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Last Updated: February 21, 2026, 11:50 am
Author: Getaka|Social: XLinkedIn
Stock Ticker - BSE: 539523 | NSE: ALKEM

Alkem Laboratories Ltd: Intrinsic Value & Share Price Analysis

Share Price and Basic Stock Data

Last Updated: February 21, 2026, 11:50 am

Market Cap 64,469 Cr.
Current Price 5,392
Intrinsic Value₹5,053.93
High / Low 5,934/4,492
Stock P/E26.9
Book Value 1,116
Dividend Yield0.83 %
ROCE20.4 %
ROE19.4 %
Face Value 2.00
PEG Ratio3.55

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Alkem Laboratories Ltd

Competitors

Stock Name ⇩Market Cap ⇩Current Price ⇩High / Low ⇩Stock P/E ⇩Book Value ⇩Dividend Yield ⇩ROCE ⇩ROE ⇩Face Value ⇩
Lactose (India) Ltd 122 Cr. 97.0 137/84.325.3 49.60.00 %12.9 %9.69 % 10.0
MPS Pharmaa Ltd 3.21 Cr. 1.68 4.02/1.68 0.330.00 %9.79 %59.0 % 10.0
Gujarat Themis Biosyn Ltd 3,659 Cr. 336 479/20876.6 24.30.20 %27.3 %21.7 % 1.00
Gujarat Terce Laboratories Ltd 29.9 Cr. 40.3 79.8/37.2 10.60.00 %41.4 %14.6 % 10.0
Gujarat Inject (Kerala) Ltd 90.8 Cr. 62.0 62.2/17.0363 6.930.00 %13.5 %11.0 % 10.0
Industry Average20,113.48 Cr1,087.7357.00201.330.37%16.29%15.20%6.10

All Competitor Stocks of Alkem Laboratories Ltd

Quarterly Result

MetricSep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025
Sales 3,0793,0412,9032,9683,4403,3242,9363,0323,4153,3743,1443,3714,001
Expenses 2,6252,4422,5492,5792,6932,6162,5342,4232,6622,6152,7522,6323,080
Operating Profit 454599353389747708402609753759391739921
OPM % 15%20%12%13%22%21%14%20%22%23%12%22%23%
Other Income 5145-34666427612013493146149104
Interest 25272930302527292836283035
Depreciation 777878727470838079851128894
Profit before tax 402539212353648655367619780731396771896
Tax % 14%15%68%18%5%8%17%11%10%12%18%13%13%
Net Profit 34846068288615604304550702641322668779
EPS in Rs 27.6738.035.9423.9851.9049.7624.5545.6057.6052.3425.5855.5663.99

Last Updated: January 2, 2026, 1:34 pm

Below is a detailed analysis of the quarterly data for Alkem Laboratories Ltd based on the most recent figures (Sep 2025) and their trends compared to the previous period:

  • For Sales, as of Sep 2025, the value is 4,001.00 Cr.. The value appears strong and on an upward trend. It has increased from 3,371.00 Cr. (Jun 2025) to 4,001.00 Cr., marking an increase of 630.00 Cr..
  • For Expenses, as of Sep 2025, the value is 3,080.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 2,632.00 Cr. (Jun 2025) to 3,080.00 Cr., marking an increase of 448.00 Cr..
  • For Operating Profit, as of Sep 2025, the value is 921.00 Cr.. The value appears strong and on an upward trend. It has increased from 739.00 Cr. (Jun 2025) to 921.00 Cr., marking an increase of 182.00 Cr..
  • For OPM %, as of Sep 2025, the value is 23.00%. The value appears strong and on an upward trend. It has increased from 22.00% (Jun 2025) to 23.00%, marking an increase of 1.00%.
  • For Other Income, as of Sep 2025, the value is 104.00 Cr.. The value appears to be declining and may need further review. It has decreased from 149.00 Cr. (Jun 2025) to 104.00 Cr., marking a decrease of 45.00 Cr..
  • For Interest, as of Sep 2025, the value is 35.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 30.00 Cr. (Jun 2025) to 35.00 Cr., marking an increase of 5.00 Cr..
  • For Depreciation, as of Sep 2025, the value is 94.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 88.00 Cr. (Jun 2025) to 94.00 Cr., marking an increase of 6.00 Cr..
  • For Profit before tax, as of Sep 2025, the value is 896.00 Cr.. The value appears strong and on an upward trend. It has increased from 771.00 Cr. (Jun 2025) to 896.00 Cr., marking an increase of 125.00 Cr..
  • For Tax %, as of Sep 2025, the value is 13.00%. The value remains steady. There is no change compared to the previous period (Jun 2025) which recorded 13.00%.
  • For Net Profit, as of Sep 2025, the value is 779.00 Cr.. The value appears strong and on an upward trend. It has increased from 668.00 Cr. (Jun 2025) to 779.00 Cr., marking an increase of 111.00 Cr..
  • For EPS in Rs, as of Sep 2025, the value is 63.99. The value appears strong and on an upward trend. It has increased from 55.56 (Jun 2025) to 63.99, marking an increase of 8.43.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: February 18, 2026, 6:16 pm

MetricMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025TTM
Sales 3,1133,6744,9055,6886,4017,3578,3448,86510,63411,59912,66812,96514,253
Expenses 2,7003,2484,0384,6875,3926,2376,8686,9208,5809,97710,41910,45211,374
Operating Profit 4134278661,0011,0091,1201,4761,9452,0541,6222,2492,5122,879
OPM % 13%12%18%18%16%15%18%22%19%14%18%19%20%
Other Income 16217622711011582102230146101186494489
Interest 938171455555655952107112122135
Depreciation 527193101143193253275304310299357389
Profit before tax 4304519289659269551,2601,8421,8441,3052,0232,5272,844
Tax % -1%13%19%6%31%19%9%12%9%23%10%12%
Net Profit 4353927529056387741,1491,6181,6801,0071,8112,2152,422
EPS in Rs 364.1032.7562.0274.6152.7763.6194.26132.57137.6382.31150.19181.11198.32
Dividend Payout % 5%12%20%20%25%25%27%23%25%61%27%25%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-20242024-2025
YoY Net Profit Growth (%)-9.89%91.84%20.35%-29.50%21.32%48.45%40.82%3.83%-40.06%79.84%22.31%
Change in YoY Net Profit Growth (%)0.00%101.72%-71.49%-49.85%50.82%27.13%-7.63%-36.99%-43.89%119.90%-57.53%

Alkem Laboratories Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2014-2015 to 2024-2025.

Growth

Compounded Sales Growth
10 Years:13%
5 Years:9%
3 Years:7%
TTM:4%
Compounded Profit Growth
10 Years:20%
5 Years:14%
3 Years:9%
TTM:6%
Stock Price CAGR
10 Years:%
5 Years:14%
3 Years:20%
1 Year:-15%
Return on Equity
10 Years:19%
5 Years:19%
3 Years:17%
Last Year:19%

Last Updated: September 4, 2025, 10:45 pm

Balance Sheet

Last Updated: December 4, 2025, 12:56 am

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Sep 2025
Equity Capital 12242424242424242424242424
Reserves 2,5672,9753,6684,4444,8405,4156,1377,3538,6149,02110,28811,96113,322
Borrowings 1,1281,3066586599989441,6161,7072,6681,3971,4181,3812,356
Other Liabilities 6049861,1841,4401,8031,8242,1692,4352,7633,3153,8444,3254,586
Total Liabilities 4,3115,2915,5346,5687,6648,2089,94611,51914,06913,75715,57517,69120,287
Fixed Assets 1,1701,3741,4501,7972,2842,5302,9082,7932,9022,6832,8732,8523,319
CWIP 0111172299381493363393339323159548653
Investments 5884815095534443242613333716224841,8462,533
Other Assets 2,5533,3253,4033,9184,5554,8616,4138,00010,45710,12912,06012,44513,783
Total Assets 4,3115,2915,5346,5687,6648,2089,94611,51914,06913,75715,57517,69120,287

