significant presence both in India and internationally. With 21 manufacturing facilities across India and the United States, the company has a robust production capability. Alkem’s global reach extends to 40 countries, offering approximately 800 brands, demonstrating its strong market position and product diversity.
How To Invest In Alkem Laboratories Ltd Share?
To invest in Alkem Laboratories Ltd shares, begin by opening a demat account with Alice Blue. Complete the necessary KYC process and fund your account with the desired investment amount.
Research the company’s fundamentals, financial performance, and market trends before making an investment decision. Use the trading platform provided by the broker to place a buy order for Alkem Laboratories shares at your preferred price.
Monitor your investment regularly and stay informed about company news and market developments. Consider setting up a systematic investment plan (SIP) for long-term investing in the stock if it aligns with your financial goals.
Alkem Laboratories Limited Fundamental Analysis – FAQs
Fundamental analysis of Alkem Laboratories Ltd examines key financial metrics: Market Cap (₹63,539.23 crore), PE Ratio (35.38), Debt to Equity (13.24), and Return on Equity (17.82%). These indicators provide insights into the company’s financial health, market valuation, and overall performance in the pharmaceutical sector.
The market capitalization of Alkem Laboratories is ₹63,539.23 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Alkem Laboratories Limited is an Indian pharmaceutical company engaged in the development, manufacture, and sale of pharmaceutical and nutraceutical products. It offers a wide range of medicines across various therapeutic areas and operates globally with a strong presence in India and international markets.
Alkem Laboratories is a public limited company, with the Samprada Singh family as the promoters. While the promoter group holds a significant stake, it is a listed company with multiple shareholders including institutional investors and public shareholders.
The main shareholders of Alkem Laboratories Ltd typically include the Samprada Singh family (promoter group) as major stakeholders, along with institutional investors (both domestic and foreign), mutual funds, and public shareholders. For the most current shareholding information, refer to the latest pattern disclosed by the company.
Alkem Laboratories operates in the pharmaceutical industry. It specializes in the research, development, manufacturing, and marketing of pharmaceutical and nutraceutical products. The company is a key player in the Indian pharmaceutical sector with a growing global presence.
To invest in Alkem Laboratories shares, open a demat account with Alice Blue. Complete the KYC process and fund your account. Research the company thoroughly, then use the trading platform to place a buy order for the desired number of shares at your preferred price.
Determining if Alkem Laboratories is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio, and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.
