Alkem Laboratories Limited (ALKEM.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+35.0%

₹7,070.38

vs ₹5,237.50 price

Levered DCF

₹6,371.39

After debt service

Piotroski score

3 / 9

Weak

Altman Z-score

—

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	27.24×	26.7×	33.35×	41.26×	26.31×	20.89×	24.67×	27.47×
P/B	4.54×	4.82×	5.81×	4.49×	5.01×	4.49×	4.51×	3.84×
P/S	4.26×	4.52×	4.81×	3.55×	4.12×	3.79×	3.39×	2.88×
EV / EBITDA	18.9×	19.82×	25.17×	24.42×	20.89×	16.04×	18.68×	18.03×
Gross margin	65.4%	62.1%	59.5%	56.4%	59.3%	58.9%	57.8%	57.6%
Operating margin	17.8%	17.1%	16.0%	11.7%	16.8%	19.1%	15.5%	13.0%
Net margin	15.6%	16.9%	14.4%	8.6%	15.7%	18.2%	13.8%	10.5%
Current ratio	2.55×	2.76×	2.61×	2.35×	1.76×	1.92×	1.7×	1.92×
Debt / equity	0.15×	0.12×	0.14×	0.15×	0.31×	0.24×	0.27×	0.17×
Interest coverage	16.32×	20.85×	20.45×	12.43×	41.71×	28.37×	19.57×	19.91×
Dividend yield	1.0%	0.9%	0.9%	1.3%	1.0%	1.0%	1.6%	1.0%
Payout ratio	26.7%	23.3%	30.0%	53.8%	25.6%	21.1%	39.0%	28.7%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	16.7%	18.1%	17.4%	10.9%	19.1%	21.5%	18.3%	14.0%
Return on invested capital	12.5%	13.2%	13.9%	9.0%	13.6%	15.3%	14.0%	11.4%
Return on assets	11.0%	12.2%	11.5%	7.2%	11.7%	13.8%	11.3%	9.3%
Free cash flow yield	2.1%	2.1%	2.8%	3.6%	1.8%	3.2%	0.8%	1.2%
Earnings yield	3.7%	3.7%	3.0%	2.4%	3.8%	4.8%	4.1%	3.6%
Enterprise value	₹645.1B	₹588.9B	₹608.5B	₹417.3B	₹457.3B	₹347.3B	₹292.7B	₹215.9B
Net debt / EBITDA	0.53×	0.36×	0.4×	0.66×	1.11×	0.75×	0.93×	0.58×
Cash conversion cycle (days)	152	152	133	180	228	194	165	126