Alkem LaboratoriesNSE:ALKEM -0.06%96 Gross Margin % is 65.37% as of Mar. 2026, which is 11% above its 10-year median of 59.08. GuruFocus rates NSE:ALKEM with a GF Score™ of 96/100 and a GF Value™ of ₹6,066.47 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 935 Drug Manufacturers companies, Alkem Laboratories ranks better than 76.79% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Alkem Laboratories had a gross margin of 65.37% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Alkem Laboratories Gross Margin % Related Terms
Alkem Laboratories Gross Margin % Historical Data
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The historical data trend for Alkem Laboratories's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Drug Manufacturers - Specialty & Generic subindustry, Alkem Laboratories's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alkem Laboratories Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Alkem Laboratories's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Alkem Laboratories's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Alkem Laboratories (NSE:ALKEM) has a Gross Margin % of 65.37% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Alkem Laboratories and its competitors. This is 11% above median its historical median of 59.08. Over the past decade, Alkem Laboratories' Gross Margin % has ranged from 56.45 to 65.38. According to the industry distribution chart, Alkem Laboratories ranks #217 out of 935 companies in the Drug Manufacturers industry, placing it in the top 23.2%.
Is Alkem Laboratories' Gross Margin % too high?
Alkem Laboratories' current Gross Margin % of 65.37% is 11% above median its 10-year median of 59.08. Over the past 10 years, this metric has ranged from a low of 56.45 to a high of 65.38. The Drug Manufacturers industry median Gross Margin % is 48.54. Alkem Laboratories' value of 65.37% is 34.7% above this industry median. Based on the distribution chart, Alkem Laboratories ranks #217 out of 935 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Alkem Laboratories has a GF Score™ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alkem Laboratories' Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Alkem Laboratories ranks #217 out of 935 companies for Gross Margin %. This places Alkem Laboratories in the top 23% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.54. Alkem Laboratories' value of 65.37% is 34.7% above this benchmark. Historically, Alkem Laboratories' own Gross Margin % has ranged from 56.45 to 65.38 over the past decade. While the company's 10-year median is 59.08 vs. the industry median of 48.54, Alkem Laboratories has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, based on 935 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alkem Laboratories's current Gross Margin % of 65.37% is 34.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Alkem Laboratories and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alkem Laboratories's current Gross Margin % is 65.37%, which is 11% above median its own 10-year median of 59.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alkem Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Alkem Laboratories (NSE:ALKEM) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹6,066.47, compared to a current price of ₹5,425.00 — trading 10.6% below its estimated fair value. The current Gross Margin % is 65.37%, which is 11% above median its 10-year median of 59.08 and 34.7% above the Drug Manufacturers industry median of 48.54. Alkem Laboratories' overall GF Score™ is 96/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Alkem Laboratories (NSE:ALKEM), the current Gross Margin % is 65.37% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alkem Laboratories (NSE:ALKEM) Overvalued in 2026?
Based on GuruFocus' analysis, Alkem Laboratories stock appears to be undervalued.
The current stock price of ₹5,425.00 is trading 10.6% below its estimated GF Value™ of ₹6,066.47.
GuruFocus considers Alkem Laboratories to be Modestly Undervalued.
Key valuation signals for NSE:ALKEM:
Gross Margin %: 65.37% (11% above median its 10-year median of 59.08)
GF Value™: ₹6,066.47 vs. price of ₹5,425.00 (10.6% below fair value)
Industry Position: 34.7% above the Drug Manufacturers median (#217 of 935)
No single metric tells the full story. See the NSE:ALKEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alkem Laboratories Ltd is an Indian pharmaceutical company engaged in the development, manufacture, and sale of pharmaceutical and nutraceutical products. The company produces branded generics, generic drugs, active pharmaceutical ingredients (APIs) and nutraceuticals in acute and chronic therapeutic areas, such as anti-infective, pain and analgesics, vitamins/minerals/nutrients, cardiac and Diabetology, Gynecology, neuro/central nervous system, dermatology, anti-diabetes, anti-osteoporosis, cardiovascular, and muscle relaxants, which are marketed in Indian and International markets. It operates through the pharmaceutical business segment.
96GF Score
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