ALKEM LABORATORIES LTD. Valuation
ALKEM · Healthcare · Current price ₹5,563
Is ALKEM LABORATORIES LTD. undervalued?
DocStoX estimates the fair value of ALKEM LABORATORIES LTD. at ₹2,870 per share, versus the current market price of ₹5,563. That puts the stock about -48.4% 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 3 independent methods: Residual income (₹1,562), Relative P/E (₹5,837), Graham floor (₹2,238). 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 ₹1,562 (bear) to ₹2,870 (base) to ₹5,837 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
Valuation multiples
ALKEM LABORATORIES LTD. trades at a P/E of 28.9x and a P/B of 4.8x, with a dividend yield of 0.8%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.
Understand the ratios
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.