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Last Updated: April 2, 2026, 2:35 am
Author: Getaka|Social: XLinkedIn
Stock Ticker - BSE: 539523 | NSE: ALKEM

Alkem Laboratories Ltd: Intrinsic Value & Share Price Analysis

Fair Value

₹4,559.48Overvalued by 13.05%vs CMP ₹5,244.00

P/E (26.1) × ROE (19.4%) × BV (₹1,116.00) × DY (0.86%)

₹2,642.16Overvalued by 49.62%vs CMP ₹5,244.00
MoS: -98.5% (Negative)Confidence: 63/100 (Moderate)Models: 1 Fair, 8 Over
ModelCategoryValueWeightSignal
PE-ROEEarnings₹4,905.0822%Fair (-6.5%)
Graham NumberEarnings₹2,231.5516%Over (-57.4%)
Earnings PowerEarnings₹1,019.4313%Over (-80.6%)
DCFCash Flow₹2,857.2113%Over (-45.5%)
Net Asset ValueAssets₹1,117.017%Over (-78.7%)
EV/EBITDAEnterprise₹2,204.069%Over (-58%)
Earnings YieldEarnings₹1,983.207%Over (-62.2%)
ROCE CapitalReturns₹2,629.509%Over (-49.9%)
Revenue MultipleRevenue₹1,627.695%Over (-69%)
Consensus (9 models)₹2,642.16100%Overvalued
Key Drivers: Wide model spread (₹1,019–₹4,905) — high uncertainty.

PE-ROE · Graham · EPV · DCF · NAV · EV/EBITDA · DDM · Earnings Yield · ROCE Capital · Revenue Multiple | CoE: 12% · Terminal: 4% · EPS CAGR: 7.6%

*Investments are subject to market risks

Investment Snapshot

71
Alkem Laboratories Ltd scores 71/100 (Strong)
Based on 5 dimensions: health, institutional flow, earnings quality, momentum, and peer comparison
Stock Health92/100 · Strong
ROCE 20.4% ExcellentROE 19.4% ExcellentD/E 0.22 Low debtInterest Coverage 0.0x RiskyProfitable 5/5 years Consistent
Smart Money75/100 · Strong
FII holding up 0.57% (6mo) Slight increaseDII holding up 2.12% MF buyingPromoter holding at 51.2% Stable
Earnings Quality40/100 · Moderate
OPM stable around 19% SteadyWorking capital: 124 days Capital intensive
Quarterly Momentum68/100 · Strong
Revenue (4Q): +9% YoY GrowingProfit (4Q): +12% YoY Positive
Industry Rank85/100 · Strong
P/E 26.1 vs industry 53.8 Cheaper than peersROCE 20.4% vs industry 16.4% Above peersROE 19.4% vs industry 15.2% Above peers3Y sales CAGR: 7% Slow

Weights: Health 30% · Earnings Quality 25% · Momentum 20% · Industry Rank 15% · Smart Money 10%. Scores are computed from reported financials and recalculated daily. Not investment advice.

Alkem Laboratories Ltd Investor Signals

Computed from valuation, cash flow, balance sheet, ownership and quarterly trend data already available in this stock page.

Value Trap Score
40/100
Moderate
Derived from: Cheapness + weak quality + weak cash support
Current data: P/E 26.1 vs Ind 53.8 | ROCE 20.4% | ROE 19.4% | CFO/NP N/A
Balance Sheet Stress
20/100
Comfortable
Derived from: Leverage + debt servicing + liquidity + debt trend
Current data: D/E 0.22x | IntCov 0.0x | Current 1.92x | Borrow/Reserve 0.18x
Cash Flow Reliability
29/100
Weak
Derived from: Cash backing of earnings + working capital pressure
Current data: CFO ₹0 Cr | NP ₹2,215 Cr | CFO/NP N/A
Ownership Accumulation
0
Neutral
Derived from: FII + DII + promoter direction, adjusted by crowding
Current data: FII +0.50 pp | DII -0.39 pp | Prom 0.00 pp
Business Momentum
+43
Stable
Derived from: Latest quarter sales + profit + OPM change
Current data: Q Sales +18.7% | Q NP +16.6% | Q OPM +1.0 pp
Derived FieldValueHow it is derived
Valuation Gap %-49.6%((Fair Value - CMP) / CMP) × 100
Borrowings / Reserves0.18xLatest borrowings divided by latest reserves
CFO / Net ProfitN/ALatest operating cash flow divided by latest net profit
FII Change+0.50 ppLatest FII% minus previous FII%
DII Change-0.39 ppLatest DII% minus previous DII%
Promoter Change0.00 ppLatest promoter% minus previous promoter%
Shareholder Count Change-2,660Latest shareholder count minus previous count
Quarterly Sales Change+18.7%Latest quarter sales vs previous quarter sales
Quarterly Profit Change+16.6%Latest quarter net profit vs previous quarter net profit
Quarterly OPM Change+1.0 ppLatest quarter OPM minus previous quarter OPM