Below is a detailed analysis of the balance sheet data for Alkem Laboratories Ltd based on the most recent figures (Sep 2025) and their trends compared to the previous period:

  • For Equity Capital, as of Sep 2025, the value is 24.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2025) which recorded 24.00 Cr..
  • For Reserves, as of Sep 2025, the value is 13,322.00 Cr.. The value appears strong and on an upward trend. It has increased from 11,961.00 Cr. (Mar 2025) to 13,322.00 Cr., marking an increase of 1,361.00 Cr..
  • For Borrowings, as of Sep 2025, the value is 2,356.00 Cr.. The value appears to be increasing, which may not be favorable. Additionally, since Reserves exceed Borrowings, this is considered a positive sign. It has increased from 1,381.00 Cr. (Mar 2025) to 2,356.00 Cr., marking an increase of 975.00 Cr..
  • For Other Liabilities, as of Sep 2025, the value is 4,586.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 4,325.00 Cr. (Mar 2025) to 4,586.00 Cr., marking an increase of 261.00 Cr..
  • For Total Liabilities, as of Sep 2025, the value is 20,287.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 17,691.00 Cr. (Mar 2025) to 20,287.00 Cr., marking an increase of 2,596.00 Cr..
  • For Fixed Assets, as of Sep 2025, the value is 3,319.00 Cr.. The value appears strong and on an upward trend. It has increased from 2,852.00 Cr. (Mar 2025) to 3,319.00 Cr., marking an increase of 467.00 Cr..
  • For CWIP, as of Sep 2025, the value is 653.00 Cr.. The value appears strong and on an upward trend. It has increased from 548.00 Cr. (Mar 2025) to 653.00 Cr., marking an increase of 105.00 Cr..
  • For Investments, as of Sep 2025, the value is 2,533.00 Cr.. The value appears strong and on an upward trend. It has increased from 1,846.00 Cr. (Mar 2025) to 2,533.00 Cr., marking an increase of 687.00 Cr..
  • For Other Assets, as of Sep 2025, the value is 13,783.00 Cr.. The value appears strong and on an upward trend. It has increased from 12,445.00 Cr. (Mar 2025) to 13,783.00 Cr., marking an increase of 1,338.00 Cr..
  • For Total Assets, as of Sep 2025, the value is 20,287.00 Cr.. The value appears strong and on an upward trend. It has increased from 17,691.00 Cr. (Mar 2025) to 20,287.00 Cr., marking an increase of 2,596.00 Cr..

Notably, the Reserves (13,322.00 Cr.) exceed the Borrowings (2,356.00 Cr.), indicating a solid financial buffer.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

Reserves and Borrowings Chart

Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Cash from Operating Activity + 2903257264712667805851,2651,1111,6821,9481,913
Cash from Investing Activity + 353-235205-294-351-318-737-995-1,433120-1,011-1,288
Cash from Financing Activity + -600-52-927-13885-37979-272380-1,761-1,145-811
Net Cash Flow 4439340082-73-25842-207-186

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Free Cash Flow412.00426.00208.00-658.00-997.00-943.000.000.000.000.001.001.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Debtor Days 435242466262726665676569
Inventory Days 163169169198221186198241262194197224
Days Payable 8110110812214711910411210287129141
Cash Conversion Cycle 126121103122135129167196225174132152
Working Capital Days -26-521334405544473166135124
ROCE %14%12%23%21%17%16%18%22%18%14%20%20%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Promoters 57.16%57.16%56.74%56.74%56.74%56.38%55.66%55.66%55.13%53.04%51.20%51.20%
FIIs 4.44%5.63%6.03%8.49%9.11%8.69%9.02%10.14%9.40%9.11%9.47%9.97%
DIIs 16.69%16.34%17.63%15.91%15.63%18.56%19.21%18.01%19.42%21.80%21.93%21.54%
Public 21.69%20.85%19.58%18.86%18.51%16.37%16.12%16.19%16.05%16.05%17.39%17.30%
No. of Shareholders 73,44066,79069,44265,18465,83069,62774,74484,03884,32679,74067,19664,536

Shareholding Pattern Chart

No. of Shareholders

Alkem Laboratories Ltd: Intrinsic Value & Share Price Analysis - Shareholder trend analysis

