Alkem Laboratories Ltd
Ticker: ALKEM
Decent
72/100
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Investing Reference
Price
5506.50
Market Cap
65838.47
Debt/Equity
0.1111
ROE %
18.710
PB
5.2952
Promoter %
51.197
Pledge %
0.000
1Y Rev Growth %
3.697
5Y Rev Growth %
9.759
NP Margin %
16.090
NP Margin 5Y Avg %
14.184
Trading Reference
1M Return %
1.721
6M Return %
8.481
1Y Return %
-4.719
% Away 52W High
8.216
% Away 52W Low
22.594
Daily Volume
178327
Investment Verdict
Hold
Score 61/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 45/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
Summary
Alkem Laboratories Ltd shows strong growth potential driven by robust product pipeline and market expansion.
✅ Positives
- Strong revenue growth in domestic market
- Diverse portfolio with high-margin products
- Strategic acquisitions enhancing market presence
⚠️ Negatives
- Regulatory challenges in international markets
- Rising raw material costs impacting margins
- Intense competition in the pharmaceutical sector
Verdict
Alkem is well-positioned for future growth.
Recommendation: Consider buying on dips.
Upside Probability: 25% | Downside Probability: 15%
Last generated: 29/10/2025
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Business Overview
Alkem Laboratories Ltd is a leading Indian pharmaceutical company dedicated to improving healthcare through innovative products. With a robust portfolio spanning generics, branded formulations, and over-the-counter medicines, Alkem serves both domestic and international markets. Its commitment to quality and research-driven approach ensures that patients receive effective treatments. The company focuses on chronic and acute therapeutic segments, making it a trusted choice for healthcare professionals and patients alike.
- Established leader in the Indian pharmaceutical sector
- Wide range of high-quality medications
- Strong emphasis on research and development
- Global presence with a focus on emerging markets
- Dedicated to improving patient health outcomes
Investment Thesis
Alkem Laboratories Ltd stands out as a compelling investment due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. With a solid track record and strategic initiatives, Alkem is well-positioned to capitalize on market opportunities.
- Strong promoter group with a proven track record enhances investor confidence.
- Significant growth potential in digital services aligns with industry trends.
- Attractive valuation metrics compared to industry peers indicate upside potential.
- Robust product portfolio and R&D capabilities support long-term growth.
- Focus on expanding international markets diversifies revenue streams.
Opportunity vs Risk
Opportunities
- Strong growth in generic drugs
- Expanding international market presence
- Robust R&D pipeline
- Strategic acquisitions potential
Risks ⚠️
- Regulatory challenges in India
- Intense competition in pharmaceuticals
- Currency fluctuations impact
- R&D failures may arise
Peer Perspective
Alkem Laboratories Ltd trades at a discount compared to peers like Sun Pharma and Cipla, reflecting concerns over margin stability; a sustained improvement in operational efficiency could trigger a rerating in its valuation.
Future Outlook
Alkem Laboratories Ltd is well-positioned for growth, driven by its robust pipeline and expanding market presence. Successful execution of its strategies and effective cost control will be key to unlocking its full potential.
AI FAQs for Retail Users
- Q: What does Alkem Laboratories do?A: Alkem Laboratories is a pharmaceutical company that develops and manufactures generic and branded medicines.
- Q: Is Alkem Laboratories listed on stock exchanges?A: Yes, Alkem Laboratories is listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India.
- Q: What are the key markets for Alkem?A: Alkem primarily operates in India and the United States, focusing on various therapeutic segments.
- Q: How can I invest in Alkem Laboratories?A: You can invest in Alkem shares through a stockbroker or an online trading platform.
- Q: What should I consider before investing in Alkem?A: Consider the company's financial health, market position, and industry trends before making an investment.
📊 Stock Investment Checklist (100 Points)
Alkem Laboratories Ltd • Updated: 2025-09-16 19:24:01
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10BusinessHighPharmaceutical sector is essential and has growth potential, but competition is high.
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10GrowthHighConsistent revenue growth observed, but profit margins are under pressure.
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10ProfitabilityHighROE and ROCE are decent, but OCF is fluctuating.
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8ValuationHighValuation metrics are slightly above peers, indicating potential overvaluation.
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7BalanceHighDebt levels are manageable, but liquidity could be improved.
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9GovernanceHighPromoter holding is strong, but some pledging exists.
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6DriversGoodGrowth drivers are present, but execution risks are notable.
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5TechnicalsGoodMarket sentiment is mixed, with low liquidity.
Final Score & Verdict
Score 72 / 100
• Decent
Alkem Laboratories Ltd shows decent potential with a solid business model and growth prospects, but faces challenges in profitability and valuation metrics.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 80/100
- Governance: 65/100
- Market Confidence: 72/100