Share Price and Basic Stock Data

Last Updated: April 2, 2026, 2:35 am

Market Cap 62,655 Cr.
Current Price 5,244
Intrinsic Value₹2,642.16
High / Low 5,934/4,612
Stock P/E26.1
Book Value 1,116
Dividend Yield0.86 %
ROCE20.4 %
ROE19.4 %
Face Value 2.00
PEG Ratio3.44

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 ⇩
Alkem Laboratories Ltd 62,655 Cr. 5,244 5,934/4,61226.1 1,1160.86 %20.4 %19.4 % 2.00
Glenmark Life Sciences Ltd 59,293 Cr. 2,101 2,298/1,33621.9 3400.12 %19.4 %15.8 % 1.00
Glenmark Pharmaceuticals Ltd 59,293 Cr. 2,101 2,298/1,33621.9 3400.12 %19.4 %15.8 % 1.00
Biocon Ltd 59,196 Cr. 365 425/29572.1 2000.14 %6.25 %4.76 % 5.00
Abbott India Ltd 56,291 Cr. 26,490 37,000/25,35036.9 1,8881.79 %46.2 %35.7 % 10.0
Industry Average19,815.15 Cr1,053.8453.84201.200.39%16.35%15.16%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

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

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 190190472-163-4112532371,1167831,4531,7611,278
CFO/OP 97%101%107%73%47%92%59%86%73%121%105%96%

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 2,601,633 1.6 1477.081,802,9782026-02-23 07:04:3544.3%
SBI Large & Midcap Fund 1,476,712 2.24 838.4N/AN/AN/A
ICICI Prudential Multi Asset Fund 1,289,672 0.91 732.211,450,0722026-02-23 07:04:35-11.06%
Nippon India Growth Mid Cap Fund 1,163,397 1.58 660.52N/AN/AN/A
SBI Contra Fund 1,004,007 1.17 570.03452,4002025-12-07 15:45:16121.93%
ICICI Prudential Large & Mid Cap Fund 968,758 2 550.011,121,7972026-02-23 07:04:35-13.64%
DSP Mid Cap Fund 748,010 2.23 424.681,566,4212025-12-07 16:59:56-52.25%
SBI Midcap Fund 685,892 1.74 389.42N/AN/AN/A
DSP Large & Mid Cap Fund 440,106 1.43 249.87N/AN/AN/A
Nippon India Multi Cap Fund 418,576 0.49 237.65N/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

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

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 and is it undervalued?

As of 04 April 2026, Alkem Laboratories Ltd's intrinsic value is ₹2642.16, which is 49.62% lower than the current market price of ₹5,244.00, suggesting the stock is overvalued. This is calculated using the PE ratio method factoring in ROE (19.4 %), book value (₹1,116), dividend yield (0.86 %), and 5-year EPS CAGR.

What is the current share price and 52-week range of Alkem Laboratories Ltd?

Alkem Laboratories Ltd is trading at ₹5,244.00 as of 04 April 2026, with a FY2026-2027 high of ₹5,934 and low of ₹4,612. The stock is currently in the middle of its 52-week range. Market cap stands at ₹62,655 Cr..

How does Alkem Laboratories Ltd's P/E ratio compare to its industry?

Alkem Laboratories Ltd has a P/E ratio of 26.1, which is below the industry average of 53.84. Trading at a steep discount to peers could signal a value opportunity or reflect concerns about the company's fundamentals.

Is Alkem Laboratories Ltd financially healthy?

Key indicators for Alkem Laboratories Ltd: ROCE of 20.4 % indicates efficient capital utilization; ROE of 19.4 % shows strong shareholder returns. Dividend yield is 0.86 %.

Is Alkem Laboratories Ltd profitable and how is the profit trend?

Alkem Laboratories Ltd reported a net profit of ₹2,215 Cr in Mar 2025 on revenue of ₹12,965 Cr. Compared to ₹1,680 Cr in Mar 2022, the net profit shows an improving trend.

Does Alkem Laboratories Ltd pay dividends?

Alkem Laboratories Ltd has a dividend yield of 0.86 % at the current price of ₹5,244.00. The company pays dividends, though the yield is modest.

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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