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid Cap Fund 1,802,978 1.07 992.811,545,8392025-12-14 00:38:4816.63%
SBI Large & Midcap Fund 1,476,712 2.17 813.15N/AN/AN/A
ICICI Prudential Multi Asset Fund 1,450,072 1.02 798.48388,5262025-12-07 23:08:50273.22%
Nippon India Growth Mid Cap Fund 1,163,397 1.52 640.62N/AN/AN/A
ICICI Prudential Large & Mid Cap Fund 1,121,797 2.23 617.721,176,6412025-12-14 02:28:49-4.66%
SBI Contra Fund 1,004,007 1.11 552.86452,4002025-12-07 15:45:16121.93%
DSP Mid Cap Fund 748,010 2.1 411.891,566,4212025-12-07 16:59:56-52.25%
SBI Midcap Fund 685,892 1.62 377.69N/AN/AN/A
DSP Flexi Cap Fund 441,106 1.97 242.9441,1062025-04-22 17:25:430%
DSP Large & Mid Cap Fund 440,106 1.38 242.34N/AN/AN/A

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 25Mar 24Mar 23Mar 22Mar 21
FaceValue 2.002.002.002.002.00
Basic EPS (Rs.) 181.11150.1982.31137.63132.57
Diluted EPS (Rs.) 181.11150.1982.31137.63132.57
Cash EPS (Rs.) 215.24176.56110.18165.98158.29
Book Value[Excl.RevalReserv]/Share (Rs.) 1002.50896.23789.21740.05632.20
Book Value[Incl.RevalReserv]/Share (Rs.) 1002.50896.23789.21740.05632.20
Revenue From Operations / Share (Rs.) 1084.441059.61970.24889.52741.53
PBDIT / Share (Rs.) 251.43213.83152.70185.33181.98
PBIT / Share (Rs.) 221.56188.79126.73159.90159.01
PBT / Share (Rs.) 211.38169.23109.14154.27154.09
Net Profit / Share (Rs.) 185.36151.5284.22140.55135.32
NP After MI And SOA / Share (Rs.) 181.14150.2182.32137.65132.58
PBDIT Margin (%) 23.1820.1815.7320.8324.54
PBIT Margin (%) 20.4317.8113.0617.9721.44
PBT Margin (%) 19.4915.9711.2417.3420.77
Net Profit Margin (%) 17.0914.298.6715.8018.24
NP After MI And SOA Margin (%) 16.7014.178.4815.4717.87
Return on Networth / Equity (%) 18.0617.4110.8819.0521.48
Return on Capital Employeed (%) 19.2919.4915.0720.6324.01
Return On Assets (%) 12.2411.527.1511.6913.75
Long Term Debt / Equity (X) 0.020.000.000.000.00
Total Debt / Equity (X) 0.080.110.140.290.22
Asset Turnover Ratio (%) 0.770.860.830.710.69
Current Ratio (X) 2.762.612.351.761.92
Quick Ratio (X) 2.021.941.651.131.28
Inventory Turnover Ratio (X) 4.641.251.091.331.23
Dividend Payout Ratio (NP) (%) 23.1829.9653.450.0021.12
Dividend Payout Ratio (CP) (%) 19.9025.6840.630.0018.00
Earning Retention Ratio (%) 76.8270.0446.550.0078.88
Cash Earning Retention Ratio (%) 80.1074.3259.370.0082.00
Interest Coverage Ratio (X) 24.7022.7417.0042.3136.92
Interest Coverage Ratio (Post Tax) (X) 19.2118.2011.3433.3728.46
Enterprise Value (Cr.) 58288.8759097.0539701.2743453.4033002.69
EV / Net Operating Revenue (X) 4.504.673.424.093.72
EV / EBITDA (X) 19.3923.1221.7519.6115.17
MarketCap / Net Operating Revenue (X) 4.504.663.504.073.74
Retention Ratios (%) 76.8170.0346.540.0078.87
Price / BV (X) 4.875.734.495.014.49
Price / Net Operating Revenue (X) 4.504.663.504.073.74
EarningsYield 0.030.030.020.030.04

