Alkem Laboratories Ltd logo

Alkem Laboratories Ltd

ALKEM NSE

Alkem Laboratories is engaged in pharmaceutical business with global operations. The Company is engaged in the development, manufacture and sale of pharmaceutical and nutraceutical products.(Source : 202003-01 Annual Report Page No:107)

AI Verdict: HOLD Confidence: 6%

Alkem Laboratories trades at a PE of 27.4x with consistent 18-19% ROE and solid profit CAGR of 32% over 3 years, but tepid sales growth of 8% over the same period and declining promoter holding of -5.96% warrant caution. The stock deserves a HOLD until revenue growth momentum improves to justify the premium valuation.

Key Fundamentals

MidcapPharmaceuticalsHealthcare
Market Cap
₹65,277 Cr
Volatility
Moderate
P/E Ratio
28.18
EBITDA
₹2,830 Cr
Return on Equity
16.91%
Debt to Equity
0.13
Book Value
₹1,155.87
EPS
₹179.8
52W High
₹5,933.5
52W Low
₹4,716.2

Technical Indicators

Key Insights

Strengths

1
  • Company has been maintaining a healthy dividend payout of 26.3%

Weaknesses

2
  • The company has delivered a poor sales growth of 10.7% over past five years.
  • Promoter holding has decreased over last 3 years: -5.96%

Growth Rate

Revenue Growth
9.32% ↗
Net Income Growth
1.59% ↗
Cash Flow Change
-1.81% ↘
ROE
5.38% ↗
ROCE
4.61% ↗
EBITDA Margin (Avg.)
-17.15% ↗

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

Alkem Laboratories trades at a PE of 27.4x with consistent 18-19% ROE and solid profit CAGR of 32% over 3 years, but tepid sales growth of 8% over the same period and declining promoter holding of -5.96% warrant caution. The stock deserves a HOLD until revenue growth momentum improves to justify the premium valuation.

Bull Case 7
  • Consistent ROE of 18-19% over 3, 5, and 10-year periods indicates strong capital efficiency and durable competitive advantages
  • Compounded profit CAGR of 32% over 3 years significantly outpaces sales growth, reflecting meaningful margin expansion and operating leverage
  • Stock price CAGR of 17% over 3 years and 15% over 10 years demonstrates sustained long-term wealth creation
  • Market cap of Rs 64,039 Cr provides large-cap stability with adequate liquidity for institutional investors
  • TTM sales growth of 13% shows improving revenue momentum compared to the 8% 3-year CAGR, suggesting an inflection point
  • Healthy dividend payout ratio of 26.3% signals management confidence in cash flow sustainability
  • 50% of analysts rate the stock a BUY (9 out of 18 analysts), indicating majority positive consensus
Bear Case 7
  • Sales CAGR of only 8% over 3 years and 10.7% over 5 years is poor for a healthcare company in a high-growth Indian pharma market
  • Promoter holding has declined by 5.96% over the last 3 years, signaling potential lack of insider confidence
  • PE ratio of 27.4x is elevated for a company delivering only 11% 5-year sales CAGR, implying a PEG ratio above 2.5x on sales growth
  • Dividend yield of just 0.8% offers limited income protection in a rising interest rate environment
  • Price-to-book ratio of 4.65x is rich and leaves limited margin of safety for value investors
  • 16.67% of analysts (3 out of 18) have a SELL rating, indicating meaningful disagreement on the investment thesis
  • 5-year stock CAGR of only 11% underperforms broader Nifty Pharma index returns over the same period

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Positives 2
  • FY26 profit up 6% YoY May 28

    Alkem reported consolidated net profit of ₹23,511.6 million for FY26, up 6.1% YoY. Board recommended final dividend of ₹10 per share.

  • ₹24 Cr block trade on NSE Jun 9

    A block trade of ~45,079 shares at ₹5,359.50 per share worth ₹24.16 crore was executed on NSE, indicating institutional interest in the stock.

Neutral 4
  • Analyst meets in June Jun 15

    Alkem scheduled meetings with Millennium Management (Jun 19, virtual) and Haitong Securities (Jun 16, Mumbai) to discuss business updates.

  • Q4FY26 earnings call released May 28

    Audio recording of the Q4FY26 and FY26 earnings conference call is now available on the company's investor website.

  • Trading window opens June 1 May 28

    Alkem's trading window reopened on June 1, 2026, following disclosure of Q4 and full-year FY26 financial results.

