Alkem Laboratories

Pharmaceutical generics, formulations and neutraceutricals

Headquartered in Mumbai, Maharashtra

Founded in 1973


Legal Name: Alkem Laboratories Limited

Listed in: December 2015

- BSE Ticker 539523

- NSE Ticker ALKEM

The simplest but most relevant analysis you will find on the Company. Read slowly, think carefully & you might agree !.... Do comment at the end for any clarification/ views.

Information last updated - June 29, 2020


Decent long term compounding story.

Sector Interest

😘 Flavor of the season.


πŸ™‚ Decent business growth, stable margins, ok cash generation. Low debt.


πŸ™‚ Long term chart broken out in Jan 20 and retested the breakout in Mar and May 20


πŸ™‚ Good promoter driven Company with a solid professional board.


πŸ™‚ Closer to the lower end of historical valuation band.

Investor Interest

πŸ™‚ Decent. Institutions have been accumulating from public.



  • Amongst top ten pharma companies in India
  • Leadership position in anti infectives segment
  • Able management with strong professional board
  • Low net debt levels
  • Consistent business growth and stable margins


  • Significant (40%) business is from overseas
  • Cash flow from operations are volatile vis-a-vis business growth and margins
  • Valuations are not overly attractive


  • Disruptions caused due to Covid2019. Surgeries are postponed impacting Company's anti infectives
  • Regulatory approvals


  • Improving performance in the chronic therapy segments like Neuro / CNS, Derma and Anti-Diabetes
  • Significantly growing Vitamins/ Minerals / Nutrients segment. This segment shall continue to find more and more acceptance in the post Covid2019 world
  • As on March 31, 2020, the Company has filed a total of 144 ANDAs (including 2 NDA) with the US FDA and has received 89 approvals (including 13 tentative approvals and 2NDAs)

Management Quality

  • Alkem is currently run by Sandeep Singh (MD). He is from the promoter family and is associated with the Company since 2003.
  • Based on my reading so far, he seems reasonable and well regarded.
  • The pedigree of people on the Board further testifies towards the corporate governance standards at the Company.
Click here for Alkem’s Board of Directors  


Auditors - B S R & Co. LLP

Bankers - Citi, HDFC, HSBC, Kotak Mahindra, SBI & others

Credit Rating - Crisil (AA+ Stable, A1+), Fitch - IND A1+

  • Company has a strong credit rating
  • Revenues have grown consistently though with higher base the rate of growth is slowing down
  • Margins are stable and return on capital is good
  • Cash flow from operations have got hit in the current year but that maybe because of COVID2019 impact. I will be watching this very closely.
  • Debt levels are comfortable
  • Valuations are neither too low nor too high. From current levels, upside potential is more than significant downside risk. (Note: March 20 valuations are calculated at Rs 2,282/ share. Accordingly, please adjust the same as per current market price)

Other Important Observations​

– NA

Long Term Chart - a key parameter to understand the true nature of any Company

  • Company seems to be a decent performer and currently retesting it’s previous breakout levels.

Interactive Chart & Current Technicals

List of All Analyzed Companies


inves4 Model Portfolio

An actively managed portfolio - cross between fundamental and technical analysis
- select companies - controlled risk - regular profit booking
Click for details

Relevant News/ Insights​

Sanofi and GSK COVID-19 vaccine candidate demonstrates strong immune responses across all adult age groups in Phase 2 trial

Sanofi and GSK COVID-19 vaccine candidate demonstrates strong immune responses across all adultage groups in Phase 2 trial Adjuvanted recombinant…

Over 300 pharma, healthcare companies eligible for new Covid loans

As many as 354 Crisil-rated companies, predominantly pharmaceutical firms and hospitals, with an aggregate bank exposure of Rs 40,000 crore…

Vaccitech, startup behind Oxford Covid vaccine tech, falls 20% in Nasdaq debut

American depositary shares of Vaccitech fell nearly 20% in their Nasdaq debut on Friday, giving the co-inventor of the Covid-19…

Stocks: When to sell? - Part 1

The most difficult and confusing topic in stock investing !

COVID2019 and stock investing – Part 4 – is it a blessing in disguise for the Indian economy !

At first read, the presented arguments may sound counter intuitive. However, think carefully and you might agree.

Is it time to buy the Indian midcaps – Update December 31, 2019

4th note in the series... the last one for calendar year 2019 !

Disclaimer: The information presented above is no advice/ recommendation. Please do your own independent research before taking any investment related decision.

Comments/ Discussion

Notify of
Newest Most Voted
Inline Feedbacks
View all comments
11 months ago

Good and simple

Arvind Malhotra
Arvind Malhotra
11 months ago

Easy to understand .

Subramaniam Kartik
Subramaniam Kartik
11 months ago

Congrats to Inves4 for completing a year and wishing a long and successful journey ahead.
Really liked the lucid company review (Alkem) that you have posted.
The Summary, SWOT, analysis of Long term charts etc were quite useful in getting a comprehensive view of the Co. 

Would love your thoughts, please comment.x