APLLTD - Fundamental Analysis: Financial Health & Valuation

📊 Financial Overview: Alembic Pharmaceuticals Ltd. (APLLTD) presents a stable financial profile with a ROCE of 11.3% and ROE of 9.68%, indicating moderate capital efficiency. The company maintains a healthy debt-to-equity ratio of 0.23, supporting long-term sustainability. EPS stands at ₹21.9, and quarterly PAT rose to ₹104 Cr from ₹75.3 Cr, though the profit variance of -41.2% suggests prior volatility. The stock is trading below both DMA 50 and DMA 200, indicating short-term technical weakness.

💰 Valuation Metrics: The stock trades at a P/E of 42.1, above the industry average of 33.1, suggesting a premium valuation. The P/B ratio is ~3.41 (₹900 / ₹264), and the PEG ratio of -12.8 reflects negative earnings growth, raising caution. A dividend yield of 1.22% offers modest income support.

🏢 Business Model & Competitive Edge: Alembic Pharma operates in generics, APIs, and specialty pharma across domestic and international markets. Its strong R&D capabilities, regulatory compliance, and diversified product portfolio provide resilience. However, margin pressures and regulatory headwinds in export markets remain key challenges.

📉 Entry Zone: A favorable entry zone lies between ₹780–₹820, closer to the 52-week low and below DMA levels, offering better valuation comfort.

📈 Long-Term Holding Guidance: APLLTD is suitable for long-term investors seeking exposure to generics and specialty pharma. Accumulate on dips and monitor regulatory developments, product launches, and export performance.