Alkem Laboratories Share Price: 8.2% CAGR in 3 Years as the Mumbai Drug Maker Compares With Ajanta Pharma and Cipla

Alkem Laboratories previous close Rs 5,448. 3-year CAGR 8.2%. Up 1.3x since 10 Nov 2023. ROE 16.66%. Market cap Rs 64,924 crore.

The Alkem Laboratories share price has delivered a steady return over three years, and the stock trades at a P/E well below the pharma industry level. Alkem Laboratories, based in Mumbai, sells branded generics in India for acute therapies such as infections, stomach problems and pain, and it also sells medicines in the United States and other markets.

This article compares that run with Ajanta Pharma and Cipla. We calculate the three-year CAGR for all three and set the results beside market cap, valuation, return on equity and debt, using prices adjusted for corporate actions.

Click Here – Get Free Investment Predictions

How Much Has the Alkem Laboratories Share Price Returned in 3 Years?

The Alkem Laboratories stock closed at Rs 4,306.25 on 10 November 2023 and at Rs 5,448.00 on 11 November 2026. Rs 1 lakh invested three years ago would have grown to about Rs 1.27 lakh, which is a CAGR of 8.2%. This is a price return and leaves out dividends.

CAGR condenses a bumpy three-year ride into one yearly number, which is why it is the fairest way to compare companies of different sizes. A stock such as Alkem Laboratories can look spectacular on a chart and still have earned a modest yearly return, so the compounded figure keeps the comparison honest.

The Alkem Laboratories share price has also followed steady demand for its branded medicines in India and the contribution of its exports and its biotech and contract manufacturing efforts.

Alkem Laboratories vs Ajanta Pharma and Cipla: 3-Year CAGR Compared

The table ranks the companies by three-year CAGR. Prices on 10 November 2023 are adjusted for splits and bonuses, and the latest figures are the previous close on 11 November 2026.

Company	Close on 10 Nov 2023	Previous close (11 Nov 2026)	Price multiple	3-year CAGR
Ajanta Pharma	Rs 1,887.85	Rs 3,319.60	1.8x	20.7%
Alkem Laboratories	Rs 4,306.25	Rs 5,448.00	1.3x	8.2%
Cipla	Rs 1,238.15	Rs 1,403.80	1.1x	4.3%

The Alkem Laboratories stock ranks second of the three at 8.2%. It sits ahead of Cipla (4.3%). The company ahead is Ajanta Pharma (20.7%). Ajanta Pharma leads the group, followed by Alkem Laboratories and then Cipla. Alkem sits in the middle on market cap and trades at the lowest P/E of the three.

Look at the Alkem Laboratories share price alongside the peers as a snapshot of the last three years. It describes what happened, and valuation and earnings will decide what happens next.

Valuation and Quality Compared

Company	Market cap	P/E	Industry P/E	ROE	Debt to equity
Cipla	Rs 1,14,478 crore	40.12	40.71	8.18%	0.02
Alkem Laboratories	Rs 64,924 crore	29.45	40.71	16.66%	0.15
Ajanta Pharma	Rs 41,443 crore	32.82	40.71	25.99%	0.03

By market cap, Cipla is the largest of the group at Rs 1,14,478 crore, while the Alkem Laboratories stock stands at Rs 64,924 crore, about 57% of that size. On earnings, Alkem Laboratories shares trade at a P/E of 29.45 against an industry P/E of 40.71, a discount of about 28% to the sector, which leaves room if earnings keep growing. Peer multiples are Ajanta Pharma at 32.82 and Cipla at 40.12.

Return on equity is 16.66% for the Alkem Laboratories stock, which ranks second among the three, and debt to equity stands at 0.15. Trailing EPS is Rs 184.35. Drug makers are valued on the stickiness of their brands, so the P/E should be read together with return on equity and the debt position.

What Is Driving the Alkem Laboratories Stock?

Alkem sells branded generics through a large field force in India, with leading names in anti-infectives, gastro-intestinal care, pain and vitamins. These are acute and chronic needs, so demand for them tends to be steady across the year.

The company also sells generic medicines in the United States and has built a biotech arm. It carries low debt, and its balance sheet leaves room to fund new capacity.

