When we talk about pharma related stocks, there is another name and rewarding stock namely Alkem Lab. With promoters holding around 67% of total shares, Alkem Lab has the market cap of more than 16000 crore with respectable price to earning when compared with the industry with book value of more than Rs.250. 200% dividend against the FV of Rs.2/-, company has clocked reserves of Rs.3076 crore on annual basis as on 31 Mar 2015 against 2703 crore for Mar 2014. Sales for Dec 2015 being of muted nature when compared with Sept 2015, management has kept expenses on account of raw material under check.
Reasonable equity of around 23 crore, management seem to be not only retaining the reserves to meet its future requirements, perhaps, for expansion but also rewarding its share holders. Almost debt free company with debt equity ratio of just 0.35% it is a perfect bet for those who but this stock setting some time frame.
Discerning investors though should exercise due diligence at their own level too to plug any loop hole/s.