Alkem Laboratories Ltd: Intrinsic Value & Share Price Analysis

Share Price and Basic Stock Data

Last Updated: August 21, 2025, 5:55 am

Quick Insight

Alkem Laboratories Ltd, a pharmaceutical player, exhibits promising fundamentals with a P/E ratio of 28.3 and robust return metrics, boasting an ROE of 19.4% and ROCE of 20.4%. The company's operational efficiency is reflected in its healthy OPM of 12%, translating to a Net Profit of ₹2,215 Cr. While the promoters hold a significant stake at 56.38%, institutional ownership stands at 27.25%. Alkem's balance sheet reveals strong financial health, with reserves amounting to ₹11,961 Cr and a manageable debt level of ₹1,381 Cr, resulting in a comfortable ICR of 22.74x. The stock's current P/BV of 5.73x suggests a potential undervaluation, presenting an opportunity for investors.

Competitors of Alkem Laboratories Ltd

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Quarterly Result

Last Updated: August 20, 2025, 2:00 pm

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

• For Sales, as of Jun 2025, the value is 3,371.00 Cr.. The value appears strong and on an upward trend. It has increased from 3,144.00 Cr. (Mar 2025) to 3,371.00 Cr., marking an increase of 227.00 Cr..
• For Expenses, as of Jun 2025, the value is 2,632.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 2,752.00 Cr. (Mar 2025) to 2,632.00 Cr., marking a decrease of 120.00 Cr..
• For Operating Profit, as of Jun 2025, the value is 739.00 Cr.. The value appears strong and on an upward trend. It has increased from 391.00 Cr. (Mar 2025) to 739.00 Cr., marking an increase of 348.00 Cr..
• For OPM %, as of Jun 2025, the value is 22.00%. The value appears strong and on an upward trend. It has increased from 12.00% (Mar 2025) to 22.00%, marking an increase of 10.00%.
• For Other Income, as of Jun 2025, the value is 149.00 Cr.. The value appears strong and on an upward trend. It has increased from 146.00 Cr. (Mar 2025) to 149.00 Cr., marking an increase of 3.00 Cr..
• For Interest, as of Jun 2025, the value is 30.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 28.00 Cr. (Mar 2025) to 30.00 Cr., marking an increase of 2.00 Cr..
• For Depreciation, as of Jun 2025, the value is 88.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 112.00 Cr. (Mar 2025) to 88.00 Cr., marking a decrease of 24.00 Cr..
• For Profit before tax, as of Jun 2025, the value is 771.00 Cr.. The value appears strong and on an upward trend. It has increased from 396.00 Cr. (Mar 2025) to 771.00 Cr., marking an increase of 375.00 Cr..
• For Tax %, as of Jun 2025, the value is 13.00%. The value appears to be improving (decreasing) as expected. It has decreased from 18.00% (Mar 2025) to 13.00%, marking a decrease of 5.00%.
• For Net Profit, as of Jun 2025, the value is 668.00 Cr.. The value appears strong and on an upward trend. It has increased from 322.00 Cr. (Mar 2025) to 668.00 Cr., marking an increase of 346.00 Cr..
• For EPS in Rs, as of Jun 2025, the value is 55.56. The value appears strong and on an upward trend. It has increased from 25.58 (Mar 2025) to 55.56, marking an increase of 29.98.

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

Profit & Loss - Annual Report

Last Updated: June 16, 2025, 6:11 pm

Growth

Last Updated: Unknown

Balance Sheet

Last Updated: July 25, 2025, 3:38 pm

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

• For Equity Capital, as of Mar 2025, the value is 24.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded 24.00 Cr..
• For Reserves, as of Mar 2025, the value is 11,961.00 Cr.. The value appears strong and on an upward trend. It has increased from 10,288.00 Cr. (Mar 2024) to 11,961.00 Cr., marking an increase of 1,673.00 Cr..
• For Borrowings, as of Mar 2025, the value is 1,381.00 Cr.. The value appears to be improving (decreasing). Additionally, since Reserves exceed Borrowings, this is considered a positive sign. It has decreased from 1,418.00 Cr. (Mar 2024) to 1,381.00 Cr., marking a decrease of 37.00 Cr..
• For Other Liabilities, as of Mar 2025, the value is 4,325.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 3,844.00 Cr. (Mar 2024) to 4,325.00 Cr., marking an increase of 481.00 Cr..
• For Total Liabilities, as of Mar 2025, the value is 17,691.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 15,575.00 Cr. (Mar 2024) to 17,691.00 Cr., marking an increase of 2,116.00 Cr..
• For Fixed Assets, as of Mar 2025, the value is 2,852.00 Cr.. The value appears to be declining and may need further review. It has decreased from 2,873.00 Cr. (Mar 2024) to 2,852.00 Cr., marking a decrease of 21.00 Cr..
• For CWIP, as of Mar 2025, the value is 548.00 Cr.. The value appears strong and on an upward trend. It has increased from 159.00 Cr. (Mar 2024) to 548.00 Cr., marking an increase of 389.00 Cr..
• For Investments, as of Mar 2025, the value is 1,846.00 Cr.. The value appears strong and on an upward trend. It has increased from 484.00 Cr. (Mar 2024) to 1,846.00 Cr., marking an increase of 1,362.00 Cr..
• For Other Assets, as of Mar 2025, the value is 12,445.00 Cr.. The value appears strong and on an upward trend. It has increased from 12,060.00 Cr. (Mar 2024) to 12,445.00 Cr., marking an increase of 385.00 Cr..
• For Total Assets, as of Mar 2025, the value is 17,691.00 Cr.. The value appears strong and on an upward trend. It has increased from 15,575.00 Cr. (Mar 2024) to 17,691.00 Cr., marking an increase of 2,116.00 Cr..

Notably, the Reserves (11,961.00 Cr.) exceed the Borrowings (1,381.00 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.

