APLLTD - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.7

Here’s a detailed breakdown of APLLTD (Alembic Pharmaceuticals Ltd)

🧾 Core Financials

Profitability & Growth

PAT improved QoQ from ₹75.3 Cr to ₹104 Cr, but YoY profit variation is -41.2%, indicating earnings volatility.

EPS: ₹21.9 — decent, though not exceptional for its market cap.

ROE: 9.68% and ROCE: 11.3% — moderate return metrics, below top-tier pharma benchmarks.

Debt & Liquidity

Debt-to-equity: 0.23 — low leverage, a positive for financial stability.

Dividend Yield: 1.15% — modest, adds shareholder value.

📊 Valuation Indicators

Metric Value Industry Avg Remarks

P/E Ratio 44.8 33.4 Slightly overvalued

P/B Ratio ~3.63 ~3.5 Fairly valued

PEG Ratio -13.6 ~1 Not meaningful due to negative growth

Intrinsic Value ~₹850–₹900 — Slightly overvalued

Valuation is moderately stretched, with PEG indicating weak earnings momentum.

🏢 Business Model & Competitive Edge

Core Operations: Branded generics and APIs across India and international markets.

Strengths

Strong R&D capabilities and diversified product portfolio.

Low debt and consistent dividend payout.

Risks

Declining profitability and weak ROE.

Flat institutional holding change suggests neutral sentiment.

📉 Technical & Entry Zone

Current Price: ₹957

DMA 50/200: ₹964 / ₹964 — trading near key averages.

RSI: 48.9 — neutral zone.

MACD: -1.27 — bearish crossover.

Suggested Entry Zone: ₹850–₹900 range, ideally near intrinsic value or 52-week low of ₹725.

🕰️ Long-Term Holding Guidance

Hold if already invested, especially for exposure to stable pharma operations.

Consider fresh entry on dips below ₹900.

Ideal for long-term only if

PAT growth resumes above 15% CAGR.

ROE improves above 12% and PEG normalizes below 2.

Would you like a peer comparison with Torrent Pharma or a breakdown of Alembic’s API export strategy?

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