Followers of the Alkem Laboratories share price usually track growth of the India business, performance in the United States, margins and progress of the biotech arm.

How the Established Players Stack Up

Ajanta Pharma is a Mumbai-based drug maker with a focus on branded generics in ophthalmology, dermatology and cardiology. It compounded at 20.7% a year, on a market cap of Rs 41,443 crore and an ROE of 25.99%.

Cipla is a Mumbai-based pharma company with strength in respiratory medicines and a large export business. It compounded at 4.3% a year, on a market cap of Rs 1,14,478 crore and an ROE of 8.18%.

What Should Investors Track Next?

Three things are worth watching on the Alkem Laboratories share price. First, growth in the India branded business. Second, the US generics business. Third, margins as input costs move.

At a P/E of 29, the stock trades below the industry P/E of 41, and its debt to equity of 0.15 is low. Currency moves and pricing in the United States can affect results, so follow quarterly numbers closely.

Check the Univest Screener for live fundamentals of pharma stocks

How to Compare Pharma Stocks Yourself

You can repeat this exercise for any pair of stocks, including the Alkem Laboratories stock against its peers. Note the adjusted closing price on the base date, take the latest close, divide one by the other, raise the result to the power of one third and subtract one. Then place the CAGR next to market cap, P/E against the industry P/E, ROE and debt to equity. Benchmark the result against the Nifty 50 as well, so you know whether the stock beat the broader market.

A stock that scores well on growth but weakly on quality, or the reverse, deserves closer study before it enters a portfolio. When tracking the Alkem Laboratories share price, the same four checks give a more complete picture than price alone.

Download the Univest iOS App or Univest Android App to track the Alkem Laboratories share price and compare pharma stocks live.

A Branded Generics Leader at the Lowest P/E in Its Peer Group

The Alkem Laboratories share price compounded at 8.2% a year over three years, ahead of Cipla at 4.3% and behind Ajanta Pharma at 20.7%. Its P/E of 29.45 is the lowest of the three and its ROE of 16.66% sits in the middle.

Ajanta Pharma brings the faster return and the highest ROE, while Cipla brings the largest market cap. The choice depends on which business mix you prefer.

Frequently Asked Questions

What is the Alkem Laboratories share price today?

Ans. Alkem Laboratories closed at Rs 5,448 on 11 November 2026, according to NSE data. It has a market cap of Rs 64,924 crore and a P/E of 29.45. Check live quotes before acting, as prices change every trading day.

What is the 3-year CAGR of the Alkem Laboratories stock?

Ans. Alkem Laboratories delivered a price CAGR of 8.2% over three years, moving from Rs 4,306.25 on 10 November 2023 to Rs 5,448.00 on 11 November 2026. The figure excludes dividends and uses adjusted closing prices.

Is Alkem Laboratories better than Cipla?

Ans. Alkem Laboratories delivered a higher three-year CAGR at 8.2% than Cipla at 4.3%. Cipla is larger by market cap at Rs 1,14,478 crore against Rs 64,924 crore, while Alkem trades at a lower P/E of 29.45 against 40.12 and has a higher ROE at 16.66% against 8.18%. The better choice depends on your view of each business.

What does Alkem Laboratories do?

Ans. Alkem Laboratories is a Mumbai-based drug maker that sells branded generics in India and generic medicines in the United States and other markets.

Is the Alkem Laboratories stock debt free?

Ans. The debt to equity ratio of the Alkem Laboratories stock is 0.15 and its return on equity is 16.66%. Always check the latest balance sheet for current figures, as debt levels change with expansion plans.

Is Alkem Laboratories expensive compared with the industry?

Ans. Alkem Laboratories trades at a P/E of 29.45 against an industry P/E of 40.71. A higher multiple reflects expectations of faster growth, which the company must deliver through earnings.

Which pharma stock gave the highest return in 3 years?

Ans. Among the companies compared here, Ajanta Pharma delivered the highest three-year CAGR at 20.7%, followed by Alkem Laboratories at 8.2%. Past returns do not guarantee future performance.

How do I calculate CAGR for a stock?

Ans. Divide the latest price by the starting price, raise the result to the power of one divided by the number of years, and subtract one. Multiply by 100 for a percentage. Use split and bonus adjusted prices for accurate results.