Alembic Limited (ALEMBICLTD) AI Stock Analysis

• Market Cap: ₹20.81B
• Dividend Yield: 2.36%
• Average Volume (3M): 22.23K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.56
• Revenue Growth: 16.53%
• EPS Growth: 4.37%
• Country: IN
• Employees: 285
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 2.34
• Shares Outstanding: 256,781,830
• 10 Day Avg. Volume: 15,327
• 30 Day Avg. Volume: 22,227
• PEG Ratio: 0.53
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 11.55
• P/FCF Ratio: 71.97
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ₹91.00 ▼(-11.99% Downside)
• Action: Upgraded Date: 10/24/25
• Date: Action: Upgraded 10/24/25

Alembic Limited's strong financial performance and attractive valuation are the primary drivers of its stock score. The company's robust revenue growth and profitability metrics, combined with a low P/E ratio and reasonable dividend yield, suggest a solid investment opportunity. However, mixed technical indicators and potential sustainability concerns regarding profit metrics slightly temper the overall outlook.

Positive Factors

Revenue growth & high margins

Sustained double-digit revenue expansion with very healthy gross and operating margins indicates strong product demand, pricing power and cost efficiency across portfolios. High core margins support durable cash generation potential and reinvestment capacity into R&D and commercial expansion over the medium term.

Very low leverage / strong capital structure

Extremely low leverage and a high equity ratio provide financial flexibility to fund capex, regulatory filings and M&A without stressing liquidity. A conservative capital structure reduces refinancing risk and supports stable investment through industry cycles, strengthening long-term operational resilience.

Vertically integrated, diversified model

Owning API production while selling finished dosages and branded domestic products plus international generics creates diversified revenue streams and margin capture. Vertical integration lowers supply risk, improves cost control and supports sustainable growth from both domestic franchises and global generic launches.

Negative Factors

Unusually high net profit margin

An outsized net margin driven by non-recurring items undermines the sustainability of reported profitability. If core earnings revert, cash generation and return metrics could weaken, complicating forecasting, capital allocation and investor assessment of genuine operating performance over the medium term.

Weak cash conversion ratios

Low conversion of accounting earnings into operating and free cash flow suggests limited real cash flexibility despite profitable headlines. This constrains durable funding for capex, filings, dividends or buybacks and raises vulnerability if earnings are affected by cyclical pressures or if non-recurring gains do not repeat.

Execution risk in international generics growth

Revenue from regulated-market generics is structurally dependent on timely approvals, successful launches and competitive pricing. Regulatory delays, competition or manufacturing disruptions can materially affect overseas sales, making medium-term growth execution and predictability more uncertain.

Alembic Limited Business Overview & Revenue Model

Company Description

Alembic Limited engages in the manufacturing and marketing of fermentation and chemistry based active pharmaceuticals ingredients (API). It operates through API and Real Estate segments. The company is also involved in the construction of residential and commercial real estate projects; provision of project management and marketing consultancy services; and leasing of commercial properties. In addition, it operates co-generation plants with a total capacity of 11 MW; and wind power plants with a total capacity of 5 MW. The company also exports its products. Alembic Limited was founded in 1907 and is based in Vadodara, India. Alembic Limited is a subsidiary of Nirayu Limited.

How the Company Makes Money

Alembic Limited makes money primarily by selling pharmaceutical products, with revenue generated from (1) finished dosage formulations (FDFs) and (2) active pharmaceutical ingredients (APIs). In its India business, it earns revenue from branded formulations sold through a domestic sales force and distributor/stockist network to hospitals, pharmacies, and other healthcare channels; this model typically monetizes through product volumes and pricing across therapeutic franchises. In its international generics business, it generates sales by commercializing off-patent generic drugs in overseas markets (including regulated markets), where revenue is driven by product approvals, successful launches, market share captured versus competing generics, and ongoing supply to customers (such as wholesalers, distributors, and other pharma companies). The API business contributes by supplying in-house needs for formulations and selling APIs externally to other pharmaceutical manufacturers; earnings depend on API volumes, product mix, and manufacturing economics. Additional contributors can include contract manufacturing/technology-related supply arrangements or licensing-type income; however, specific details on the scale of these items for Alembic Limited are null.

