Alkem Laboratories Ltd. (ALKEM) AI Stock Analysis

• Market Cap: ₹615.84B
• Dividend Yield: 0.83%
• Average Volume (3M): 3.76K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.64
• Revenue Growth: 4.49%
• EPS Growth: 11.22%
• Country: IN
• Employees: 17,432
• Sector: Healthcare
• Sector Strength: 41
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 55.60
• Shares Outstanding: 119,565,000
• 10 Day Avg. Volume: 5,662
• 30 Day Avg. Volume: 3,761
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹5,586.71
• Price Target Upside: 3.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 72 Outperform
• Price Target: ₹5,717.00 ▲(6.05% 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.

Alkem Laboratories Ltd. Business Overview & Revenue Model

Company Description

Alkem Laboratories Ltd. (ALKEM) is a leading Indian pharmaceutical company engaged in the development, manufacture, and marketing of pharmaceutical formulations and active pharmaceutical ingredients (APIs). The company operates in the healthcare sector, offering a wide range of products across various therapeutic segments, including anti-infectives, gastroenterology, pain management, and vitamins/minerals/nutrients. Alkem is known for its strong presence in both domestic and international markets, with a comprehensive portfolio of branded generics and generic drugs.

How the Company Makes Money

Alkem Laboratories Ltd. generates revenue primarily through the sale of its pharmaceutical products, which include branded generics, generic drugs, and APIs. The company's revenue streams are driven by its wide-ranging product portfolio across multiple therapeutic areas. In the domestic market, Alkem earns money by marketing and distributing its branded generic formulations, leveraging a robust sales network and strong brand recognition. Internationally, the company expands its revenue through the export of generic drugs and APIs to various countries, benefiting from its manufacturing capabilities and regulatory approvals in key markets. Alkem also invests in research and development to innovate and expand its product offerings, which supports its long-term revenue growth. Strategic partnerships with healthcare providers and distribution agreements further enhance its market reach and financial performance.

Alkem Laboratories Ltd. Financial Statement Overview

Summary

Alkem Laboratories demonstrates robust financial health with strong revenue growth, efficient cost management, and solid profitability. A low debt-to-equity ratio and strong equity base highlight financial stability, while cash flows remain sufficient to support operations despite a decline.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	129.65B	125.67B	114.40B	105.12B	88.23B
Gross Profit	82.00B	51.29B	64.20B	34.90B	29.73B
EBITDA	30.06B	24.20B	17.23B	21.91B	21.76B
Net Income	21.65B	17.96B	9.84B	16.46B	15.85B
Balance Sheet
Total Assets	176.91B	155.75B	137.57B	140.69B	115.19B
Cash, Cash Equivalents and Short-Term Investments	45.81B	42.70B	11.43B	13.13B	17.54B
Total Debt	13.81B	14.18B	13.97B	26.68B	17.92B
Total Liabilities	52.57B	48.60B	43.22B	52.22B	39.61B
Stockholders Equity	119.85B	103.12B	90.45B	86.38B	73.77B
Cash Flow
Free Cash Flow	12.37B	16.89B	14.50B	7.72B	10.70B
Operating Cash Flow	19.13B	19.48B	16.82B	11.11B	12.65B
Investing Cash Flow	-12.99B	-10.09B	1.13B	-14.35B	-9.99B
Financing Cash Flow	-8.11B	-11.45B	-17.61B	3.80B	-2.72B

Alkem Laboratories Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5390.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ALKEM, the sentiment is Positive. The current price of 5390.9 is above the 20-day moving average (MA) of 4985.78, above the 50-day MA of 4899.28, and above the 200-day MA of 5098.06, indicating a bullish trend. The MACD of 40.03 indicates Negative momentum. The RSI at 71.63 is Negative, neither overbought nor oversold. The STOCH value of 71.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ALKEM.

Alkem Laboratories Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABBOTINDIA	76 Outperform	₹687.25B	47.32		1.44%	9.58%	17.75%
CAPLIPOINT	75 Outperform	₹159.32B	28.19		0.25%	13.14%	18.21%
ALKEM	72 Outperform	₹615.84B	26.96		0.83%	4.49%	11.22%
AUROPHARMA	71 Outperform	₹614.49B	18.12		0.38%	7.76%	-2.83%
GLAXO	65 Neutral	₹438.60B	46.16		2.01%	6.65%	48.47%
GLENMARK	62 Neutral	₹580.50B	55.43		0.12%	9.39%	―
Sector *	51 Neutral	$7.42B	-0.36	-44.95%	2.27%	22.89%	-2.16%

Alkem Laboratories Ltd. Corporate Events

Alkem Laboratories Reports Strong Q1 FY26 Results with 11% Revenue Growth

Alkem Laboratories Ltd. reported an 11% increase in revenue and a 22% rise in net profit for Q1 FY26, driven by strong growth in both domestic and international sales. The company achieved a higher EBITDA margin and outperformed the Indian Pharmaceutical Market in terms of growth, reflecting its strategic focus on value-accretive products and markets.

Alkem Laboratories to Reopen Trading Window Post Financial Results Disclosure

Alkem Laboratories Ltd. has announced the reopening of its trading window on August 18, 2025, following the communication of its financial results for the quarter ending June 30, 2025, to the stock exchanges. This move marks the end of the trading window closure that was in place since June 29, 2025, in compliance with SEBI regulations. The reopening of the trading window is a routine procedure that allows stakeholders to resume trading activities, reflecting the company’s adherence to regulatory requirements and transparency in financial disclosures.

Alkem Laboratories to Engage with Investors at Equirus Conference

Alkem Laboratories Ltd. has announced its participation in the Equirus Annual India Conference, scheduled for August 20, 2025, in Mumbai. The meeting will be an in-person, one-on-one session with analysts and institutional investors, indicating the company’s proactive engagement with stakeholders to discuss its strategic direction and performance.