ALKEM LABORATORIES LTD. Fair Value
ALKEM · Healthcare · Current price ₹5,300
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹1,551 | 19% ROE fading to 12% over ~10 yrs, on ₹1156 book |
| Relative P/E | ₹5,837 | EPS × 30.3 peer-median P/E |
| Graham floor | ₹2,238 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹5,979 | Street consensus 12-month target price |
Is ALKEM LABORATORIES LTD. undervalued?
DocStoX estimates the fair value of ALKEM LABORATORIES LTD. at ₹3,423 per share, versus the current market price of ₹5,300. That puts the stock about -35.4% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹1,551), Relative P/E (₹5,837), Graham floor (₹2,238), Analyst target (₹5,979). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.
Bear, base and bull scenarios
Our scenarios span ₹1,551 (bear) to ₹3,423 (base) to ₹5,979 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on ALKEM LABORATORIES LTD.
DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.