BSE:506235

Stock Analysis Report

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Executive Summary

Alembic Limited manufactures and markets fermentation and chemistry based active pharmaceuticals ingredients (API). More Details


Snowflake Analysis

Flawless balance sheet with outstanding track record.


Similar Companies

Share Price & News

How has Alembic's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 506235 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 506235's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-1.1%

506235

2.1%

IN Pharmaceuticals

3.2%

IN Market


1 Year Return

112.5%

506235

47.7%

IN Pharmaceuticals

40.6%

IN Market

Return vs Industry: 506235 exceeded the Indian Pharmaceuticals industry which returned 47.9% over the past year.

Return vs Market: 506235 exceeded the Indian Market which returned 41% over the past year.


Shareholder returns

506235IndustryMarket
7 Day-1.1%2.1%3.2%
30 Day-1.1%-2.3%4.2%
90 Day-3.5%0.8%15.8%
1 Year114.1%112.5%49.4%47.7%43.1%40.6%
3 Year66.8%64.0%50.1%46.1%29.1%22.5%
5 Year176.9%169.7%18.6%14.2%93.5%78.3%

Long-Term Price Volatility Vs. Market

How volatile is Alembic's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Alembic undervalued compared to its fair value and its price relative to the market?

6.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 506235 (₹100.6) is trading above our estimate of fair value (₹8.87)

Significantly Below Fair Value: 506235 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 506235 is good value based on its PE Ratio (6.7x) compared to the IN Pharmaceuticals industry average (19.7x).

PE vs Market: 506235 is good value based on its PE Ratio (6.7x) compared to the Indian market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 506235's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 506235 is good value based on its PB Ratio (1.4x) compared to the IN Pharmaceuticals industry average (2.3x).


Next Steps

Future Growth

How is Alembic forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.5%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Alembic has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Alembic performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 506235 has high quality earnings.

Growing Profit Margin: 506235's current net profit margins are higher than last year .


Past Earnings Growth Analysis

Earnings Trend: 506235's earnings have grown significantly by 20.9% per year over the past 5 years.

Accelerating Growth: 506235's earnings growth over the past year (52.9%) exceeds its 5-year average (20.9% per year).

Earnings vs Industry: 506235 earnings growth over the past year (52.9%) exceeded the Pharmaceuticals industry 39.9%.


Return on Equity

High ROE: 506235's Return on Equity (20.2%) is considered high.


Next Steps

Financial Health

How is Alembic's financial position?


Financial Position Analysis

Short Term Liabilities: 506235's short term assets (₹1.5B) exceed its short term liabilities (₹545.7M).

Long Term Liabilities: 506235's short term assets (₹1.5B) exceed its long term liabilities (₹230.5M).


Debt to Equity History and Analysis

Debt Level: 506235 is debt free.

Reducing Debt: 506235 had no debt 5 years ago.

Debt Coverage: 506235 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 506235 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Alembic current dividend yield, its reliability and sustainability?

0.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 506235's dividend (0.6%) is higher than the bottom 25% of dividend payers in the Indian market (0.42%).

High Dividend: 506235's dividend (0.6%) is low compared to the top 25% of dividend payers in the Indian market (1.76%).


Stability and Growth of Payments

Stable Dividend: 506235's dividend payments have been volatile in the past 10 years.

Growing Dividend: 506235's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (4%), 506235's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.6yrs

Average management tenure


CEO

Malika Amin (65 yo)

no data

Tenure

₹14,373,000

Compensation

Mrs. Malika C. Amin has been the Chief Executive Officer and Managing Director at Alembic Limited since February 1, 2017. Mrs. Amin served as the Managing Director of Aavaran Ltd. Mrs. Amin serves as the C...


CEO Compensation Analysis

Compensation vs Market: Malika's total compensation ($USD196.16K) is below average for companies of similar size in the Indian market ($USD349.29K).

Compensation vs Earnings: Malika's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Malika Amin
MD, CEO & Executive Directorno data₹14.37m2.99%
₹ 772.5m
Rasesh Shah
Chief Financial Officer6.58yrs₹6.81m0%
₹ 0
Drigesh Mittal
Compliance Officer & Company Secretary5.75yrs₹1.42mno data
Pranav Amin
Chief Business Development Officerno data₹4.30m0.75%
₹ 194.4m
K. Srinivas
President of API Business & Generic Alliances15.83yrsno datano data

6.6yrs

Average Tenure

Experienced Management: 506235's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Malika Amin
MD, CEO & Executive Directorno data₹14.37m2.99%
₹ 772.5m
Chirayu Amin
Chairman no data₹130.00k3.24%
₹ 836.8m
Udit Amin
Non-Executive Director7.92yrs₹190.00kno data
Chandrashekhar Buch
Independent Director8.58yrs₹340.00kno data
Abhijit Joshi
Non-Executive Non-Independent Director6.33yrs₹150.00kno data
Sameer Khera
Non Executive Independent Director6.08yrs₹255.00kno data
Mayank Amin
Independent Director1.83yrs₹230.00k0.0070%
₹ 1.8m
Rati Desai
Independent Director1.58yrs₹80.00kno data

6.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 506235's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Alembic Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alembic Limited
  • Ticker: 506235
  • Exchange: BSE
  • Founded: 1907
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹25.832b
  • Shares outstanding: 256.78m
  • Website: https://www.alembiclimited.com

Number of Employees


Location

  • Alembic Limited
  • Alembic Road
  • