Alkem Laboratories Limited (ALKEM) Fair Value & Analysis

Healthcare · IN · Market cap ₹665B

A solid business, but screening 40% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (₹5,169). The favourable scenario is already priced in.
• Solid but not exceptional quality (62/100) and above fair value, neither a clear bargain nor a standout compounder.
• A fairly wide model range (₹2,264 to ₹5,169) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range ₹2,605 – ₹6,256 · fair‑value band ₹2,264 – ₹5,169 · the ₹5,620 price screens above the ₹3,368 fair value. Dashed = 300-day average. As of Jul 18, 2026.

Full chart & analysis →

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Analysis

Alkem Laboratories Limited (ALKEM) currently trades at ₹5,620, while our model-based Fair Value estimate is ₹3,368, implying the stock looks roughly 40.1% overvalued today. The Quality Score stands at 62/100 (solid quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Alkem Laboratories Limited generated revenue of ₹147B at a net margin of 15.7%. Revenue grew 14.6% year over year. It earns a return on equity of 17.6%. Net debt stands at ₹18.0B. Fundamentals as of Jul 18, 2026

Our scenario range runs from ₹2,264 (bear case) to ₹5,169 (bull case); at ₹5,620, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 5% below its 52-week high and 20% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -49% fair-value upside, at -40%, ALKEM screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Growth Earnings (₹3,976) versus Asset-Based (₹774.43). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Alkem Laboratories Limited, a pharmaceutical company, engages in the research and development, manufacture, and sale of pharmaceutical and nutraceutical products in India, the United States, and internationally.

Full company description

Alkem Laboratories Limited, a pharmaceutical company, engages in the research and development, manufacture, and sale of pharmaceutical and nutraceutical products in India, the United States, and internationally. The company offers branded generics, generic drugs, active pharmaceutical ingredients, and biosimilars, and nutraceuticals in acute and chronic therapeutic areas comprising anti-infective, gastroenterology, pain management, iron deficiency, diabetology, central nervous system, anti-osteoporosis, gynecology, respiratory, ophthalmology, rheumatology, urology, dermatology, cardiology, neurology, and oncology. It also provides vitamins, minerals, and nutrients; cough syrups, hepatoprotective tonic, anti-dandruff shampoo, mouth wash, pregnancy detection kits, and condoms; and anti-bloating syrups, tablets, and powder. The company was incorporated in 1973 and is headquartered in Mumbai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Alkem Laboratories Limited reported revenue of ₹147B in FY2026 versus ₹105B in FY2022, a compound +8.8%/yr. Reported net income was ₹23.0B in FY2026, compounding +8.8%/yr from FY2022.

ALKEM screens 40% overvalued. Compare with Jiangsu Hengrui Pharmaceuticals Co →

Peer Group

Drug Manufacturers - Specialty & Generic · 626 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0: the price sits above our fair-value range.

Insider activity: 30/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.