Alkem Laboratories Ltd (NSE: ALKEM): Stocks to buy: Top pharmaceutical business Alkem Laboratories released strong results during the December quarter and the brokerage has advised investors to purchase this stock.
The old target price was raised to 20 percent. The CEO believes that the firm’s impressive results will keep going.
The company also offered a huge dividend of 35 shares to shareholders. The share was traded at 5328 (Alkem Laboratories Share Price) and hit the record-breaking high of Rs 5420 during its intraday.
Alkem Laboratories Share Price Target
A domestic company Nuvama has raised the price target of Alkem Laboratories from Rs 4980 to Rs 6130. The share is currently at a record high of 5328 rupees.
The brokerage claimed that during Q3 the company had a better performance than it expected in terms of revenue/EBITDA/PAT.
Profit margins were strong thanks to the low operating expenses. The margin guidance remains healthy. Research expenditure is also limited.
The performance of operations at the business has improved under the guidance of the CEO who has been appointed.
The main focus is slowly growing and keeping that EBITDA margin. It is currently 16-17 percent.
The management hopes to increase the percentage to 20 percent over the next two years.
Alkem Laboratories Dividend Details
The company has declared an interim dividend of 1750 percent, at a rate of 35 rupees per share with a face value of Rs 2.
The dividend is due beginning on the first day of March. The date of record (Alkem Laboratories Dividend Record Date) was fixed for 17 February.
In the past, the company had declared the final dividend amounting to Rs 10. Its dividend payout is approximately 0.95 percent.
Alkem Laboratories Q3 Results
The revenue for the third quarter was the figure of 3323.9 crore, a rise of 9.3 percent.
Indian sales were Rs 2232.8 crore, which is an increase of 12.1 percent, while international sales reached Rs 1024 crore, a rise of 3.1 percent.
EBITDA was up 18.1 percent to 707.6 crore. EBITDA margin was 21.3 percent, as compared to 19.7 percent a year ago.
Research expenses accounted for 3.3 percent of sales. This was 4.3 percent a year ago. Net profit was 595 crore, a rise of 30.8 percent.
PBT (Profit before Tax) was 706.2 crore which is an increase of 31 percent.
About Alkem Laboratories Ltd Company
Alkem Laboratories Limited is an Indian-based business. The company was founded on August 8, 1973, in Maharashtra.
It is engaged in nutraceutical and pharmaceutical manufacturing, development, and distribution with global operations.
It provides products like Anti Infective, Dermatology, Gynecology, Cardiology, Diabetology, Gastroenterology, Rheumatology, Osteoporosis, central nervous system (CNS), Oncology, Urology, Vitamins, Nutrition and Mineral.
The Company’s trademark products include Clavam, Pan-D, Pan, Taxim-O Xone, A To Z NS, Taxim, Pipzo, Gemcal, and Ondem.
It is one of its segments, Pharmaceuticals. The company’s total operating revenues are 9054.55 crores while its equity capital of Rs 23.91 crores.
Fundamental Analysis of Alkem Laboratories Ltd
| Market Cap | ₹ 63,703 Cr. |
| Current Price | ₹ 5,342 |
| 52-wk High | ₹ 5,420 |
| 52-wk Low | ₹ 3,042.30 |
| Stock P/E | 44.57 |
| Book Value | ₹ 823 |
| Dividend | 0.66 % |
| ROCE | 13.7 % |
| ROE | 12.1 % |
| Face Value | ₹ 2.00 |
| P/B Value | 6.47 |
| OPM | 17.4 % |
| EPS | ₹ 132 |
| Debt | ₹ 1,441 Cr. |
| Debt to Equity | 0.15 |
Alkem Laboratories Ltd Share Price Target 2024 To 2030
| Year | 1st Target | 2nd Target |
| 2024 | ₹4980 | ₹6130 |
| 2025 | ₹6233 | ₹6548 |
| 2026 | ₹6600 | ₹6984 |
| 2027 | ₹7145 | ₹7315 |
| 2028 | ₹7452 | ₹7884 |
| 2029 | ₹8000 | ₹8325 |
| 2030 | ₹8564 | ₹8845 |
Alkem Laboratories Ltd Shareholding Pattern
| Promoters Holding | |
| Dec 2022 | 57.16% |
| Mar 2023 | 57.16% |
| June 2023 | 57.16% |
| Sept 2023 | 56.74% |
| Dec 2023 | 56.74% |
| FII Holding | |
| Dec 2022 | 4.41% |
| Mar 2023 | 4.44% |
| June 2023 | 5.63% |
| Sept 2023 | 6.03% |
| Dec 2023 | 8.49% |
| DII Holding | |
| Dec 2022 | 16.44% |
| Mar 2023 | 16.69% |
| June 2023 | 16.34% |
| Sept 2023 | 17.63% |
| Dec 2023 | 15.91% |
| Public Holding | |
| Dec 2022 | 21.99% |
| Mar 2023 | 21.69% |
| June 2023 | 20.85% |
| Sept 2023 | 19.58% |
| Dec 2023 | 18.86% |
Alkem Laboratories Ltd Share: Last 5 Years’ Financial Condition
To gain a better understanding of how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹ 7,357 Cr |
| 2020 | ₹ 8,344 Cr |
| 2021 | ₹ 8,865 Cr |
| 2022 | ₹ 10,634 Cr |
| 2023 | ₹ 12,634 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ 774 Cr |
| 2020 | ₹ 1,149 Cr |
| 2021 | ₹ 1,618 Cr |
| 2022 | ₹ 1,680 Cr |
| 2023 | ₹ 1,575 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 0.17 |
| 2020 | 0.26 |
| 2021 | 0.23 |
| 2022 | 0.3 |
| 2023 | 0.15 |
Last 10 Years’ Profit Growth:
| 10 Years: | 11% |
| 5 Years: | 11% |
| 3 Years: | -2% |
| Current Year: | 64% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | 18% |
| 5 Years: | 18% |
| 3 Years: | 18% |
| Last Year: | 12% |
Sales Growth Over 10 Years:
| 10 Years: | 17% |
| 5 Years: | 13% |
| 3 Years: | 12% |
| Current Year: | 13% |
Conclusion
This article is a complete guide about Alkem Laboratories Ltd Share.
These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
Also, We have talked in detail about the share’s future prospects and growth potential.
Hopefully, these informations will help you in your further investment.
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