Alkem Laboratories Ltd. (ALKEM) AI Stock Analysis

• Market Cap: ₹671.86B
• Dividend Yield: 0.8%
• Average Volume (3M): 9.84K
• Price to Earnings (P/E): 28.3
• Beta (1Y): 0.62
• Revenue Growth: 9.32%
• EPS Growth: 11.25%
• Country: IN
• Employees: 17,432
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 63.99
• Shares Outstanding: 119,565,000
• 10 Day Avg. Volume: 12,022
• 30 Day Avg. Volume: 9,843
• PEG Ratio: 1.30
• Price to Book (P/B): 4.82
• Price to Sales (P/S): 4.46
• P/FCF Ratio: 46.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹5,625.00
• Price Target Upside: 0.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹5,717.00 ▲(2.20% Upside)

Alkem Laboratories demonstrates strong financial performance with robust revenue growth and profitability, which is the most significant factor in its score. Technical analysis supports a positive trend, although valuation metrics suggest the stock may be overvalued. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Revenue Growth

The 11% revenue growth in Q1 FY26 demonstrates Alkem's strong market position and effective expansion strategies in both domestic and international markets.

Profitability

The significant rise in net profit and improved EBITDA margin highlight Alkem's operational efficiency and ability to capitalize on value-accretive products.

Financial Stability

Alkem's low leverage and strong equity base provide financial stability, enhancing its ability to invest in growth opportunities without excessive risk.

Negative Factors

Declining Cash Flow

The decline in free cash flow, despite remaining positive, could limit Alkem's capacity to fund new projects or manage unexpected expenses, impacting long-term growth.

Cash Flow Efficiency

While cash generation is efficient, the ratio indicates potential pressure on liquidity, which may affect Alkem's ability to sustain operations and invest in R&D.

Free Cash Flow Growth

The decline in free cash flow growth suggests challenges in maintaining cash reserves, which could hinder Alkem's strategic investments and long-term financial health.

Alkem Laboratories Ltd. Business Overview & Revenue Model

Company Description

Alkem Laboratories Limited, a pharmaceutical company, engages in the development, manufacture, and sale of pharmaceutical and nutraceutical products in India and internationally. The company offers branded generics, generic drugs, active pharmaceutical ingredients, biosimilars, and nutraceuticals in acute and chronic therapeutic areas comprising anti-infective, dermatology, cardiac, respiratory, gastro-intestinal, central nervous system, oncology, urology, and gynaecology, as well as vitamins, minerals, and nutrients; and pain analgesic, anti-diabetic, and neurology products. It also provides pregnancy detection kits and condoms. The company was incorporated in 1973 and is headquartered in Mumbai, India.

How the Company Makes Money

Alkem Laboratories generates revenue through multiple key streams, primarily from the sale of pharmaceutical formulations in domestic and international markets. The company achieves significant earnings from its extensive generic product line, which is marketed under both its brand names and as unbranded generics. Additionally, Alkem has established partnerships with various healthcare providers and organizations, enabling it to expand its market reach. The company also invests in research and development to enhance its product offerings and pipeline, which contributes to long-term revenue growth. Furthermore, Alkem's robust distribution network and strategic marketing initiatives bolster its sales, while its presence in emerging markets helps diversify its revenue sources.

Alkem Laboratories Ltd. Financial Statement Overview

Summary

Alkem Laboratories exhibits robust financial health with strong revenue growth, efficient cost management, and solid profitability. The balance sheet is well-balanced with low leverage, and cash flows, although declining, are sufficient to support operations.

Income Statement

Alkem Laboratories has shown strong revenue growth, with a 3.16% increase from 2024 to 2025. The gross profit margin stands at 63.25%, indicating efficient cost management. Net profit margin is robust at 16.70%, suggesting solid profitability. EBITDA margin has improved to 23.18%, showcasing operational efficiency. Overall, the income statement reflects a healthy growth trajectory and strong profitability.

Balance Sheet

The company's balance sheet is solid, with a debt-to-equity ratio of 0.12, indicating low leverage and financial stability. The equity ratio is 67.73%, reflecting a strong equity base. Return on equity is impressive at 18.07%, highlighting effective use of shareholders' capital. The balance sheet presents a stable financial position with manageable debt levels and strong equity.

