Alkem Laboratories Limited

BSE:539523 Stock Report

Market Cap: ₹673.6b

Alkem Laboratories Valuation

Is 539523 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 539523 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 539523 (₹5635.9) is trading above our estimate of fair value (₹2734.01)

Significantly Below Fair Value: 539523 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 539523?

Key metric: As 539523 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 539523. This is calculated by dividing 539523's market cap by their current earnings.
What is 539523's PE Ratio?
PE Ratio31.7x
Earnings₹21.22b
Market Cap₹673.62b

Price to Earnings Ratio vs Peers

How does 539523's PE Ratio compare to its peers?

The above table shows the PE ratio for 539523 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.6x
500488 Abbott India
49.2x10.9%₹632.1b
AUROPHARMA Aurobindo Pharma
21.6x13.9%₹775.1b
ZYDUSLIFE Zydus Lifesciences
22.9x0.7%₹977.8b
500257 Lupin
40.8x16.4%₹1.1t
539523 Alkem Laboratories
31.7x10.6%₹673.6b

Price-To-Earnings vs Peers: 539523 is good value based on its Price-To-Earnings Ratio (31.7x) compared to the peer average (33.6x).

Price to Earnings Ratio vs Industry

How does 539523's PE Ratio compare vs other companies in the IN Pharmaceuticals Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
INDSWFTLAB Ind-Swift Laboratories
1.7xn/aUS$74.95m
524652 Ind-Swift
3.2xn/aUS$20.79m
No more companies available in this PE range
539523 31.7xIndustry Avg. 34.9xNo. of Companies20PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 539523 is good value based on its Price-To-Earnings Ratio (31.7x) compared to the Indian Pharmaceuticals industry average (34.9x).

Price to Earnings Ratio vs Fair Ratio

What is 539523's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

539523 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.7x
Fair PE Ratio40.2x

Price-To-Earnings vs Fair Ratio: 539523 is good value based on its Price-To-Earnings Ratio (31.7x) compared to the estimated Fair Price-To-Earnings Ratio (40.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 539523 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹5,635.90
₹5,775.29
+2.5%
13.0%₹7,225.00₹4,330.00n/a21
Dec ’25₹5,641.30
₹5,775.29
+2.4%
13.0%₹7,225.00₹4,330.00n/a21
Nov ’25₹5,807.75
₹5,721.90
-1.5%
14.5%₹7,225.00₹3,960.00n/a21
Oct ’25₹6,151.60
₹5,583.24
-9.2%
14.3%₹6,833.00₹3,960.00n/a21
Sep ’25₹6,167.80
₹5,543.95
-10.1%
13.6%₹6,833.00₹3,960.00n/a21
Aug ’25₹5,267.85
₹5,213.19
-1.0%
14.0%₹6,891.00₹3,600.00n/a21
Jul ’25₹4,956.50
₹5,194.86
+4.8%
14.1%₹6,891.00₹3,600.00n/a21
Jun ’25₹4,811.95
₹5,152.18
+7.1%
14.1%₹6,891.00₹3,600.00n/a22
May ’25₹4,831.45
₹5,235.45
+8.4%
13.8%₹6,780.00₹3,600.00n/a22
Apr ’25₹5,004.65
₹5,222.95
+4.4%
14.0%₹6,780.00₹3,600.00n/a22
Mar ’25₹5,115.75
₹5,234.32
+2.3%
14.1%₹6,780.00₹3,600.00n/a22
Feb ’25₹4,848.30
₹4,299.74
-11.3%
15.3%₹6,295.00₹2,700.00n/a23
Jan ’25₹5,123.15
₹4,131.26
-19.4%
17.0%₹6,295.00₹2,700.00n/a23
Dec ’24₹4,641.40
₹4,032.91
-13.1%
13.4%₹4,980.00₹2,700.00₹5,641.3022
Nov ’24₹3,721.40
₹3,681.00
-1.1%
11.0%₹4,850.00₹2,700.00₹5,807.7522
Oct ’24₹3,607.65
₹3,690.81
+2.3%
13.0%₹4,850.00₹2,685.00₹6,151.6021
Sep ’24₹3,614.90
₹3,673.05
+1.6%
13.0%₹4,850.00₹2,685.00₹6,167.8022
Aug ’24₹3,983.15
₹3,359.41
-15.7%
13.0%₹4,350.00₹2,685.00₹5,267.8522
Jul ’24₹3,512.30
₹3,314.68
-5.6%
11.1%₹3,900.00₹2,685.00₹4,956.5022
Jun ’24₹3,378.55
₹3,310.36
-2.0%
11.0%₹3,900.00₹2,685.00₹4,811.9522
May ’24₹3,513.50
₹3,394.52
-3.4%
12.6%₹4,100.00₹2,600.00₹4,831.4521
Apr ’24₹3,397.85
₹3,375.00
-0.7%
11.9%₹3,900.00₹2,600.00₹5,004.6521
Mar ’24₹3,117.15
₹3,375.00
+8.3%
11.9%₹3,900.00₹2,600.00₹5,115.7521
Feb ’24₹3,033.10
₹3,211.81
+5.9%
12.4%₹3,795.00₹2,475.00₹4,848.3021
Jan ’24₹3,005.25
₹3,237.14
+7.7%
11.9%₹3,795.00₹2,475.00₹5,123.1521
Dec ’23₹3,128.90
₹3,239.04
+3.5%
11.4%₹3,795.00₹2,475.00₹4,641.4023

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/31 17:51
End of Day Share Price 2024/12/31 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Alkem Laboratories Limited is covered by 35 analysts. 22 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Prashant NairAmbit Capital
Shrikant AkolkarAngel Broking Private Limited
null nullAntique Stockbroking Ltd.