  • Madhurima Singh re-appointed ED May 28

    Board approved re-appointment of Mrs. Madhurima Singh as Executive Director for 5 years from Dec 20, 2026, subject to shareholder approval.

TL;DR: Alkem delivered steady FY26 earnings growth of 6.1% with a ₹10/share dividend, and institutional block trade activity suggests continued confidence. No material headwinds emerged in recent news flow. The company is actively engaging analysts and investors, signalling transparency. The trend appears stable with modest growth momentum heading into FY27.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
2,903
2,968
3,440
3,324
2,936
3,032
3,415
3,374
3,144
3,371
4,001
3,737
3,603
Expenses
2,549
2,579
2,693
2,616
2,534
2,423
2,662
2,615
2,752
2,632
3,080
2,909
3,086
Operating Profit
353
389
747
708
402
609
753
759
391
739
921
828
517
OPM %
12%
13%
22%
21%
14%
20%
22%
23%
12%
22%
23%
22%
14%
Other Income
-34
66
6
42
76
120
134
93
146
149
104
90
65
Interest
29
30
30
25
27
29
28
36
28
30
35
42
54
Depreciation
78
72
74
70
83
80
79
85
112
88
94
95
106
PBT
212
353
648
655
367
619
780
731
396
771
896
781
423
Tax %
68%
18%
5%
8%
17%
11%
10%
12%
18%
13%
13%
16%
40%
Net Profit
68
288
615
604
304
550
702
641
322
668
779
653
251
EPS in Rs
5.94
23.98
51.9
49.76
24.55
45.6
57.6
52.34
25.58
55.56
63.99
53.19
19.78
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
3,674
4,905
5,688
6,401
7,357
8,344
8,865
10,634
11,599
12,668
12,965
14,712
Expenses
3,248
4,038
4,687
5,392
6,237
6,868
6,920
8,580
9,977
10,419
10,452
11,707
Operating Profit
427
866
1,001
1,009
1,120
1,476
1,945
2,054
1,622
2,249
2,512
3,005
OPM %
12%
18%
18%
16%
15%
18%
22%
19%
14%
18%
19%
20%
Other Income
176
227
110
115
82
102
230
146
101
186
494
409
Interest
81
71
45
55
55
65
59
52
107
112
122
161
Depreciation
71
93
101
143
193
253
275
304
310
299
357
382
PBT
451
928
965
926
955
1,260
1,842
1,844
1,305
2,023
2,527
2,871
Tax %
13%
19%
6%
31%
19%
9%
12%
9%
23%
10%
12%
18%
Net Profit
392
752
905
638
774
1,149
1,618
1,680
1,007
1,811
2,215
2,351
EPS in Rs
32.75
62.02
74.61
52.77
63.61
94.26
133
138
82.31
150
181
193
Div. Payout %
12%
20%
20%
25%
25%
27%
23%
25%
61%
27%
25%
28%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
24
24
24
24
24
24
24
24
24
24
24
24
Reserves
2,975
3,668
4,444
4,840
5,415
6,137
7,353
8,614
9,021
10,288
11,961
13,796
Borrowings
1,306
658
659
998
944
1,616
1,707
2,668
1,397
1,418
1,381
2,047
Other Liabilities
986
1,184
1,440
1,803
1,824
2,169
2,435
2,763
3,315
3,844
4,325
5,006
Total Liabilities
5,291
5,534
6,568
7,664
8,208
9,946
11,519
14,069
13,757
15,575
17,691
20,873
Fixed Assets
1,374
1,450
1,797
2,284
2,530
2,908
2,793
2,902
2,683
2,873
2,852
4,015
CWIP
111
172
299
381
493
363
393
339
323
159
548
138
Investments
481
509
553
444
324
261
333
371
622
484
1,846
1,869
Other Assets
3,325
3,403
3,918
4,555
4,861
6,413
8,000
10,457
10,129
12,060
12,445
14,851
Total Assets
5,291
5,534
6,568
7,664
8,208
9,946
11,519
14,069
13,757
15,575
17,691
20,873
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
325
726
471
266
780
585
1,265
1,111
1,682
1,948
1,913
1,963
Investing
-235
205
-294
-351
-318
-737
-995
-1,433
120
-1,011
-1,288
-1,667
Financing
-52
-927
-138
85
-379
79
-272
380
-1,761
-1,145
-811
-503
Net Cash Flow
39
3
40
0
82
-73
-2
58
42
-207
-186
-208
Free Cash Flow
190
472
-163
-411
253
237
1,116
783
1,453
1,761
1,278
1,476
CFO/OP
101
107
73
47
92
59
86
73
121
105
96
86
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
52
42
46
62
62
72
66
65
67
65
69
74
Inventory Days
169
169
198
221
186
198
241
262
194
197
224
239
Days Payable
101
108
122
147
119
104
112
102
87
129
141
161
Cash Conversion Cycle
121
103
122
135
129
167
196
225
174
132
152
152
Working Capital Days
-52
13
34
40
55
44
48
31
66
135
124
141
ROCE %
12%
23%
21%
17%
16%
18%
22%
18%
14%
20%
20%
21%

