₹5,396: That's What Analysts Think Alkem Laboratories Limited (NSE:ALKEM) Is Worth After Its Latest Results

Last week, you might have seen that Alkem Laboratories Limited (NSE:ALKEM) released its quarterly result to the market. The early response was not positive, with shares down 7.9% to ₹4,704 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at ₹34b, statutory earnings beat expectations 3.4%, with Alkem Laboratories reporting profits of ₹52.34 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Alkem Laboratories after the latest results.

Check out our latest analysis for Alkem Laboratories

Taking into account the latest results, the most recent consensus for Alkem Laboratories from 22 analysts is for revenues of ₹143.6b in 2026. If met, it would imply a decent 13% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 14% to ₹205. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹147.4b and earnings per share (EPS) of ₹211 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

It'll come as no surprise then, to learn that the analysts have cut their price target 7.0% to ₹5,396. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Alkem Laboratories analyst has a price target of ₹6,642 per share, while the most pessimistic values it at ₹4,186. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Alkem Laboratories shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 9.9% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 11% per year. So although Alkem Laboratories is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Alkem Laboratories' future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Alkem Laboratories. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Alkem Laboratories analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Alkem Laboratories that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.