InCred Equities - Alkem Laboratories Ltd

	Mar-23A	Mar-24A	Mar-25F	Mar-26F
Revenue (Rsm)	115,993	126,676	130,462	143,762
Operating EBITDA (Rsm)	16,095	22,455	25,626	29,762
Net Profit (Rsm)	9,842	17,958	22,365	25,731
Core EPS (Rs)	89.0	159.3	187.1	215.2
Core EPS Growth	(35.4%)	79.1%	17.4%	15.1%
FD Core P/E (x)	54.94	30.68	26.13	22.71
DPS (Rs)	54.0	35.0	35.0	40.0
Dividend Yield	1.10%	0.72%	0.72%	0.82%
EV/EBITDA (x)	35.35	25.82	21.39	18.18
P/FCFE (x)	18.64	15.75	8.39	28.92
Net Gearing	(17.3%)	(4.9%)	(29.8%)	(30.2%)
P/BV (x)	6.46	5.67	4.84	4.10
ROE	12.0%	19.7%	20.0%	19.5%
% 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	130,462	143,762
Gross Profit	66,924	77,300	83,495	92,726
Operating EBITDA	16,095	22,455	25,626	29,762
Depreciation And Amortisation	(3,104)	(2,993)	(3,200)	(3,500)
Operating EBIT	12,990	19,462	22,426	26,262
Financial Income/(Expense)	(1,074)	(1,124)	(1,200)	(1,100)
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	2,161	3,108	4,700	4,700
Profit Before Tax (pre-EI)	14,078	21,446	25,926	29,862
Exceptional Items	(1,030)	(1,215)
Pre-tax Profit	13,048	20,231	25,926	29,862
Taxation	(2,980)	(2,117)	(3,111)	(4,181)
Exceptional Income - post-tax
Profit After Tax	10,068	18,115	22,815	25,681
Minority Interests	(226)	(157)	(450)	50
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	9,842	17,958	22,365	25,731
Recurring Net Profit	10,636	19,045	22,365	25,731
Fully Diluted Recurring Net Profit	10,636	19,045	22,365	25,731

(Rs mn)	Mar-23A	Mar-24A	Mar-25F	Mar-26F
EBITDA	16,095	22,455	25,626	29,762
Cash Flow from Invt. & Assoc.
Change In Working Capital	24	(517)	14,746	(13,029)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense
Other Operating Cashflow	706	(2,457)	(3,561)	(4,131)
Net Interest (Paid)/Received	(1,074)	(1,124)	(1,200)	(1,100)
Tax Paid	649	(3,227)	(7,061)	(7,731)
Cashflow From Operations	16,825	19,481	36,811	12,602
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	32,811	7,602
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)	3,100	3,610
Cash Flow From Financing	(12,501)	(29,647)	(1,085)	(575)
Total Cash Generated	2,027	(12,035)	31,726	7,027
Free Cashflow To Equity	31,353	37,093	69,621	20,204
Free Cashflow To Firm	32,427	38,217	70,821	21,304

(Rs mn)	Mar-23A	Mar-24A	Mar-25F	Mar-26F
Total Cash And Equivalents	29,409	17,374	49,100	56,127
Total Debtors	21,322	22,528	24,788	27,315
Inventories	26,075	26,612	30,006	34,503
Total Other Current Assets	10,491	37,602	11,742	17,251
Total Current Assets	87,297	104,116	115,635	135,196
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	11,559	12,541
Other Current Liabilities	12,350	10,725	11,186	9,709
Total Current Liabilities	37,072	39,946	34,485	33,989
Total Long-term Debt		400		10
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	8,269
Total Provisions
Total Liabilities	43,217	48,605	42,744	42,259
Shareholders Equity	90,453	103,121	120,851	142,447
Minority Interests	3,897	4,023	4,473	4,423
Total Equity	94,350	107,144	125,324	146,871

	Mar-23A	Mar-24A	Mar-25F	Mar-26F
Revenue Growth	9.1%	9.2%	3.0%	10.2%
Operating EBITDA Growth	(21.0%)	39.5%	14.1%	16.1%
Operating EBITDA Margin	13.9%	17.7%	19.6%	20.7%
Net Cash Per Share (Rs)	136.64	43.78	312.47	371.16
BVPS (Rs)	756.52	862.46	1,010.76	1,191.38
Gross Interest Cover	12.10	17.31	18.69	23.87
Effective Tax Rate	22.8%	10.5%	12.0%	14.0%
Net Dividend Payout Ratio
Accounts Receivables Days	63.20	63.17	66.19	66.14
Inventory Days	208.77	194.74	220.00	230.68
Accounts Payables Days	86.97	107.67	112.84	86.18
ROIC (%)	12.0%	13.6%	18.1%	18.3%
ROCE (%)	11.7%	17.2%	17.5%	17.8%
Return On Average Assets	8.6%	13.8%	14.6%	14.8%

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

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Market Data

Source: Bloomberg