After reviewing the key financial ratios for Alkem Laboratories Ltd, here is a detailed analysis based on the latest available data and recent trends:

  • For FaceValue, as of Mar 25, the value is 2.00. This value is within the healthy range. There is no change compared to the previous period (Mar 24) which recorded 2.00.
  • For Basic EPS (Rs.), as of Mar 25, the value is 181.11. This value is within the healthy range. It has increased from 150.19 (Mar 24) to 181.11, marking an increase of 30.92.
  • For Diluted EPS (Rs.), as of Mar 25, the value is 181.11. This value is within the healthy range. It has increased from 150.19 (Mar 24) to 181.11, marking an increase of 30.92.
  • For Cash EPS (Rs.), as of Mar 25, the value is 215.24. This value is within the healthy range. It has increased from 176.56 (Mar 24) to 215.24, marking an increase of 38.68.
  • For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 25, the value is 1,002.50. It has increased from 896.23 (Mar 24) to 1,002.50, marking an increase of 106.27.
  • For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 25, the value is 1,002.50. It has increased from 896.23 (Mar 24) to 1,002.50, marking an increase of 106.27.
  • For Revenue From Operations / Share (Rs.), as of Mar 25, the value is 1,084.44. It has increased from 1,059.61 (Mar 24) to 1,084.44, marking an increase of 24.83.
  • For PBDIT / Share (Rs.), as of Mar 25, the value is 251.43. This value is within the healthy range. It has increased from 213.83 (Mar 24) to 251.43, marking an increase of 37.60.
  • For PBIT / Share (Rs.), as of Mar 25, the value is 221.56. This value is within the healthy range. It has increased from 188.79 (Mar 24) to 221.56, marking an increase of 32.77.
  • For PBT / Share (Rs.), as of Mar 25, the value is 211.38. This value is within the healthy range. It has increased from 169.23 (Mar 24) to 211.38, marking an increase of 42.15.
  • For Net Profit / Share (Rs.), as of Mar 25, the value is 185.36. This value is within the healthy range. It has increased from 151.52 (Mar 24) to 185.36, marking an increase of 33.84.
  • For NP After MI And SOA / Share (Rs.), as of Mar 25, the value is 181.14. This value is within the healthy range. It has increased from 150.21 (Mar 24) to 181.14, marking an increase of 30.93.
  • For PBDIT Margin (%), as of Mar 25, the value is 23.18. This value is within the healthy range. It has increased from 20.18 (Mar 24) to 23.18, marking an increase of 3.00.
  • For PBIT Margin (%), as of Mar 25, the value is 20.43. This value exceeds the healthy maximum of 20. It has increased from 17.81 (Mar 24) to 20.43, marking an increase of 2.62.
  • For PBT Margin (%), as of Mar 25, the value is 19.49. This value is within the healthy range. It has increased from 15.97 (Mar 24) to 19.49, marking an increase of 3.52.
  • For Net Profit Margin (%), as of Mar 25, the value is 17.09. This value exceeds the healthy maximum of 10. It has increased from 14.29 (Mar 24) to 17.09, marking an increase of 2.80.
  • For NP After MI And SOA Margin (%), as of Mar 25, the value is 16.70. This value is within the healthy range. It has increased from 14.17 (Mar 24) to 16.70, marking an increase of 2.53.
  • For Return on Networth / Equity (%), as of Mar 25, the value is 18.06. This value is within the healthy range. It has increased from 17.41 (Mar 24) to 18.06, marking an increase of 0.65.
  • For Return on Capital Employeed (%), as of Mar 25, the value is 19.29. This value is within the healthy range. It has decreased from 19.49 (Mar 24) to 19.29, marking a decrease of 0.20.
  • For Return On Assets (%), as of Mar 25, the value is 12.24. This value is within the healthy range. It has increased from 11.52 (Mar 24) to 12.24, marking an increase of 0.72.
