Alkem Laboratories Ltd.
NSE: ALKEMAlkem Laboratories Ltd.: A 30-second snapshot
Alkem Laboratories (₹5,576.50) is a mid-to-large Indian pharma company trading above both its 50-DMA and 200-DMA with a 13.83% 1-year price gain and an RSI of 55.66. The near-term backdrop is materially complicated by a concurrent CEO resignation and a USFDA 7-observation warning at its Daman plant, while fundamental profitability growth (earnings CAGR 1.6% vs revenue CAGR 10.7% over 5 years) has lagged top-line expansion.
P/E
27.6
Forward P/E
28.8
ROE
—
Debt / Equity
17.06
Profit Margin
+16.6%
Div. Yield
+0.9%
5Y ROE > 15%
3/5
5Y FCF > 0
4/5
Quality
45/100
News
8 headlines · 1 positive · 7 negative
USFDA Flags Compliance Gaps at Alkem's Daman Plant, Issues 7 Observations - Medical Dialogues
Medical Dialogues
Alkem Laboratories Receives Rs 333.38 Crore Tax Demand for AY 2023-24, Plans to Appeal - Studycafe
Studycafe
Alkem Labs shares fall nearly 5% after CEO resignation announcement - Moneycontrol.com
Moneycontrol.com
Alkem Labs CEO Vikas Gupta Exits Company - NDTV Profit
NDTV Profit
Alkem Labs CEO Dr. Vikas Gupta resigns; stock falls nearly 3% - BusinessLine
BusinessLine
Recent context
- ·USFDA inspection of the Daman facility concluded around 2026-05-02 with 7 observations issued; Alkem's US revenue contribution makes this a watch item for upcoming quarterly filings.
- ·CEO resignation was announced 2026-04-24 and triggered a 3–5% intraday share move; the company has not publicly named a permanent successor based on available news coverage.
- ·A ₹333.38 crore income-tax demand for AY 2023-24 has been disclosed and is being contested in appeal — outcome and timeline remain pending.
Strengths
- +PE of 27.6x is below the Pharma peer median (Sun Pharma 41.3x, Cipla 29.8x), and trades below Apollo Hospitals (64.6x) and Max Healthcare (72.5x), the two richest-valued peers in the sector comparison set.
- +FCF was positive in 4 of 5 years of available data, and the debt trend is classified as falling — D/E of 17.06 notwithstanding, the directional trajectory is improving.
- +1-year price gain of 13.83% with only a 5.26% drawdown from the 52-week high; stock is above both short-term (50-DMA ₹5,430.35) and long-term (200-DMA ₹5,454.66) moving averages.
- +Revenue has compounded at 10.7% over 5 years, and the company maintains a 16.64% net profit margin with a dividend yield of 0.91%, suggesting operational scale with ongoing shareholder returns.
Weaknesses
- −USFDA issued 7 observations at the Daman plant (reported 2026-05-04) — a high-severity regulatory event that can affect US export approvals and revenue from the US generics market.
- −CEO Dr. Vikas Gupta resigned as of 2026-04-24, coinciding with the USFDA inspection period. The dual disruption of senior leadership and regulatory scrutiny creates compounded uncertainty around operational continuity.
- −5-year earnings CAGR of 1.6% versus revenue CAGR of 10.7% reflects significant erosion of operating leverage over the period; the divergence raises questions about cost structure and pricing power in key markets.
- −Quality score of 43 of 100 places ALKEM 3rd of 6 in the sector peer set, below Max Healthcare (54) and Sun Pharma (50); analyst rating data is unavailable, limiting the ability to assess consensus views on current valuation.
Open questions
- ?Does the USFDA 7-observation count at the Daman plant signal isolated process gaps, or does it reflect a broader compliance posture across Alkem's manufacturing network?
- ?How much of Alkem's revenue derives from the US generics market, and what portion of that revenue flows through the Daman facility specifically?
- ?Is the sustained gap between 10.7% revenue CAGR and 1.6% earnings CAGR explained by one-time cost events, structural pricing pressure, or a deliberate reinvestment phase — and has that trend reversed in recent quarters?
- ?Who is leading Alkem operationally in the CEO transition period, and what is the board's stated timeline for appointing a permanent successor?
Peer comparison: Pharma
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ALKEM | Alkem Laboratories Ltd.You're viewing | 27.6 | — | 43 |
| Industry avg | across 5 peers | 47.0 | +11.8% | 37 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 72.5 | — | 54 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 41.3 | — | 50 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 64.6 | — | 42 |
| CIPLA | Cipla Ltd. | 29.8 | +11.7% | 24 |
| DRREDDY | Dr. Reddy's Laboratories Ltd. | 26.6 | +11.8% | 17 |
Technical state
Current price
₹5,576.50
SMA 50
₹5,430.35
SMA 200
₹5,454.66
RSI (14)
55.7 (neutral)
From 52w high
-5.3%
1Y return
+13.8%
3M return
-3.3%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highUSFDA issued 7 observations at Alkem's Daman manufacturing plant following a multi-day inspection concluded around 2026-05-02. Regulatory observations of this scale can affect export eligibility and US market access — a material revenue channel for large Indian pharma companies.
- highCEO Dr. Vikas Gupta resigned as of 2026-04-24, triggering an intraday share decline of approximately 3–5%. Leadership transition at the CEO level concurrent with an active USFDA inspection adds compounded governance and operational uncertainty.
- medium5-year earnings CAGR of 1.6% is sharply below the 5-year revenue CAGR of 10.7%, indicating significant margin compression or cost-base expansion over the period. Profit margin of 16.64% must be assessed in light of this revenue-earnings divergence.
- mediumQuality score of 43 of 100 ranks 3rd of 6 peers in the Pharma sector. ROE data is unavailable; only 3 of tracked years showed ROE above 15%, limiting return-quality assessment. FCF was positive in 4 of 5 available years and debt trend is falling.
- mediumTax demand of ₹333.38 crore for AY 2023-24 is contested and under appeal. The demand represents a contingent liability whose resolution timeline and outcome are uncertain.
Cross-section contradictions
- Stock is trading above both the 50-DMA (₹5,430.35) and 200-DMA (₹5,454.66) with a 13.83% 1-year gain and only a 5.26% drawdown from the 52-week high, yet 7 of 8 recent news items are negative — including an active USFDA regulatory action and a CEO resignation. Price performance has not visibly reflected these material concurrent events.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days