Alkem Laboratories Stock Price Analysis and Quick Research Report. Is Alkem Laboratories an attractive stock to invest in?

Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.

Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements. 

Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse Alkem Laboratories. 

• PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Alkem Laboratories has a PE ratio of 29.3161396972172 which is high and comparatively overvalued.

• Return on Assets (ROA): Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Alkem Laboratories has ROA of 15.5268% which is a good sign for future performance. (Higher values are always desirable.)

• Current ratio: The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Alkem Laboratories has a Current ratio of 2.8914.

• Return on equity: ROE measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Alkem Laboratories has a ROE of 18.2696%. (Higher is better)

• Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. Alkem Laboratories has a Debt to Equity ratio of 0.0301 which means that the company has low proportion of debt in its capital.

• Sales growth: Alkem Laboratories has reported revenue growth of 10.6681% which is poor in relation to its growth and performance. 

• Operating Margin: This will tell you about the operational efficiency of the company. The operating margin of Alkem Laboratories for the current financial year is 24.4649081402948%.

• Dividend Yield: It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Alkem Laboratories is Rs 45 and the yield is 0.8271%.

• Earnings Per Share: It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Alkem Laboratories is Rs 185.8362. The higher the EPS, the better it is for investors. 

One can find all the Financial Ratios of Alkem Laboratories in Ticker for free. Also, one can get the intrinsic value of Alkem Laboratories by using Valuation Calculators, which are available with a Finology ONE subscription. 

Alkem Laboratories FAQs

Q1. What is Alkem Laboratories share price today?
Ans: The current share price of Alkem Laboratories is Rs 5448.

Q2. What is the market capitalisation of Alkem Laboratories?
Ans: Alkem Laboratories has a market capitalisation of Rs 65139.012 Cr., calculated based on its latest share price.

Q3. What are the P/E and P/B ratios of Alkem Laboratories?
Ans: The PE ratio of Alkem Laboratories is 29.3161396972172 and the P/B ratio of Alkem Laboratories is 5.03233515499925, showing how the stock is valued against its earnings and book value.

Q4. What is the 52-week high and low of Alkem Laboratories share?
Ans: The 52-week high share price of Alkem Laboratories is Rs 6439.9, and the 52-week low share price of Alkem Laboratories is Rs 4491.65.

Q5. Does Alkem Laboratories pay dividends?
Ans: Currently, Alkem Laboratories pays dividends. Dividend yield of Alkem Laboratories is around 0.8271%.

Q6. What are the face value and book value of Alkem Laboratories shares?
Ans: The face value of Alkem Laboratories shares is Rs 2, while the book value per share of Alkem Laboratories is around Rs 1082.5988. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.

Q7. What is the debt of Alkem Laboratories?
Ans: Alkem Laboratories has a total debt of Rs 371.24 Cr., which affects investor sentiment and financial stability. 

Q8. What are the ROE and ROCE of Alkem Laboratories?
Ans: The ROE of Alkem Laboratories is 18.2696% and ROCE of Alkem Laboratories is 19.6625%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.

Q9. Is Alkem Laboratories a good buy for the long term?
Ans: The Alkem Laboratories long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.

Q10. Is Alkem Laboratories undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the Alkem Laboratories appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.

Q11. How to check Alkem Laboratories’s financials?
Ans: You can review Alkem Laboratories’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.