Alembic Limited Financial Statement Overview

Summary

Alembic Limited demonstrates strong financial health with impressive revenue growth and profitability metrics. The balance sheet is solid, supported by low leverage and high equity. However, some profit metrics appear inflated, possibly due to non-recurring gains, which may affect sustainability. While improvements in cash flow are evident, further enhancements in cash conversion and management are necessary to support long-term growth.

Income Statement

Alembic Limited shows strong revenue growth with a 50.8% increase from 2024 to 2025, demonstrating robust expansion in the specialty and generic drug market. The gross profit margin is healthy at 68.8% for 2025, reflecting effective cost management. However, the net profit margin is unusually high at 140%, likely due to one-time gains or accounting adjustments, which could be an anomaly. The EBIT margin of 37.4% and EBITDA margin of 76% indicate strong core operational profitability.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.006 in 2025, signifying low leverage and financial risk. The equity ratio stands robust at 93.4%, showing a strong capital structure. Return on Equity (ROE) is high at 13.3%, driven by substantial net income, but this figure may be inflated by non-recurring items. Overall, the balance sheet reflects financial stability, though the high net income may not be sustainable.

Cash Flow

The cash flow statement reveals a positive shift in free cash flow, from negative in 2024 to positive in 2025, indicating improved cash generation. The operating cash flow to net income ratio of 0.28 suggests moderate cash conversion efficiency. The free cash flow to net income ratio of 0.11 is low, hinting at potential cash flow challenges despite high net income figures. The company shows progress in cash flow management, but sustainability remains a concern.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.24B	2.22B	1.57B	1.18B	713.69M	678.37M
Gross Profit	1.58B	1.53B	872.46M	702.07M	404.50M	392.74M
EBITDA	1.72B	1.69B	1.12B	939.86M	1.03B	213.43M
Net Income	3.24B	3.11B	2.69B	1.91B	2.22B	3.43B
Balance Sheet
Total Assets	27.27B	25.03B	23.29B	22.05B	26.32B	24.09B
Cash, Cash Equivalents and Short-Term Investments	888.10M	582.80M	129.05M	464.09M	270.77M	225.14M
Total Debt	125.80M	144.50M	91.49M	0.00	0.00	2.77M
Total Liabilities	1.91B	1.64B	1.43B	1.27B	1.35B	1.12B
Stockholders Equity	25.36B	23.39B	21.86B	20.78B	24.97B	22.97B
Cash Flow
Free Cash Flow	257.50M	356.00M	-336.03M	130.35M	-535.60M	-496.37M
Operating Cash Flow	489.60M	863.70M	226.87M	388.52M	-177.47M	-21.82M
Investing Cash Flow	135.10M	-265.80M	258.36M	72.96M	188.48M	-348.69M
Financing Cash Flow	-639.70M	-583.40M	-481.94M	-463.88M	-58.16M	-153.62M

Alembic Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 103.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ALEMBICLTD, the sentiment is Negative. The current price of 103.4 is above the 20-day moving average (MA) of 90.06, above the 50-day MA of 94.10, and above the 200-day MA of 102.88, indicating a bearish trend. The MACD of -3.38 indicates Positive momentum. The RSI at 24.15 is Positive, neither overbought nor oversold. The STOCH value of 4.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ALEMBICLTD.

Alembic Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALEMBICLTD	74 Outperform	₹20.81B	10.80	―	2.36%	16.53%	4.37%
AUROPHARMA	74 Outperform	₹752.84B	18.87	―	0.33%	7.33%	-3.79%
IPCALAB	74 Outperform	₹395.91B	27.58	―	0.28%	9.66%	25.79%
ALKEM	72 Outperform	₹639.85B	25.97	―	0.80%	9.32%	11.25%
APLLTD	60 Neutral	₹133.49B	31.27	―	1.28%	11.42%	-1.91%
GLENMARK	53 Neutral	₹612.38B	35.61	―	0.24%	30.27%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%