Shares of this large-cap company fell around 1 percent despite Morgan Stanley, ICICI Prudential MF bought stakes in the company via block deal. The shares have delivered more than 40 percent returns to its shareholders in one year.
Price Movement:
With a market capitalization of Rs. 60,454 crores, the shares of Alkem Laboratories Ltd started Wednesday’s trading session on a higher note at Rs. 5,099.90 compared to its previous close of Rs. 5,092.70. During the trading session, the shares hit a low of Rs. 5,002, making a loss of around 1 percent and are currently trading at Rs. 5,059 apiece.
What happened:
According to the NSE block deal, ICICI Prudential mutual fund acquired a 0.14 percent stake in Alkem Laboratories and ICICI Prudential Life Insurance Company bought 20,200 equity shares or 0.02 percent at an average price of Rs. 4,956 apiece.
Furthermore, one of the prominent Foreign Institutional Investors Morgan Stanley Asia Singapore acquired 0.08 percent or 98,495 equity shares in Alkem Laboratories at the same above-mentioned price.
This comes after one of the Promoter Seema Singh on Tuesday sold shares of the company worth Rs. 177 crores through an open market transaction. Singh divested a total of 3,58,695 shares at a going rate of Rs 4,956 per share, signalling a 0.3 per cent stake in the pharma company.
Financials:
Looking at the company’s financial statements, the revenue decreased by 12 percent from Rs. 3,324 crores during the December quarter to Rs. 2,936 crores in the March quarter. On the other hand, the net profits declined by 50 percent from Rs. 604 crores to Rs. 304 crores during the same period.
Important Ratios:
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 10.88 percent during FY 22-23 to 17.41 percent in FY 23-24, and, the return on capital employed (RoCE) zoomed from 15.07 percent to 19.49 percent during the same timeframe.
Recent Developments:
Earlier, the US Food and Drug Administration (USFDA) had issued an establishment inspection report (EIR) for its manufacturing facility in Baddi, Himachal Pradesh. The US regulator categorised the inspection outcome as voluntary action indicated (VAI). Subsequently, the inspection was formally closed.
Shareholding Pattern:
According to the latest shareholding pattern, Promoters control 56.74 percent of the equity, while FIIs account for 9.11 percent. DIIs hold a stake of 15.63 percent, with the remaining 18.51 percent owned by Retail Investors.
Company Profile:
Headquartered in Mumbai, Alkem Laboratories is engaged in the pharmaceutical business with global operations. The company is engaged in the development, manufacture and sale of pharmaceutical and nutraceutical products.
Written By Vaibhav Patil
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