Fact based stock research
Alkem Laboratories (BSE:539523)

INE540L01014

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

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Alkem Laboratories stock research in summary

alkemlabs.com

ANALYSIS: With an Obermatt Combined Rank of 32 (worse than 68% compared with investment alternatives), Alkem Laboratories (Pharmaceuticals, India) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Alkem Laboratories are a good value (attractively priced) with a consolidated Value Rank of 59 (better than 59% of alternatives) but show below-average growth (Growth Rank of 33), and are riskily financed (Safety Rank of 46), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 32, is a hold recommendation based on Alkem Laboratories's financial characteristics. As the company Alkem Laboratories's key financial metrics exhibit good value (Obermatt Value Rank of 59) but low growth (Obermatt Growth Rank of 33) and risky financing practices (Obermatt Safety Rank of 46), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 59% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	59
Growth Rank	33
Safety Rank	46
Combined Rank	32

Country	India
Industry	Pharmaceuticals
Index
Size class	Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Alkem Laboratories

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	53	71	51	59
GROWTH
GROWTH	76	37	97	33
SAFETY
SAFETY	76	57	42	46
SENTIMENT
SENTIMENT	n/a	26	80	^new
360° VIEW
360° VIEW	n/a	47	88	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Alkem Laboratories is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	53	71	51	59
GROWTH
GROWTH	76	37	97	33
SAFETY
SAFETY	76	57	42	46
COMBINED
COMBINED	84	61	85	32

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Alkem Laboratories the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 59 (better than 59% compared with alternatives), Alkem Laboratories shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Alkem Laboratories. Price-to-Sales (P/S) is 51, which means that the stock price compared with what market professionals expect for future sales is lower than for 51% of comparable companies, indicating a good value concerning Alkem Laboratories's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 55% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 57 (dividends are expected to be higher than 57% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 52% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Alkem Laboratories to 48. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 59, is a buy recommendation based on Alkem Laboratories's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	41	59	50	51
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	67	64	38	55
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	19	54	44	48
DIVIDEND YIELD
DIVIDEND YIELD	63	62	47	57
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	53	71	51	59

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Alkem Laboratories; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 33 (better than 33% compared with alternatives), Alkem Laboratories shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for Alkem Laboratories. Sales Growth has a rank of 46, which means that currently professionals expect the company to grow less than 54% of its competitors. The same is valid for Profit Growth, with a rank of 49, and Capital Growth with 16. In addition, Stock Returns have a below market rank of 45, which means that the stock returns have recently been below 55% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 33, is a hold recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's outlook, especially Sentiment performance, because it may be a turnaround situation that could entail above-average stock returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	66	39	44	46
PROFIT GROWTH
PROFIT GROWTH	n/a	34	86	49
CAPITAL GROWTH
CAPITAL GROWTH	n/a	73	79	16
STOCK RETURNS
STOCK RETURNS	79	47	91	45
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	76	37	97	33

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Alkem Laboratories.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 46 (better than 46% compared with alternatives), the company Alkem Laboratories has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Alkem Laboratories is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Alkem Laboratories and the other two below average. Refinancing is at 62, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 62% of its competitors. But Leverage is high with a rank of 44, meaning the company has an above-average debt-to-equity ratio. It has more debt than 56% of its competitors. Liquidity is also on the riskier side with a rank of 47, meaning the company generates less profit to service its debt than 53% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 46 (worse than 54% compared with alternatives), Alkem Laboratories has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Alkem Laboratories are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Alkem Laboratories and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	42	44	48	44
REFINANCING
REFINANCING	52	64	62	62
LIQUIDITY
LIQUIDITY	100	57	37	47
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	76	57	42	46

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Alkem Laboratories and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	62	25	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	13	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	20	83	^new
MARKET PULSE
MARKET PULSE	n/a	67	83	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	26	80	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Alkem Laboratories.
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