Intrinsic Valuation of: ALKEM
Free Cash Flow Average and Growth over past 5Y Key Statistics
Year FCF FCF (FCF/Revenue)
2020 - - EPS (FY) 198 Market Cap ₹656B
2021 - - (-) P/E Ratio 28 Total Asset ₹177B
2022 ₹8B - (-) Net Income ₹22B Total Debt ₹3B
2023 ₹14B 87.7% (72.5%) EBITDA ₹30B Total Liab ₹53B
2024 ₹17B 16.5% (7.1%) Opr Margin 17.06 Debt/Equity 0.03
2025 ₹12B -26.7% (-28.8%) PreTax Margin 16.38 BV/Share 957
5Y Average FCF ₹13B 14.4% (16.9%)
Overall Market Assumptions:
Assumptions: P/E for No-Growth Company: 7.0
Perpetual Growth Rate (g): 2.48% Historical US Bond Yield: 4.40%
Discount Rate (WACC): 7.02% Current US Bond Yield: 3.48%
Forcasting Future Free Cash Flow for next 6Y Modified Benjamin Graham's Intrinsic Value
Year FCF Projection (14.4%)
2026 ₹14B MBG Intrinsic Value ₹1,770
2027 ₹16B
2028 ₹18B
2029 ₹19B
2030 ₹20B
2031 ₹20B
Terminal Value ₹458B Net Worth/Share ₹1,040
DCF Valuation DCF Valuation "What If" Scenario Table
Enterprise Value ₹388B Growth Rate
(+) Cash & Cash Equivalents ₹3B ₹3,247 1.5% 2.0% 2.5% 3.0% 3.5%
(-) Total Debt ₹3B WACC 6.5% 3,063 3,336 3,677 4,115 4,698
Equity Value ₹388B 7.1% 2,714 2,921 3,172 3,483 3,881
Shares Outstanding 119,565,000 7.8% 2,435 2,596 2,787 3,019 3,304
8.4% 2,207 2,335 2,485 2,662 2,876
DCF Intrinsic Value ₹3,247 9.0% 2,017 2,121 2,240 2,380 2,545
Analyzed by QuantJuice (2025)