InCred Equities - Alkem Laboratories Ltd

	Mar-23A	Mar-24A	Mar-25F	Mar-26F
Revenue (Rsm)	115,993	126,676	135,433	148,263
Operating EBITDA (Rsm)	16,095	22,455	26,029	29,962
Net Profit (Rsm)	9,842	17,958	22,616	25,731
Core EPS (Rs)	89.0	159.3	189.2	215.2
Core EPS Growth	(35.4%)	79.1%	18.7%	13.8%
FD Core P/E (x)	62.16	34.72	29.23	25.70
DPS (Rs)	54.0	35.0	35.0	40.0
Dividend Yield	0.98%	0.63%	0.63%	0.72%
EV/EBITDA (x)	40.12	29.24	24.04	20.65
P/FCFE (x)	21.09	17.82	9.64	32.28
Net Gearing	(17.3%)	(4.9%)	(28.9%)	(29.4%)
P/BV (x)	7.31	6.41	5.44	4.62
ROE	12.0%	19.7%	20.1%	19.4%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-23A	Mar-24A	Mar-25F	Mar-26F
Total Net Revenues	115,993	126,676	135,433	148,263
Gross Profit	66,924	77,300	86,000	94,888
Operating EBITDA	16,095	22,455	26,029	29,962
Depreciation And Amortisation	(3,104)	(2,993)	(3,200)	(3,500)
Operating EBIT	12,990	19,462	22,829	26,462
Financial Income/(Expense)	(1,074)	(1,124)	(1,100)	(1,100)
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	2,161	3,108	4,000	4,500
Profit Before Tax (pre-EI)	14,078	21,446	25,729	29,862
Exceptional Items	(1,030)	(1,215)
Pre-tax Profit	13,048	20,231	25,729	29,862
Taxation	(2,980)	(2,117)	(3,087)	(4,181)
Exceptional Income - post-tax
Profit After Tax	10,068	18,115	22,641	25,681
Minority Interests	(226)	(157)	(25)	50
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	9,842	17,958	22,616	25,731
Recurring Net Profit	10,636	19,045	22,616	25,731
Fully Diluted Recurring Net Profit	10,636	19,045	22,616	25,731

(Rs mn)	Mar-23A	Mar-24A	Mar-25F	Mar-26F
EBITDA	16,095	22,455	26,029	29,962
Cash Flow from Invt. & Assoc.
Change In Working Capital	24	(517)	13,384	(13,089)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense
Other Operating Cashflow	706	(2,457)	(3,112)	(4,131)
Net Interest (Paid)/Received	(1,074)	(1,124)	(1,100)	(1,100)
Tax Paid	649	(3,227)	(6,012)	(7,531)
Cashflow From Operations	16,825	19,481	36,300	12,742
Capex	(2,297)	(1,868)	(4,000)	(5,000)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow
Cash Flow From Investing	14,528	17,613	32,300	7,742
Debt Raised/(repaid)
Proceeds From Issue Of Shares	1,615
Shares Repurchased
Dividends Paid	(5,295)	(5,405)	(4,185)	(4,185)
Preferred Dividends
Other Financing Cashflow	(8,820)	(24,242)	2,500	3,430
Cash Flow From Financing	(12,501)	(29,647)	(1,685)	(755)
Total Cash Generated	2,027	(12,035)	30,615	6,987
Free Cashflow To Equity	31,353	37,093	68,600	20,484
Free Cashflow To Firm	32,427	38,217	69,700	21,584

(Rs mn)	Mar-23A	Mar-24A	Mar-25F	Mar-26F
Total Cash And Equivalents	29,409	17,374	47,989	54,977
Total Debtors	21,322	22,528	25,732	28,170
Inventories	26,075	26,612	31,150	35,583
Total Other Current Assets	10,491	37,602	12,189	17,792
Total Current Assets	87,297	104,116	117,060	136,521
Fixed Assets	25,135	25,570	26,370	27,870
Total Investments	3,046	3,348	3,348	3,348
Intangible Assets	4,926	4,743	4,743	4,743
Total Other Non-Current Assets	17,163	17,972	17,972	17,972
Total Non-current Assets	50,270	51,633	52,433	53,933
Short-term Debt	13,072	11,740	11,740	11,740
Current Portion of Long-Term Debt
Total Creditors	11,650	17,481	12,155	13,135
Other Current Liabilities	12,350	10,725	11,763	10,169
Total Current Liabilities	37,072	39,946	35,658	35,043
Total Long-term Debt		400		30
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	6,145	8,260	8,260	8,260
Total Non-current Liabilities	6,145	8,660	8,260	8,290
Total Provisions
Total Liabilities	43,217	48,605	43,918	43,333
Shareholders Equity	90,453	103,121	121,527	143,123
Minority Interests	3,897	4,023	4,048	3,998
Total Equity	94,350	107,144	125,575	147,122

	Mar-23A	Mar-24A	Mar-25F	Mar-26F
Revenue Growth	9.1%	9.2%	6.9%	9.5%
Operating EBITDA Growth	(21.0%)	39.5%	15.9%	15.1%
Operating EBITDA Margin	13.9%	17.7%	19.2%	20.2%
Net Cash Per Share (Rs)	136.64	43.78	303.18	361.37
BVPS (Rs)	756.52	862.46	1,016.41	1,197.03
Gross Interest Cover	12.10	17.31	20.75	24.06
Effective Tax Rate	22.8%	10.5%	12.0%	14.0%
Net Dividend Payout Ratio
Accounts Receivables Days	63.20	63.17	65.03	66.35
Inventory Days	208.77	194.74	213.25	228.17
Accounts Payables Days	86.97	107.67	109.41	86.47
ROIC (%)	12.0%	13.6%	18.1%	18.2%
ROCE (%)	11.7%	17.2%	17.8%	17.9%
Return On Average Assets	8.6%	13.8%	14.4%	14.7%

(91) 22 4161 1552 praful.bohra@incredresearch.com

(91) 22 4161 1566 yogesh.soni@incredresearch.com

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Market Data

Source: Bloomberg