Shareholding Pattern

As of Mar 2026
Promoters 51.20%
DIIs 21.40%
Public 17.06%
FIIs 10.16%
Others 0.19%
Total 100.01%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
60.16%
58.84%
58.84%
57.13%
57.13%
57.14%
57.16%
57.16%
57.16%
57.16%
56.74%
56.74%
56.74%
56.38%
55.66%
55.66%
55.13%
53.04%
51.20%
51.20%
51.20%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
9.11%
8.69%
9.02%
10.15%
9.41%
9.11%
9.48%
9.97%
10.16%
DIIs
12.97%
14.28%
13.78%
13.76%
13.93%
13.88%
15.26%
16.44%
16.69%
15.43%
17.64%
14.94%
15.63%
18.57%
19.21%
18.01%
19.42%
21.80%
21.93%
21.54%
21.40%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
21.75%
21.70%
21.15%
22.85%
22.63%
22.33%
22.28%
21.74%
21.44%
20.61%
19.36%
18.60%
18.31%
16.15%
15.84%
15.90%
15.77%
15.69%
17.18%
17.09%
17.06%
Others
5.12%
5.17%
6.23%
6.26%
6.31%
6.65%
5.30%
4.67%
4.71%
6.80%
6.26%
9.72%
0.21%
0.21%
0.26%
0.28%
0.28%
0.36%
0.22%
0.21%
0.19%
No. of Shareholders
92,594
93,540
87,392
86,881
81,869
84,104
79,721
76,516
73,440
66,790
69,442
65,184
65,830
69,627
74,744
84,038
84,326
79,740
67,196
64,536
62,835

Documents

1
Concall - Feb 2018 Feb 2018
2
Concall - Jun 2020 Jun 2020
3
Concall - Aug 2020 Aug 2020
4
Concall - Jun 2026 Jun 2026
5
Concall - Feb 2018 Feb 2018

Frequently Asked Questions about Alkem Laboratories Ltd

What does Alkem Laboratories Ltd do?
Alkem Laboratories is engaged in pharmaceutical business with global operations. The Company is engaged in the development, manufacture and sale of pharmaceutical and nutraceutical products.(Source : 202003-01 Annual Report Page No:107)
Where is Alkem Laboratories Ltd (ALKEM) listed?
Alkem Laboratories Ltd is listed on the Indian stock exchanges. It is listed on NSE: ALKEM and BSE: 539523. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Alkem Laboratories Ltd belong to?
Alkem Laboratories Ltd operates in the Healthcare sector within the Pharmaceuticals & Biotechnology industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Alkem Laboratories Ltd?
Alkem Laboratories Ltd has a market capitalisation of approximately ₹65276.51 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Alkem Laboratories Ltd?
The Price-to-Earnings (PE) ratio of Alkem Laboratories Ltd is 28.18. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Alkem Laboratories Ltd?
Over the past 52 weeks, Alkem Laboratories Ltd has traded between a low of ₹4,716.2 and a high of ₹5,933.5. This range helps investors understand the stock's price volatility and recent trading levels.
Does Alkem Laboratories Ltd pay dividends?
Yes, Alkem Laboratories Ltd has a dividend yield of 0.79%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Alkem Laboratories Ltd?
Alkem Laboratories Ltd has a Return on Equity (ROE) of 16.91%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Alkem Laboratories Ltd on Tapetide?
On Tapetide, you can view Alkem Laboratories Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Alkem Laboratories is engaged in pharmaceutical business with global operations. The Company is engaged in the development, manufacture and sale of pharmaceutical and nutraceutical products.(Source : 202003-01 Annual Report Page No:107)

Website alkemlabs.com
CEO Mr. Basudeo Narian Singh
Employees 18,785
Listed 2015-12-23
Face Value ₹ 2
Issued Size 11,95,65,000

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