Alpa Laboratories Limited (ALPA) AI Stock Analysis

• Market Cap: ₹1.25B
• Dividend Yield: N/A
• Average Volume (3M): 2.75K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 1.29
• Revenue Growth: 14.53%
• EPS Growth: -10.49%
• Country: IN
• Employees: 410
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.90
• Shares Outstanding: 21,040,600
• 10 Day Avg. Volume: 3,648
• 30 Day Avg. Volume: 2,746
• PEG Ratio: 0.73
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 2.00
• P/FCF Ratio: -104.73
• 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: 60 Neutral
• Price Target: ₹62.00 ▼(-17.99% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by solid fundamentals—strong growth/profitability and a very low-leverage balance sheet—partly offset by negative free cash flow and weak cash conversion. Technicals further weigh on the score due to a clear downtrend and negative momentum. Valuation is moderate based on the provided P/E, with no dividend yield data to add support.

Positive Factors

Revenue Growth

Sustained revenue growth near 17% demonstrates durable end-market demand and successful commercial execution. Over a multi-quarter horizon this supports scale advantages, steadier cash flow potential from larger sales base, and room to reinvest in product lines or geographic expansion.

Profitability / Margins

High EBIT and net margins indicate structurally efficient operations and pricing power in specialty/generic pharmaceuticals. These margins provide a buffer against cost inflation and enable reinvestment in R&D or manufacturing capacity, supporting medium-term earnings resilience.

Balance Sheet Strength

Near-zero leverage and a high equity ratio give the company financial flexibility for capex, M&A, or downturns without heavy interest burden. Strong ROE shows effective use of equity capital, reducing solvency risk and supporting sustained investment in growth initiatives.

Negative Factors

Weak Cash Conversion

Low OCF-to-net-income and negative free cash flow indicate earnings are not translating into cash, constraining internal funding for capex, working capital or dividends. Over months this can force reliance on external financing or slow growth investments, raising execution risk.

Declining Gross Margin

A falling gross margin signals rising production costs or pricing pressure that can erode the company’s margin base. If persistent, this reduces headroom to absorb SG&A or R&D spend and could compress EBIT and net margins despite current profitability levels.

Earnings Volatility (EPS Drop)

A sharp year-over-year EPS decline suggests earnings volatility or one-off items that weaken underlying earnings quality. Over a 2-6 month horizon, this may limit management’s ability to fund growth internally, increase perceived risk, and constrain strategic flexibility.

Alpa Laboratories Limited Business Overview & Revenue Model

Company Description

Alpa Laboratories Limited engages in manufacturing, marketing, and selling pharmaceutical finished dosage forms in India. It offers ethical, generic, and over the counter products in various finished dosage forms, including injections, tablets, capsules, eye and ear drops, ointments, creams, and gels for human use; and boluses, injections, and intra-mammary infusions for veterinary use. The company also provides drugs in various categories, such as anti-infectives comprising antibacterial, antibiotics, antifungals, antiprotozoals, and antivirals; analgesics; anti-inflammatory drugs; cough and cold drugs; cardiovascular drugs; anti-diabetics; nutritional supplements; psychotropic drugs; and skin care preparations, as well as ear and eye care preparations. It sells its products through distributors, retail chemists, retail pharmacy stores, and hospitals. The company also exports its products to South and Central America, Africa, and Asia, and CIS countries. Alpa Laboratories Limited was founded in 1967 and is based in Indore, India.

How the Company Makes Money

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Alpa Laboratories Limited Financial Statement Overview

Summary

Strong revenue growth (16.97%) and healthy profitability (net margin 17.34%, EBIT margin 23.03%) are supported by a very strong balance sheet with minimal leverage (debt-to-equity 0.0002). The main offset is weak cash conversion and negative free cash flow, with operating cash flow only 0.20x net income.

Income Statement

Alpa Laboratories Limited shows a strong revenue growth rate of 16.97% in the latest year, indicating robust demand for its products. The company maintains healthy profit margins, with a net profit margin of 17.34% and an EBIT margin of 23.03%, reflecting efficient cost management. However, the gross profit margin has decreased compared to previous years, suggesting potential pressure on production costs or pricing strategies.

Balance Sheet

The company's balance sheet is solid, with a very low debt-to-equity ratio of 0.0002, indicating minimal leverage and financial risk. Return on equity is strong at 11.38%, showcasing effective use of shareholder funds to generate profits. The equity ratio of 77.03% highlights a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow and a declining free cash flow growth rate. The operating cash flow to net income ratio is 0.20, suggesting that not all earnings are being converted into cash. The negative free cash flow to net income ratio indicates potential issues in cash generation relative to reported profits.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.11B	1.12B	1.09B	924.10M	1.11B	964.13M
Gross Profit	270.73M	193.99M	188.90M	307.44M	344.08M	316.58M
EBITDA	254.04M	281.01M	229.96M	174.43M	214.31M	130.29M
Net Income	186.58M	195.03M	167.76M	125.83M	140.92M	72.47M
Balance Sheet
Total Assets	2.38B	2.23B	1.82B	1.67B	1.55B	1.40B
Cash, Cash Equivalents and Short-Term Investments	1.39B	1.13B	928.54M	808.42M	702.74M	424.92M
Total Debt	0.00	343.00K	52.47M	23.04M	58.47M	1.92M
Total Liabilities	543.14M	511.59M	304.62M	326.92M	335.08M	327.27M
Stockholders Equity	1.83B	1.71B	1.52B	1.35B	1.22B	1.08B
Cash Flow
Free Cash Flow	89.97M	-21.42M	-27.36M	77.78M	77.49M	-49.20M
Operating Cash Flow	106.65M	92.37M	36.49M	89.04M	99.40M	-17.00M
Investing Cash Flow	-144.58M	-35.13M	-133.36M	21.27M	-156.10M	58.60M
Financing Cash Flow	22.40M	-52.47M	25.83M	-37.93M	54.42M	1.90M

Alpa Laboratories Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 75.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ALPA, the sentiment is Negative. The current price of 75.6 is above the 20-day moving average (MA) of 65.17, above the 50-day MA of 68.53, and below the 200-day MA of 86.63, indicating a bearish trend. The MACD of -2.27 indicates Positive momentum. The RSI at 33.76 is Neutral, neither overbought nor oversold. The STOCH value of 40.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ALPA.

Alpa Laboratories Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALPA	60 Neutral	₹1.25B	21.48	―	―	14.53%	-10.49%
BAFNAPH	58 Neutral	₹2.56B	48.53	―	―	-0.77%	2055.99%
BALPHARMA	58 Neutral	₹1.06B	16.40	―	1.62%	-9.07%	5.36%
VAISHALI	54 Neutral	₹650.66M	21.33	―	―	18.35%	-154.65%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AAREYDRUGS	48 Neutral	₹1.90B	84.53	―	―	-17.47%	-50.07%
KREBSBIO	41 Neutral	₹1.05B	-11.90	―	―	-46.31%	-26.28%

Alpa Laboratories Limited Corporate Events

Alpa Laboratories to Shut Trading Window Ahead of Q3 FY2026 Results

Alpa Laboratories Limited has announced that it will close its trading window for dealings in the company’s shares from January 1, 2026 until 48 hours after the declaration of its unaudited financial results for the quarter ending December 31, 2025, in line with SEBI’s Prohibition of Insider Trading Regulations and its internal code of conduct. The move underscores the company’s adherence to regulatory norms on insider trading and aims to ensure that directors, employees and other insiders do not trade in the company’s securities while in possession of unpublished price-sensitive information, thereby reinforcing governance standards for investors and market participants.