Alkem LaboratoriesNSE:ALKEM -0.06%96 Interest Coverage is 7.64 as of Mar. 2026, which is 62% below its 10-year median of 19.90. 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 684 Drug Manufacturers companies, Alkem Laboratories ranks better than 55.41% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Alkem Laboratories's
Operating Income
for the
three
months ended in Mar. 2026 was ₹4,116 Mil. Alkem Laboratories's Interest Expense for the
three
months ended in Mar. 2026 was ₹-539 Mil.
Alkem Laboratories's interest coverage for the quarter that ended in Mar. 2026 was 7.64.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Alkem Laboratories's Interest Coverage or its related term are showing as below:
NSE:ALKEM'
s Interest Coverage Range Over the Past 10 Years
Min: 14.23 Med: 19.9 Max: 43.32
Current: 16.32
NSE:ALKEM's Interest Coverage is ranked better than 55.41% of 684
companies
in the Drug Manufacturers industry
Industry Median: 12.765
vs NSE:ALKEM: 16.32
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Alkem Laboratories Interest Coverage Related Terms
Alkem Laboratories Interest Coverage Historical Data
* Premium members only.
The historical data trend for Alkem Laboratories's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
NSE:ALKEM vs ZTS, UTHR: Interest Coverage Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Alkem Laboratories's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Alkem Laboratories's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Alkem Laboratories's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Alkem Laboratories (NSE:ALKEM) has a Interest Coverage of 7.64 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Alkem Laboratories and its competitors. This is 62% below median its historical median of 19.90. Over the past decade, Alkem Laboratories' Interest Coverage has ranged from 14.23 to 43.32. According to the industry distribution chart, Alkem Laboratories ranks #305 out of 684 companies in the Drug Manufacturers industry, placing it in the top 44.6%.
Is Alkem Laboratories' Interest Coverage too high?
Alkem Laboratories' current Interest Coverage of 7.64 is 62% below median its 10-year median of 19.90. Over the past 10 years, this metric has ranged from a low of 14.23 to a high of 43.32. The Drug Manufacturers industry median Interest Coverage is 12.77. Alkem Laboratories' value of 7.64 is 40.1% below this industry median. Based on the distribution chart, Alkem Laboratories ranks #305 out of 684 companies in the Drug Manufacturers industry, which is above the industry midpoint. 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' Interest Coverage compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Alkem Laboratories ranks #305 out of 684 companies for Interest Coverage. This puts Alkem Laboratories in the upper half of its industry. The industry median Interest Coverage is 12.77. Alkem Laboratories' value of 7.64 is 40.1% below this benchmark. Historically, Alkem Laboratories' own Interest Coverage has ranged from 14.23 to 43.32 over the past decade. While the company's 10-year median is 19.90 vs. the industry median of 12.77, Alkem Laboratories has consistently been below 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 Interest Coverage for a Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.77, based on 684 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alkem Laboratories's current Interest Coverage of 7.64 is 40.1% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Alkem Laboratories and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alkem Laboratories's current Interest Coverage is 7.64, which is 62% below median its own 10-year median of 19.90. 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 Interest Coverage is 7.64, which is 62% below median its 10-year median of 19.90 and 40.1% below the Drug Manufacturers industry median of 12.77. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Alkem Laboratories (NSE:ALKEM), the current Interest Coverage is 7.64 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:
Interest Coverage: 7.64 (62% below median its 10-year median of 19.90)
GF Value™: ₹6,066.47 vs. price of ₹5,425.00 (10.6% below fair value)
Industry Position: 40.1% below the Drug Manufacturers median (#305 of 684)
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
Get the complete analysis for NSE:ALKEM
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:ALKEM has been successfully added to your 
