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Alkem Laboratories Ltd.
(ALKEM)
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Rating:66Neutral
Price Target:
₹5,778.00
▲(3.96% Upside)
Action:Reiterated
Date:08/29/26
The score is primarily driven by strong financial performance (steady growth, solid profitability, and low leverage), partially offset by weaker cash conversion. Technical indicators are currently bearish/soft (below key moving averages with negative MACD), and valuation support is limited given the ~29.7 P/E and ~1% dividend yield.
Positive Factors
Steady Revenue Growth
Sustained revenue expansion indicates continuing demand for Alkem’s branded generics and pharmaceutical products. Growth across domestic and international channels can strengthen operating scale and support durable earnings capacity.
Negative Factors
Weak Cash Conversion
Weak conversion of reported earnings into cash may reflect working-capital needs or reinvestment demands. If persistent, it could limit funds available for capacity expansion, acquisitions, debt reduction or shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Growth
Sustained revenue expansion indicates continuing demand for Alkem’s branded generics and pharmaceutical products. Growth across domestic and international channels can strengthen operating scale and support durable earnings capacity.
Read all positive factors
Alkem Laboratories Ltd. (ALKEM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹626.09B
Dividend Yield1.01%
Average Volume (3M)23.73K
Price to Earnings (P/E)29.1
Beta (1Y)0.61
Revenue Growth13.36%
EPS Growth-5.66%
CountryIN
Employees19,346
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)180.25
Shares Outstanding119,565,000
10 Day Avg. Volume18,644
30 Day Avg. Volume23,728
Financial Highlights & Ratios
PEG Ratio4.33
Price to Book (P/B)4.54
Price to Sales (P/S)4.26
P/FCF Ratio46.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹6,250.00Price Target Upside12.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)193.69
Revenue Forecast (FY)₹166.94B
Alkem Laboratories Ltd. Business Overview & Revenue Model
Company Description
Alkem Laboratories Ltd. functions as a pharmaceutical enterprise, engaged in the research, manufacturing, and worldwide distribution of both medicinal and nutritional products. Its comprehensive offerings encompass a variety of branded and generic...
How the Company Makes Money
Alkem makes money primarily by selling pharmaceutical products, with revenues driven by (1) domestic sales in India and (2) international sales through exports and overseas market presence. Its core revenue model is product-led: it manufactures fi...
Alkem Laboratories Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 150.81B | 147.12B | 128.05B | 124.39B | 114.40B | 105.12B |
| Gross Profit | 90.49B | 96.19B | 79.47B | 74.07B | 64.58B | 62.29B |
| EBITDA | 32.91B | 34.14B | 29.71B | 24.18B | 17.09B | 21.89B |
| Net Income | 21.57B | 23.02B | 21.65B | 17.96B | 9.84B | 16.46B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 208.73B | 176.91B | 155.75B | 137.57B | 140.69B |
| Cash, Cash Equivalents and Short-Term Investments | 40.61B | 40.65B | 37.78B | 42.70B | 11.43B | 13.13B |
| Total Debt | 0.00 | 20.47B | 13.81B | 14.18B | 13.97B | 26.68B |
| Total Liabilities | -143.49B | 65.24B | 52.57B | 48.60B | 43.22B | 52.22B |
| Stockholders Equity | 143.49B | 138.20B | 119.85B | 103.12B | 90.45B | 86.38B |
Cash Flow | ||||||
| Free Cash Flow | 4.40B | 13.46B | 12.37B | 16.89B | 14.50B | 7.72B |
| Operating Cash Flow | 8.37B | 19.63B | 19.13B | 19.48B | 16.82B | 11.11B |
| Investing Cash Flow | -15.68B | -16.67B | -12.99B | -10.09B | 1.13B | -14.35B |
| Financing Cash Flow | 4.63B | -5.03B | -8.11B | -11.45B | -17.61B | 3.80B |
Alkem Laboratories Ltd. Technical Analysis
Negative
5558.15
Price Trends
5405.67
Negative
5429.36
Negative
5468.92
Negative
Market Momentum
-25.64
Negative
45.98
Neutral
26.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ALKEM, the sentiment is Negative. The current price of 5558.15 is above the 20-day moving average (MA) of 5244.22, above the 50-day MA of 5405.67, and above the 200-day MA of 5468.92, indicating a bearish trend. The MACD of -25.64 indicates Negative momentum. The RSI at 45.98 is Neutral, neither overbought nor oversold. The STOCH value of 26.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ALKEM.
Alkem Laboratories Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹1.04T | 31.52 | ― | 0.64% | -0.92% | -41.75% | |
69 Neutral | ₹979.87B | 26.53 | ― | 0.23% | 9.09% | 9.61% | |
69 Neutral | ₹4.46T | 37.00 | ― | 0.86% | 11.41% | 16.62% | |
66 Neutral | ₹626.09B | 29.13 | ― | 1.01% | 13.36% | -5.66% | |
63 Neutral | ₹1.87T | 75.95 | ― | 0.30% | 32.85% | 8.94% | |
59 Neutral | ₹1.05T | 51.42 | ― | 0.04% | 13.75% | 6.23% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:ALKEM
Alkem Laboratories Ltd.
5,236.40
-170.41
-3.15%
IN:AUROPHARMA
Aurobindo Pharma Ltd
1,703.00
615.90
56.66%
IN:DRREDDY
Dr. Reddy's Laboratories Ltd.
1,250.00
11.60
0.94%
IN:MANKIND
Mankind Pharma Ltd.
2,545.00
106.35
4.36%
IN:SUNPHARMA
Sun Pharmaceutical Industries Limited
1,860.00
238.66
14.72%
IN:TORNTPHARM
Torrent Pharmaceuticals Ltd
4,915.15
1,383.28
39.17%
Alkem Laboratories Ltd. Corporate Events
Alkem Subsidiary Advances Majority-Stake Acquisition of Switzerland’s Occlutech
Jun 29, 2026
Alkem Laboratories said its wholly owned subsidiary Alkem Medtech has moved forward with its planned acquisition of a majority stake in Swiss-based Occlutech Holding AG, targeting at least 51% and up to 55% of the company’s equity share capi...
Alkem Laboratories Closes Trading Window Ahead of Quarterly Results
Jun 24, 2026
Alkem Laboratories Ltd. has announced that its trading window for dealing in the company’s securities will be closed from June 29, 2026. The window will reopen 48 hours after the company’s financial results for the quarter ended June 3...
Alkem Labs Schedules One-on-One Analyst Meet in Mumbai
Jun 10, 2026
Alkem Laboratories has announced that it will hold an in-person one-on-one meeting with Haitong Securities India Private Limited on June 16, 2026, in Mumbai. The interaction is aimed at engaging with analysts and institutional investors, underscor...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.