Cash Flow

Free cash flow has decreased from the previous year, but remains positive, with a free cash flow to net income ratio of 0.57. The operating cash flow to net income ratio is 0.88, indicating efficient cash generation relative to net income. Despite a decline in free cash flow growth, cash flow remains stable, supporting overall financial health.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	133.04B	129.65B	125.67B	115.99B	106.34B	88.23B
Gross Profit	77.16B	80.39B	46.39B	65.79B	35.95B	51.42B
EBITDA	31.65B	30.06B	24.20B	17.23B	21.91B	21.76B
Net Income	22.85B	21.65B	17.96B	9.84B	16.46B	15.85B
Balance Sheet
Total Assets	0.00	176.91B	155.75B	137.57B	140.69B	115.19B
Cash, Cash Equivalents and Short-Term Investments	41.05B	37.78B	42.70B	11.43B	13.13B	17.54B
Total Debt	0.00	13.81B	14.18B	13.97B	26.68B	17.92B
Total Liabilities	-124.34B	52.57B	48.60B	43.22B	52.22B	39.61B
Stockholders Equity	124.34B	119.85B	103.12B	90.45B	86.38B	73.77B
Cash Flow
Free Cash Flow	0.00	12.37B	16.89B	14.50B	7.72B	10.70B
Operating Cash Flow	0.00	19.13B	19.48B	16.82B	11.11B	12.65B
Investing Cash Flow	0.00	-12.99B	-10.09B	1.13B	-14.35B	-9.99B
Financing Cash Flow	0.00	-8.11B	-11.45B	-17.61B	3.80B	-2.72B

Alkem Laboratories Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5593.95
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ALKEM, the sentiment is Neutral. The current price of 5593.95 is below the 20-day moving average (MA) of 5633.07, below the 50-day MA of 5621.68, and above the 200-day MA of 5207.90, indicating a neutral trend. The MACD of -12.72 indicates Positive momentum. The RSI at 47.57 is Neutral, neither overbought nor oversold. The STOCH value of 52.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:ALKEM.

Alkem Laboratories Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUROPHARMA	74 Outperform	₹711.05B	20.65	―	0.33%	7.33%	-3.79%
ALKEM	72 Outperform	₹671.86B	28.33	―	0.80%	9.32%	11.25%
CAPLIPOINT	69 Neutral	₹148.37B	25.56	―	0.31%	11.41%	19.22%
ABBOTINDIA	67 Neutral	₹595.08B	39.91	―	1.68%	10.69%	17.46%
GLAXO	63 Neutral	₹427.46B	44.31	―	2.14%	4.17%	41.51%
GLENMARK	53 Neutral	₹575.29B	57.19	―	0.24%	30.27%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Alkem Laboratories Ltd. Corporate Events

Alkem Laboratories Schedules Investor Meeting for Strategic Insights

Alkem Laboratories Ltd. has announced an upcoming one-on-one meeting with analysts and institutional investors as part of the Citi India Pharma & Healthcare Tour 2025, scheduled for November 28, 2025, in Mumbai. This engagement is expected to provide insights into the company’s strategic direction and operational performance, potentially influencing investor perceptions and market positioning.

Alkem Laboratories’ Sikkim Facility Passes Armenian GMP Inspection

Alkem Laboratories Ltd. announced that a recent Good Manufacturing Practice (GMP) inspection by the Ministry of Health, Armenia, at its Sikkim, India facility concluded without any critical or major observations. This successful inspection underscores Alkem’s commitment to maintaining high manufacturing standards, potentially enhancing its reputation and reliability in the pharmaceutical industry.

Alkem Laboratories Cancels Analyst Meeting Scheduled for September 2025

Alkem Laboratories Ltd. announced the cancellation of a scheduled Analyst/Institutional Investor Meeting that was to take place on September 9, 2025, in Mumbai. The cancellation of this meeting, which was intended to be a one-on-one session with FIL India Business & Research Services Pvt Ltd, may affect the company’s communication with investors and analysts, potentially influencing stakeholder perceptions and market positioning.