InCred Equities - Alkem Laboratories Ltd

	Mar-24A	Mar-25A	Mar-26F	Mar-27F
Revenue (Rsm)	126,676	129,645	141,635	156,611
Operating EBITDA (Rsm)	22,455	25,122	27,580	32,731
Net Profit (Rsm)	17,958	21,655	23,161	19,853
Core EPS (Rs)	159.3	181.1	193.7	166.0
Core EPS Growth	79.1%	13.7%	7.0%	(14.3%)
FD Core P/E (x)	30.53	26.85	25.10	29.28
DPS (Rs)	35.0	35.0	40.0	40.0
Dividend Yield	0.72%	0.72%	0.82%	0.82%
EV/EBITDA (x)	25.69	22.39	19.98	16.63
P/FCFE (x)	15.67	18.41	18.61	23.81
Net Gearing	(4.9%)	(11.3%)	(17.8%)	(20.6%)
P/BV (x)	5.64	4.85	4.20	3.79
ROE	19.7%	19.4%	17.9%	13.6%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-24A	Mar-25A	Mar-26F	Mar-27F
Total Net Revenues	126,676	129,645	141,635	156,611
Gross Profit	77,300	82,003	89,938	100,231
Operating EBITDA	22,455	25,122	27,580	32,731
Depreciation And Amortisation	(2,993)	(3,572)	(3,900)	(4,350)
Operating EBIT	19,462	21,550	23,680	28,381
Financial Income/(Expense)	(1,124)	(1,217)	(1,100)	(1,300)
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	3,108	4,937	4,700	4,000
Profit Before Tax (pre-EI)	21,446	25,270	27,280	31,081
Exceptional Items	(1,215)
Pre-tax Profit	20,231	25,270	27,280	31,081
Taxation	(2,117)	(3,110)	(3,819)	(10,878)
Exceptional Income - post-tax
Profit After Tax	18,115	22,160	23,461	20,203
Minority Interests	(157)	(505)	(300)	(350)
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	17,958	21,655	23,161	19,853
Recurring Net Profit	19,045	21,655	23,161	19,853
Fully Diluted Recurring Net Profit	19,045	21,655	23,161	19,853

(Rs mn)	Mar-24A	Mar-25A	Mar-26F	Mar-27F
EBITDA	22,455	25,122	27,580	32,731
Cash Flow from Invt. & Assoc.
Change In Working Capital	(517)	(1,102)	(4,345)	(6,292)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense
Other Operating Cashflow	(2,457)	(4,891)	(4,119)	(11,228)
Net Interest (Paid)/Received	(1,124)	(1,217)	(1,100)	(1,300)
Tax Paid	(3,227)	(8,612)	(7,719)	(13,928)
Cashflow From Operations	19,481	19,128	19,116	15,211
Capex	(1,868)	(6,348)	(7,000)	(6,000)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments		(330)
Other Investing Cashflow
Cash Flow From Investing	17,613	12,451	12,116	9,211
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(5,405)	(5,046)	(4,185)	(4,783)
Preferred Dividends
Other Financing Cashflow	(24,242)	(125)	4,437	3,906
Cash Flow From Financing	(29,647)	(5,171)	252	(877)
Total Cash Generated	(12,035)	7,279	12,368	8,334
Free Cashflow To Equity	37,093	31,579	31,232	24,422
Free Cashflow To Firm	38,217	32,796	32,332	25,722

(Rs mn)	Mar-24A	Mar-25A	Mar-26F	Mar-27F
Total Cash And Equivalents	17,374	24,653	37,022	45,356
Total Debtors	22,528	24,663	26,911	29,756
Inventories	26,612	29,224	33,992	37,587
Total Other Current Assets	37,602	29,572	16,996	18,793
Total Current Assets	104,116	108,112	114,921	131,492
Fixed Assets	25,570	28,627	31,727	33,377
Total Investments	3,348	9,432	9,432	9,432
Intangible Assets	4,743	5,377	5,377	5,377
Total Other Non-Current Assets	17,972	25,363	25,363	25,363
Total Non-current Assets	51,633	68,799	71,899	73,549
Short-term Debt	11,740	7,519	7,519	7,519
Current Portion of Long-Term Debt
Total Creditors	17,481	18,394	12,528	13,624
Other Current Liabilities	10,725	13,738	9,699	10,548
Total Current Liabilities	39,946	39,650	29,746	31,690
Total Long-term Debt	400	3,109	3,946	5,152
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	8,260	9,816	9,816	9,816
Total Non-current Liabilities	8,660	12,925	13,762	14,968
Total Provisions
Total Liabilities	48,605	52,575	43,508	46,658
Shareholders Equity	103,121	119,849	138,525	153,245
Minority Interests	4,023	4,488	4,788	5,138
Total Equity	107,144	124,336	143,313	158,383

	Mar-24A	Mar-25A	Mar-26F	Mar-27F
Revenue Growth	9.2%	2.3%	9.2%	10.6%
Operating EBITDA Growth	39.5%	11.9%	9.8%	18.7%
Operating EBITDA Margin	17.7%	19.4%	19.5%	20.9%
Net Cash Per Share (Rs)	43.78	117.30	213.75	273.37
BVPS (Rs)	862.46	1,002.37	1,158.58	1,281.69
Gross Interest Cover	17.31	17.71	21.53	21.83
Effective Tax Rate	10.5%	12.3%	14.0%	35.0%
Net Dividend Payout Ratio
Accounts Receivables Days	63.17	66.43	66.45	66.03
Inventory Days	194.74	213.89	223.17	231.70
Accounts Payables Days	107.67	137.42	109.16	84.65
ROIC (%)	13.6%	14.6%	15.0%	16.8%
ROCE (%)	17.2%	17.0%	16.3%	17.4%
Return On Average Assets	13.8%	13.9%	13.4%	10.8%

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

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Source: Bloomberg