  • For Long Term Debt / Equity (X), as of Mar 25, the value is 0.02. This value is below the healthy minimum of 0.2. It has increased from 0.00 (Mar 24) to 0.02, marking an increase of 0.02.
  • For Total Debt / Equity (X), as of Mar 25, the value is 0.08. This value is within the healthy range. It has decreased from 0.11 (Mar 24) to 0.08, marking a decrease of 0.03.
  • For Asset Turnover Ratio (%), as of Mar 25, the value is 0.77. It has decreased from 0.86 (Mar 24) to 0.77, marking a decrease of 0.09.
  • For Current Ratio (X), as of Mar 25, the value is 2.76. This value is within the healthy range. It has increased from 2.61 (Mar 24) to 2.76, marking an increase of 0.15.
  • For Quick Ratio (X), as of Mar 25, the value is 2.02. This value exceeds the healthy maximum of 2. It has increased from 1.94 (Mar 24) to 2.02, marking an increase of 0.08.
  • For Inventory Turnover Ratio (X), as of Mar 25, the value is 4.64. This value is within the healthy range. It has increased from 1.25 (Mar 24) to 4.64, marking an increase of 3.39.
  • For Dividend Payout Ratio (NP) (%), as of Mar 25, the value is 23.18. This value is within the healthy range. It has decreased from 29.96 (Mar 24) to 23.18, marking a decrease of 6.78.
  • For Dividend Payout Ratio (CP) (%), as of Mar 25, the value is 19.90. This value is below the healthy minimum of 20. It has decreased from 25.68 (Mar 24) to 19.90, marking a decrease of 5.78.
  • For Earning Retention Ratio (%), as of Mar 25, the value is 76.82. This value exceeds the healthy maximum of 70. It has increased from 70.04 (Mar 24) to 76.82, marking an increase of 6.78.
  • For Cash Earning Retention Ratio (%), as of Mar 25, the value is 80.10. This value exceeds the healthy maximum of 70. It has increased from 74.32 (Mar 24) to 80.10, marking an increase of 5.78.
  • For Interest Coverage Ratio (X), as of Mar 25, the value is 24.70. This value is within the healthy range. It has increased from 22.74 (Mar 24) to 24.70, marking an increase of 1.96.
  • For Interest Coverage Ratio (Post Tax) (X), as of Mar 25, the value is 19.21. This value is within the healthy range. It has increased from 18.20 (Mar 24) to 19.21, marking an increase of 1.01.
  • For Enterprise Value (Cr.), as of Mar 25, the value is 58,288.87. It has decreased from 59,097.05 (Mar 24) to 58,288.87, marking a decrease of 808.18.
  • For EV / Net Operating Revenue (X), as of Mar 25, the value is 4.50. This value exceeds the healthy maximum of 3. It has decreased from 4.67 (Mar 24) to 4.50, marking a decrease of 0.17.
  • For EV / EBITDA (X), as of Mar 25, the value is 19.39. This value exceeds the healthy maximum of 15. It has decreased from 23.12 (Mar 24) to 19.39, marking a decrease of 3.73.
  • For MarketCap / Net Operating Revenue (X), as of Mar 25, the value is 4.50. This value exceeds the healthy maximum of 3. It has decreased from 4.66 (Mar 24) to 4.50, marking a decrease of 0.16.
  • For Retention Ratios (%), as of Mar 25, the value is 76.81. This value exceeds the healthy maximum of 70. It has increased from 70.03 (Mar 24) to 76.81, marking an increase of 6.78.
  • For Price / BV (X), as of Mar 25, the value is 4.87. This value exceeds the healthy maximum of 3. It has decreased from 5.73 (Mar 24) to 4.87, marking a decrease of 0.86.
  • For Price / Net Operating Revenue (X), as of Mar 25, the value is 4.50. This value exceeds the healthy maximum of 3. It has decreased from 4.66 (Mar 24) to 4.50, marking a decrease of 0.16.
  • For EarningsYield, as of Mar 25, the value is 0.03. This value is below the healthy minimum of 5. There is no change compared to the previous period (Mar 24) which recorded 0.03.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Alkem Laboratories Ltd as of February 23, 2026 is: ₹4,697.84