Cash Flow

Free Cash Flow

Financial Efficiency Indicators

Mutual Fund Holdings

Key Financial Ratios

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 24, the value is 2.00. This value is within the healthy range. There is no change compared to the previous period (Mar 23) which recorded 2.00.
• For Basic EPS (Rs.), as of Mar 24, the value is 150.19. This value is within the healthy range. It has increased from 82.31 (Mar 23) to 150.19, marking an increase of 67.88.
• For Diluted EPS (Rs.), as of Mar 24, the value is 150.19. This value is within the healthy range. It has increased from 82.31 (Mar 23) to 150.19, marking an increase of 67.88.
• For Cash EPS (Rs.), as of Mar 24, the value is 176.56. This value is within the healthy range. It has increased from 110.18 (Mar 23) to 176.56, marking an increase of 66.38.
• For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 896.23. It has increased from 789.21 (Mar 23) to 896.23, marking an increase of 107.02.
• For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 896.23. It has increased from 789.21 (Mar 23) to 896.23, marking an increase of 107.02.
• For Revenue From Operations / Share (Rs.), as of Mar 24, the value is 1,059.61. It has increased from 970.24 (Mar 23) to 1,059.61, marking an increase of 89.37.
• For PBDIT / Share (Rs.), as of Mar 24, the value is 213.83. This value is within the healthy range. It has increased from 152.70 (Mar 23) to 213.83, marking an increase of 61.13.
• For PBIT / Share (Rs.), as of Mar 24, the value is 188.79. This value is within the healthy range. It has increased from 126.73 (Mar 23) to 188.79, marking an increase of 62.06.
• For PBT / Share (Rs.), as of Mar 24, the value is 169.23. This value is within the healthy range. It has increased from 109.14 (Mar 23) to 169.23, marking an increase of 60.09.
• For Net Profit / Share (Rs.), as of Mar 24, the value is 151.52. This value is within the healthy range. It has increased from 84.22 (Mar 23) to 151.52, marking an increase of 67.30.
• For NP After MI And SOA / Share (Rs.), as of Mar 24, the value is 150.21. This value is within the healthy range. It has increased from 82.32 (Mar 23) to 150.21, marking an increase of 67.89.
• For PBDIT Margin (%), as of Mar 24, the value is 20.18. This value is within the healthy range. It has increased from 15.73 (Mar 23) to 20.18, marking an increase of 4.45.
• For PBIT Margin (%), as of Mar 24, the value is 17.81. This value is within the healthy range. It has increased from 13.06 (Mar 23) to 17.81, marking an increase of 4.75.
• For PBT Margin (%), as of Mar 24, the value is 15.97. This value is within the healthy range. It has increased from 11.24 (Mar 23) to 15.97, marking an increase of 4.73.
• For Net Profit Margin (%), as of Mar 24, the value is 14.29. This value exceeds the healthy maximum of 10. It has increased from 8.67 (Mar 23) to 14.29, marking an increase of 5.62.
• For NP After MI And SOA Margin (%), as of Mar 24, the value is 14.17. This value is within the healthy range. It has increased from 8.48 (Mar 23) to 14.17, marking an increase of 5.69.
• For Return on Networth / Equity (%), as of Mar 24, the value is 17.41. This value is within the healthy range. It has increased from 10.88 (Mar 23) to 17.41, marking an increase of 6.53.
• For Return on Capital Employeed (%), as of Mar 24, the value is 19.49. This value is within the healthy range. It has increased from 15.07 (Mar 23) to 19.49, marking an increase of 4.42.
• For Return On Assets (%), as of Mar 24, the value is 11.52. This value is within the healthy range. It has increased from 7.15 (Mar 23) to 11.52, marking an increase of 4.37.
• For Long Term Debt / Equity (X), as of Mar 24, the value is 0.00. This value is below the healthy minimum of 0.2. There is no change compared to the previous period (Mar 23) which recorded 0.00.
• For Total Debt / Equity (X), as of Mar 24, the value is 0.11. This value is within the healthy range. It has decreased from 0.14 (Mar 23) to 0.11, marking a decrease of 0.03.
• For Asset Turnover Ratio (%), as of Mar 24, the value is 0.86. It has increased from 0.83 (Mar 23) to 0.86, marking an increase of 0.03.
• For Current Ratio (X), as of Mar 24, the value is 2.61. This value is within the healthy range. It has increased from 2.35 (Mar 23) to 2.61, marking an increase of 0.26.
• For Quick Ratio (X), as of Mar 24, the value is 1.94. This value is within the healthy range. It has increased from 1.65 (Mar 23) to 1.94, marking an increase of 0.29.
• For Inventory Turnover Ratio (X), as of Mar 24, the value is 1.25. This value is below the healthy minimum of 4. It has increased from 1.09 (Mar 23) to 1.25, marking an increase of 0.16.
• For Dividend Payout Ratio (NP) (%), as of Mar 24, the value is 29.96. This value is within the healthy range. It has decreased from 53.45 (Mar 23) to 29.96, marking a decrease of 23.49.
• For Dividend Payout Ratio (CP) (%), as of Mar 24, the value is 25.68. This value is within the healthy range. It has decreased from 40.63 (Mar 23) to 25.68, marking a decrease of 14.95.
• For Earning Retention Ratio (%), as of Mar 24, the value is 70.04. This value exceeds the healthy maximum of 70. It has increased from 46.55 (Mar 23) to 70.04, marking an increase of 23.49.
• For Cash Earning Retention Ratio (%), as of Mar 24, the value is 74.32. This value exceeds the healthy maximum of 70. It has increased from 59.37 (Mar 23) to 74.32, marking an increase of 14.95.
• For Interest Coverage Ratio (X), as of Mar 24, the value is 22.74. This value is within the healthy range. It has increased from 17.00 (Mar 23) to 22.74, marking an increase of 5.74.
• For Interest Coverage Ratio (Post Tax) (X), as of Mar 24, the value is 18.20. This value is within the healthy range. It has increased from 11.34 (Mar 23) to 18.20, marking an increase of 6.86.
• For Enterprise Value (Cr.), as of Mar 24, the value is 59,097.05. It has increased from 39,701.27 (Mar 23) to 59,097.05, marking an increase of 19,395.78.
• For EV / Net Operating Revenue (X), as of Mar 24, the value is 4.67. This value exceeds the healthy maximum of 3. It has increased from 3.42 (Mar 23) to 4.67, marking an increase of 1.25.
• For EV / EBITDA (X), as of Mar 24, the value is 23.12. This value exceeds the healthy maximum of 15. It has increased from 21.75 (Mar 23) to 23.12, marking an increase of 1.37.
• For MarketCap / Net Operating Revenue (X), as of Mar 24, the value is 4.66. This value exceeds the healthy maximum of 3. It has increased from 3.50 (Mar 23) to 4.66, marking an increase of 1.16.
• For Retention Ratios (%), as of Mar 24, the value is 70.03. This value exceeds the healthy maximum of 70. It has increased from 46.54 (Mar 23) to 70.03, marking an increase of 23.49.
• For Price / BV (X), as of Mar 24, the value is 5.73. This value exceeds the healthy maximum of 3. It has increased from 4.49 (Mar 23) to 5.73, marking an increase of 1.24.
• For Price / Net Operating Revenue (X), as of Mar 24, the value is 4.66. This value exceeds the healthy maximum of 3. It has increased from 3.50 (Mar 23) to 4.66, marking an increase of 1.16.
• For EarningsYield, as of Mar 24, the value is 0.03. This value is below the healthy minimum of 5. It has increased from 0.02 (Mar 23) to 0.03, marking an increase of 0.01.

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

Fair Value

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Strength and Weakness