Alkem Laboratories Limited

BSE:539523 Stock Report

Market Cap: ₹659.4b

Alkem Laboratories Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 (₹5508.7) is trading above our estimate of fair value (₹2729.84)

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 Ratio31.1x
Earnings₹21.22b
Market Cap₹659.42b

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 Average30.6x
AUROPHARMA Aurobindo Pharma
20x13.9%₹717.5b
500488 Abbott India
44.9x11.0%₹577.1b
500257 Lupin
35.3x16.5%₹928.3b
ZYDUSLIFE Zydus Lifesciences
22.2x0.6%₹950.6b
539523 Alkem Laboratories
31.1x10.6%₹659.4b

Price-To-Earnings vs Peers: 539523 is expensive based on its Price-To-Earnings Ratio (31.1x) compared to the peer average (30.6x).

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
1.6xn/aUS$72.79m
524652 Ind-Swift
2xn/aUS$13.15m
No more companies available in this PE range
539523 31.1xIndustry Avg. 32.4xNo. of Companies18PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 539523 is good value based on its Price-To-Earnings Ratio (31.1x) compared to the Indian Pharmaceuticals industry average (32.7x).

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 Ratio31.1x
Fair PE Ratio40.2x

Price-To-Earnings vs Fair Ratio: 539523 is good value based on its Price-To-Earnings Ratio (31.1x) 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₹5,508.70
₹5,775.29
+4.8%
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₹2,700.00n/a22
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
Nov ’23₹3,226.80
₹3,283.05
+1.7%
11.1%₹3,850.00₹2,475.00₹3,721.4022

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

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