Alkem Laboratories Limited is a well-known Indian pharmaceutical company that develops, manufactures and sells medicinal drugs and nutraceutical products.Market Capitalisation
The market capitalisation of Alkem Laboratories, as of July 30 2018, was a little over Rs.25,281 crore.
Company's Wealth and Recent Performance
- In the first quarter of the financial year 2017-18 (April to June), Alkem reported an operating income of Rs.12,952 million. There was a decline in year-on-year net profit by 12.50%.
- In the second quarter of the financial year 2017-2018 (July to September), the company saw a better performance when compared to the previous quarter. The operating income increased to Rs.18,649 million and the growth rate was 13.80%.
- Sales significantly rose in the third quarter of the year, reaching a growth rate of 22% when compared to the previous quarter's 14.70%.
- The total income gained from operations in the last quarter was Rs.15,132 million and the sales numbers stood at Rs.9,602 million.
- By the end of the financial year, ending March 31, 2018, the total revenue gained was Rs.64,312 million, with a growth rate of 9.9%.
Alkem Laboratories Stock Trends in 2018
- On January 1 2018, the price per stock stood at Rs.2,201. There were no significant fluctuations in price during the month, and the price trend was ‘steady'.
- The price of the scrip on the first day of February was Rs.2,200. On February 6, the price slumped to Rs.2,022, a fall by Rs.178. This decline may be due to the investor meets.
- The price of an Alkem share on February 28 was Rs.2,228.70. In March, the markets opened with a rate of Rs.2,230.95.
- On April 3, the price slumped below Rs.2,000, reaching Rs.1,919. On the 12th, the price went down to Rs.1,766 due to unfavourable market conditions.
- In May, the price remained steady with very minute changes. On the 3rd, the price per share was Rs.2,022, and on the 22nd, the cost per share went down to Rs.1950.50.
- On June 1st, the price of an Alkem stock opened at Rs.1,917. The stock prices did not see any major fluctuations in this month.
- On July 2, the prices dwindled to Rs.1,897 due to a rise in the volume of shares. On the 25th of the month, the price inclined to Rs.2,090, after the firm came out with a press release.
Alkem Laboratories Stock Trends in 2016 and 2017
- On January 2, 2017, the price of an Alkem share was Rs.1,626. The rate remained below Rs.2,000 all through the month.
- The cost reached above Rs.2,000 by the end of February 2017. On the 28th, the cost per share was at Rs.2,121.
- By the second week of March in 2017, the price had again slipped below Rs.2,000, reaching Rs.1,945.95 on the 15th. The price could have gone down after an inspection report was released.
- The price of the stock was sturdy, staying above Rs.2,000 for most of April in 2017. However, on the 27th, the price slumped to Rs.1,960 per share.
- In May 2017, the markets opened on a high note but went on to decline over the course of the month.
- In July 2017, there was a significant fall in price on the 18th, when the cost per share stood at Rs.1,758.20. In the next few days, the prices gradually increased, reaching Rs.1,812.30 on August 7.
- However, the stock could not sustain, and prices took a dip, reaching Rs.1,680.05 on August 11, after the net profit of the company went down.
- During the last four months of 2017, the stock recovered gradually and closed at the price of Rs.2,215 on December 29, 2017.
- In 2016, the price of the share on January 1 was Rs.1,495, and the price went down to Rs.1,320 on the 20th after the announcement on investor complaints was made the previous day.
- On May 13, 2016, the price of a share fell to Rs.1,182. This could have been because of the announcement of the fourth quarter results.
- Prices gradually picked up in May 2016 and finally on September 29, the cost of each Alkem share was Rs.1,808.
- Unfortunately, the last few months of 2016 did not work in favour of Alkem as prices crumbled. On December 26 2016, the cost per share stood at Rs.1,594.95.
Should you invest in Alkem Laboratories?
- Alkem has been ranked as ‘one of the top 10 pharmaceutical companies in India’. The firm has also been recognised as ‘the No.1 Anti-infective company in India.
- The company has a strong competitive advantage in the industry and a highly diverse and specialised product range.
- The stock is priced reasonably and most analysts are taking a bullish stand on this particular stock.
