APLLTD - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.4

Here’s a comprehensive breakdown of Alembic Pharmaceuticals Ltd. (APLLTD) — an established generics and APIs manufacturer navigating margin pressures while holding firm on long-term fundamentals.

💼 Core Financial Analysis

Profitability & Returns

ROE: 11.4%, ROCE: 13.0% — moderate efficiency; lower than sector leaders.

EPS: ₹29.7 — fair per-share earnings, aligned with industry averages.

Quarterly PAT Drop: ₹157 Cr ↓ from ₹138 Cr — -12.1% variation, reflects potential margin headwinds or rising input costs.

Debt Profile

Debt-to-Equity: 0.24 — healthy leverage; not overstretched.

Dividend Yield: 1.09% — indicates shareholder reward orientation while retaining earnings for growth.

📈 Valuation Metrics

Metric Value Interpretation

P/E Ratio 35.0 On par with Industry PE: 34.0, fairly valued

P/B Ratio ~3.84 High vs Book Value ₹264 — signals premium pricing

PEG Ratio 11.3 ⚠️ Extremely high — suggests rich valuation compared to growth

Intrinsic Value Around CMP Not deeply undervalued; fair for long-term

🧠 Business Model & Competitive Edge

Strong presence in US generics, India branded formulations, and API exports.

Reputation for regulatory compliance (USFDA approvals) and R&D-driven pipeline.

Faces headwinds in pricing pressure abroad and raw material volatility.

Consistent investment in formulation capacity and injectables.

🔍 Technical Signals

RSI: 53.7 — neutral, mildly bullish strength.

MACD: +8.46 — bullish momentum emerging.

Trading above DMA 50 & DMA 200 — hints at medium-term upside breakout.

CMP near ₹1,013, far from 52W low ₹725 — decent rebound already underway.

🎯 Entry Zone & Long-Term Strategy

Entry Zone: ₹965–₹985 — ideal pullback range for accumulation.

For long-term holders

Ride the generics growth cycle, especially with new launches in regulated markets.

Monitor margin restoration, expansion in oncology & injectable verticals.

Solid base in India makes it resilient against global swings.

Want to compare Alembic’s growth consistency and valuation premiums with peers like Alkem, IPCA, or Torrent Pharma? I can whip up a strategic head-to-head scorecard to sharpen your view 📊🔍.

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