Alkem Laboratories (NSE:ALKEM) ROCE %: 11.85% (As of Mar. 2026)


NSE:ALKEM Alkem Laboratories Ltd NSE:ALKEM
96 GF Score
Price ₹5,425.00
GF Value ₹6,066.47
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Alkem Laboratories ROCE %?

Alkem Laboratories NSE:ALKEM -0.06% 96 ROCE % is 11.85% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Alkem Laboratories's annualized ROCE % for the quarter that ended in Mar. 2026 was 11.85%.

Alkem Laboratories  (NSE:ALKEM) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Alkem Laboratories ROCE % Related Terms

Alkem Laboratories ROCE % Historical Data

* Premium members only.

The historical data trend for Alkem Laboratories's ROCE % 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.

Alkem Laboratories ROCE % Chart

Alkem Laboratories Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.95 14.48 19.59 20.93 20.34

Alkem Laboratories Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.38 23.34 24.16 21.37 11.85
NSE:ALKEM
96GF Score
Alkem Laboratories Ltd NSE:ALKEM
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Alkem Laboratories ROCE % Calculation

Alkem Laboratories's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=30316.7/( ( (176911 - 39649.8) + (208729.7 - 47827) )/ 2 )
=30316.7/( (137261.2+160902.7)/ 2 )
=30316.7/149081.95
=20.34 %

Alkem Laboratories's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=19069.2/( ( (0 - 0) + (208729.7 - 47827) )/ 1 )
=19069.2/( ( 0 + 160902.7 )/ 1 )
=19069.2/160902.7
=11.85 %

(1) 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 11.85% mean?
Alkem Laboratories (NSE:ALKEM) has a ROCE % of 11.85% as of Mar. 2026.
Is Alkem Laboratories' ROCE % too high?
Alkem Laboratories' current ROCE % is 11.85%. The Drug Manufacturers industry median ROCE % is 7.00. Alkem Laboratories' value of 11.85% is 69.4% above this industry median. 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' ROCE % compare to ZTS?
Alkem Laboratories' ROCE % of 11.85% can be compared against companies in the Drug Manufacturers industry. The industry median ROCE % is 7.00. Alkem Laboratories' value of 11.85% is 69.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Drug Manufacturers company?
The median ROCE % among Drug Manufacturers companies is 7.00, based on 958 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alkem Laboratories's current ROCE % of 11.85% is 69.4% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Drug Manufacturers industry, the median ROCE % is 7.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alkem Laboratories's current ROCE % is 11.85%. 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 ROCE % is 11.85% and 69.4% above the Drug Manufacturers industry median of 7.00. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Alkem Laboratories (NSE:ALKEM), the current ROCE % is 11.85% 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:

  • ROCE %: 11.85%
  • GF Value™: ₹6,066.47 vs. price of ₹5,425.00 (10.6% below fair value)
  • GF Score™: 96/100 with 1 warning sign
  • Industry Position: 69.4% above the Drug Manufacturers median

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 Business Description

Other Exchanges 539523:India
Address Senapati Bapat Marg, Alkem House, Devashish Building, Lower Parel, Mumbai, MH, IND, 400 013
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

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹5,425.00
Price
₹6,066.47
GF Value