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Alkem LaboratoriesNSE:ALKEM -2.56%97 ROC (Joel Greenblatt) % is 27.90% as of Mar. 2026, which is 12% below its 10-year median of 31.65. GuruFocus rates NSE:ALKEM with a GF Score™ of 97/100 and a GF Value™ of ₹6,112.08 (Fairly Valued). The stock has 1 warning sign investors should review. Among 982 Drug Manufacturers companies, Alkem Laboratories ranks better than 82.28% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Alkem Laboratories's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 27.90%.
The historical rank and industry rank for Alkem Laboratories's ROC (Joel Greenblatt) % or its related term are showing as below:
NSE:ALKEM'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 18.63 Med: 31.65 Max: 45.68
Current: 44.55
During the past 13 years, Alkem Laboratories's highest ROC (Joel Greenblatt) % was 45.68%. The lowest was 18.63%. And the median was 31.65%.
NSE:ALKEM's ROC (Joel Greenblatt) % is ranked better than 82.28% of 982
companies
in the Drug Manufacturers industry
Industry Median: 11.495
vs NSE:ALKEM: 44.55
Alkem Laboratories's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 9.50% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Alkem Laboratories ROC (Joel Greenblatt) % Related Terms
Alkem Laboratories ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Alkem Laboratories's ROC (Joel Greenblatt) % 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.
NSE:ALKEM vs ZTS, UTHR: ROC (Joel Greenblatt) % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Alkem Laboratories's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Alkem Laboratories's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Alkem Laboratories's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 27.90% mean?
Alkem Laboratories (NSE:ALKEM) has a ROC (Joel Greenblatt) % of 27.90% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Alkem Laboratories and its competitors. This is 12% below median its historical median of 31.65. Over the past decade, Alkem Laboratories' ROC (Joel Greenblatt) % has ranged from 18.63 to 45.68. According to the industry distribution chart, Alkem Laboratories ranks #174 out of 982 companies in the Drug Manufacturers industry, placing it in the top 17.7%.
Is Alkem Laboratories' ROC (Joel Greenblatt) % too high?
Alkem Laboratories' current ROC (Joel Greenblatt) % of 27.90% is 12% below median its 10-year median of 31.65. Over the past 10 years, this metric has ranged from a low of 18.63 to a high of 45.68. The Drug Manufacturers industry median ROC (Joel Greenblatt) % is 11.50. Alkem Laboratories' value of 27.90% is 142.7% above this industry median. Based on the distribution chart, Alkem Laboratories ranks #174 out of 982 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 97/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Alkem Laboratories' ROC (Joel Greenblatt) % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Alkem Laboratories ranks #174 out of 982 companies for ROC (Joel Greenblatt) %. This places Alkem Laboratories in the top 18% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 11.50. Alkem Laboratories' value of 27.90% is 142.7% above this benchmark. Historically, Alkem Laboratories' own ROC (Joel Greenblatt) % has ranged from 18.63 to 45.68 over the past decade. While the company's 10-year median is 31.65 vs. the industry median of 11.50, 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 ROC (Joel Greenblatt) % for a Drug Manufacturers company?
The median ROC (Joel Greenblatt) % among Drug Manufacturers companies is 11.50, based on 982 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alkem Laboratories's current ROC (Joel Greenblatt) % of 27.90% is 142.7% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Alkem Laboratories and its competitors. For the Drug Manufacturers industry, the median ROC (Joel Greenblatt) % is 11.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alkem Laboratories's current ROC (Joel Greenblatt) % is 27.90%, which is 12% below median its own 10-year median of 31.65. 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 Fairly Valued. The stock's GF Value™ is ₹6,112.08, compared to a current price of ₹5,563.00 — trading 9% below its estimated fair value. The current ROC (Joel Greenblatt) % is 27.90%, which is 12% below median its 10-year median of 31.65 and 142.7% above the Drug Manufacturers industry median of 11.50. Alkem Laboratories' overall GF Score™ is 97/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Alkem Laboratories (NSE:ALKEM), the current ROC (Joel Greenblatt) % is 27.90% 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 ₹5,563.00 is trading 9% below its estimated GF Value™ of ₹6,112.08.
GuruFocus considers Alkem Laboratories to be Fairly Valued.
Key valuation signals for NSE:ALKEM:
ROC (Joel Greenblatt) %: 27.90% (12% below median its 10-year median of 31.65)
GF Value™: ₹6,112.08 vs. price of ₹5,563.00 (9% below fair value)
Industry Position: 142.7% above the Drug Manufacturers median (#174 of 982)
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.
97GF Score
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