Alkem LaboratoriesNSE:ALKEM +0.24%96 Operating Margin % is 11.42% as of Mar. 2026, which is 29% below its 10-year median of 16.09. GuruFocus rates NSE:ALKEM with a GF Score™ of 96/100 and a GF Value™ of ₹6,064.54 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 955 Drug Manufacturers companies, Alkem Laboratories ranks better than 77.59% on this metric.
The historical rank and industry rank for Alkem Laboratories's Operating Margin % or its related term are showing as below:
NSE:ALKEM'
s Operating Margin % Range Over the Past 10 Years
Min: 11.66 Med: 16.09 Max: 19.15
Current: 17.83
NSE:ALKEM's Operating Margin % is ranked better than 77.59% of 955
companies
in the Drug Manufacturers industry
Industry Median: 7.45
vs NSE:ALKEM: 17.83
Alkem Laboratories's 5-Year Average Operating Margin % Growth Rate was -0.20% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Alkem Laboratories Operating Margin % Related Terms
Alkem Laboratories Operating Margin % Historical Data
* Premium members only.
The historical data trend for Alkem Laboratories's Operating 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 Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Alkem Laboratories's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Alkem Laboratories's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Alkem Laboratories's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* 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 Operating Margin % of 11.42% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Alkem Laboratories and its competitors. This is 29% below median its historical median of 16.09. Over the past decade, Alkem Laboratories' Operating Margin % has ranged from 11.66 to 19.15. According to the industry distribution chart, Alkem Laboratories ranks #214 out of 955 companies in the Drug Manufacturers industry, placing it in the top 22.4%.
Is Alkem Laboratories' Operating Margin % too high?
Alkem Laboratories' current Operating Margin % of 11.42% is 29% below median its 10-year median of 16.09. Over the past 10 years, this metric has ranged from a low of 11.66 to a high of 19.15. The Drug Manufacturers industry median Operating Margin % is 7.45. Alkem Laboratories' value of 11.42% is 53.3% above this industry median. Based on the distribution chart, Alkem Laboratories ranks #214 out of 955 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' Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Alkem Laboratories ranks #214 out of 955 companies for Operating Margin %. This places Alkem Laboratories in the top 22% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.45. Alkem Laboratories' value of 11.42% is 53.3% above this benchmark. Historically, Alkem Laboratories' own Operating Margin % has ranged from 11.66 to 19.15 over the past decade. While the company's 10-year median is 16.09 vs. the industry median of 7.45, 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 Operating Margin % for a Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alkem Laboratories's current Operating Margin % of 11.42% is 53.3% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Alkem Laboratories and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alkem Laboratories's current Operating Margin % is 11.42%, which is 29% below median its own 10-year median of 16.09. 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 ₹6,064.54, compared to a current price of ₹5,428.50 — trading 10.5% below its estimated fair value. The current Operating Margin % is 11.42%, which is 29% below median its 10-year median of 16.09 and 53.3% above the Drug Manufacturers industry median of 7.45. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Alkem Laboratories (NSE:ALKEM), the current Operating Margin % is 11.42% 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 ₹5,428.50 is trading 10.5% below its estimated GF Value™ of ₹6,064.54.
GuruFocus considers Alkem Laboratories to be Modestly Undervalued.
Key valuation signals for NSE:ALKEM:
Operating Margin %: 11.42% (29% below median its 10-year median of 16.09)
GF Value™: ₹6,064.54 vs. price of ₹5,428.50 (10.5% below fair value)
Industry Position: 53.3% above the Drug Manufacturers median (#214 of 955)
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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