- Alkem Laboratories Limited is the ‘Fifth Largest Pharmaceutical Company in India’. However, the firm is also doing very well on the international front with sales numbers growing.
- Keeping all the above parameters in mind, investors should make an informed decision after doing some personal research.
Alkem Laboratories Limited has been manufacturing generic drugs, pharmaceutical ingredients, branded generics, and nutraceuticals. The company markets products in India and also in more than 50 countries across the globe. With a strong sales and distribution network, Alkem is recognised as an industry leader in segments such as pain management, nutrients, minerals and vitamins and gastrointestinal verticals. The company has had as many as 14 manufacturing units across India and two units in the USA. There are strict quality control practices that are being followed at all of their manufacturing units.
History of the Company
Incorporated as Alkem Laboratories Limited in 1973, the company set up its first plant five years later in Mumbai. In 1992, a manufacturing unit was established in Gujarat. Soon after, the firm invested in setting up a research and development centre at Taloja, Mumbai in 2003. Three years later, their anti-infective drug Taxim became the first such drug to hit the Rs.1,000 million sales mark in the country. The next year, the firm filed its first Abbreviated New Drug Application (ANDA) in the United States of America (USA) for Amlodipine. In 2009, Amlodipine got the ANDA nod. From 2009 to 2015, Alkem acquired various companies such as Ascend Laboratories, Pharmacor PTY Ltd., Enzene, Clindac-A, and other API manufacturing units. In 2015, the company successfully made its debut in the stock market by making its Initial Public Offering (PIO).
Management of the Company
Mr.Samprada Singh - Chairman Emeritus
Mr.Samprada Singh is a co-founder of Alkem and has more than 43 years of experience in this segment. Singh has been a recipient of esteemed awards such as the ‘Lifetime Achievement Award', ‘Asian Grid Leadership Lifetime Achievement Award 2006', and the ‘Lifetime Contribution Award'. In 2016, he was given the ‘EY Entrepreneur of the Year Award in Life Sciences'
Mr. Basudeo N. Singh – Executive Chairman
With around 40 years of experience in the pharma segment in India, Singh is also one among the co-founders. From 2007 to 2009, he served as the resident of the Indian Drug Manufacturer's Association. He has also won prestigious laurels for his contribution to the field. In 2014, he was the recipient of the ‘Business Leader of the Year' award.
Mr. Sandeep Singh – Managing Director
Mr.Sandeep was appointed as a board member in 2013 and is presently serving as the Managing Director of the company. He comes with close to a decade of experience in the pharma sector. Mr.Sandeep takes care of domestic and international operations. He was given the ‘Emerging Pharma Leaser of 2016' award, which was bestowed by the Ministry of Health and Family Affairs, Government of India.
Mr. Dhananjay Kumar Singh – Joint Managing Director
Mr.Dhananjay Kumar Singh, who became a board member in 1988, is currently serving as the Joint Managing Director of Alkem. He has more than 30 years of experience in this sector and is presently overseeing the Pharma, Forgen, Arise and Bergen segments in the domestic market. He is actively involved in human resource management, legal aspects, secretarial and compliance, commercials, purchases, distribution, and logistics.
Alkem Laboratories Stock Listings in NSE, BSE, and Indices
Alkem Laboratories equity shares are available for trading on the country's two major stock markets - the National Stock Exchange of India Limited and the Bombay Stock Exchange. The respective codes for the same are as follows:
NSE Code: ALKEMQ
BSE Code: 539523
Sector: PharmaceuticalsComing to the stock market indices, Alkem comprises the following indices:
Nifty Full Midcap 100
Nifty India Consumption
Nifty LargeMidcap 250
Nifty Midcap 100nifty Midcap 150
Nifty MidSmallcap 400
S&P BSE 150 MidCapn Index
S&P BSE 200
S&P BSE 259 largeMidCap Index
S&P BSE 400 MidSMallCap Index
S&P BSE 500
S&P BSE AllCap
S&P BSE Healthcare
S&P BSE LargeMidCap
S&P BSE Mid Cap
S&P BSE MidSmallCap
Alkem Laboratories Limited
Devashish Building, Alkem House,
Senapati Bapat Road, Lower Parel,
Mumbai - 400 013.
Tel: +91 22 3982 99 99
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