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of February 23, 2026, Alkem Laboratories Ltd is Overvalued by 12.87% compared to the current share price ₹5,392.00

Intrinsic Value of Alkem Laboratories Ltd as of February 23, 2026 is: ₹5,053.93

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of February 23, 2026, Alkem Laboratories Ltd is Overvalued by 6.27% compared to the current share price ₹5,392.00

Last 5 Year EPS CAGR: 7.58%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.92%, which is a positive sign.
  2. The company has higher reserves (6,969.62 cr) compared to borrowings (1,402.77 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (7.92 cr) and profit (358.85 cr) over the years.
  1. The stock has a high average Working Capital Days of 42.58, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 148.50, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Alkem Laboratories Ltd:
    1. Net Profit Margin: 17.09%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 19.29% (Industry Average ROCE: 16.29%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 18.06% (Industry Average ROE: 15.2%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 19.21
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.02
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 26.9 (Industry average Stock P/E: 57)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.08
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Alkem Laboratories Ltd. is a Public Limited Listed company incorporated on 08/08/1973 and has its registered office in the State of Maharashtra, India. Company's Corporate Identification Number(CIN) is L00305MH1973PLC174201 and registration number is 174201. Currently Company is involved in the business activities of Manufacture of pharmaceuticals, medicinal chemical and botanical products. Company's Total Operating Revenue is Rs. 8813.44 Cr. and Equity Capital is Rs. 23.91 Cr. for the Year ended 31/03/2025.
INDUSTRYADDRESSCONTACT
PharmaceuticalsAlkem House, Senapati Bapat Marg, Mumbai Maharashtra 400013Contact not found
Management
NamePosition Held
Mr. Basudeo N SinghExecutive Chairman
Mr. Sandeep SinghManaging Director
Mrs. Madhurima SinghExecutive Director
Mr. Srinivas SinghExecutive Director
Mr. Mritunjay Kumar SinghExecutive Director
Mr. Sarvesh SinghExecutive Director
Mr. Sujjain TalwarIndependent Director
Mr. Narendra Kumar AnejaIndependent Director
Mr. Rajeev KherIndependent Director
Mr. Ranjal Laxmana ShenoyIndependent Director
Ms. Neela BhattacherjeeIndependent Director
Mr. Diwakar GuptaIndependent Director

FAQ

What is the intrinsic value of Alkem Laboratories Ltd?

Alkem Laboratories Ltd's intrinsic value (as of 22 February 2026) is ₹5053.93 which is 6.27% lower the current market price of ₹5,392.00, indicating overvalued. Calculated using the PE ratio method, this valuation considers the company's ₹64,469 Cr. market cap, FY2025-2026 high/low of ₹5,934/4,492, reserves of ₹13,322 Cr, and liabilities of ₹20,287 Cr.

What is the Market Cap of Alkem Laboratories Ltd?

The Market Cap of Alkem Laboratories Ltd is 64,469 Cr..

What is the current Stock Price of Alkem Laboratories Ltd as on 22 February 2026?

The current stock price of Alkem Laboratories Ltd as on 22 February 2026 is ₹5,392.

What is the High / Low of Alkem Laboratories Ltd stocks in FY 2025-2026?

In FY 2025-2026, the High / Low of Alkem Laboratories Ltd stocks is ₹5,934/4,492.

What is the Stock P/E of Alkem Laboratories Ltd?

The Stock P/E of Alkem Laboratories Ltd is 26.9.

What is the Book Value of Alkem Laboratories Ltd?

The Book Value of Alkem Laboratories Ltd is 1,116.

What is the Dividend Yield of Alkem Laboratories Ltd?

The Dividend Yield of Alkem Laboratories Ltd is 0.83 %.

What is the ROCE of Alkem Laboratories Ltd?

The ROCE of Alkem Laboratories Ltd is 20.4 %.

What is the ROE of Alkem Laboratories Ltd?

The ROE of Alkem Laboratories Ltd is 19.4 %.

What is the Face Value of Alkem Laboratories Ltd?

The Face Value of Alkem Laboratories Ltd is 2.00.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Alkem Laboratories Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
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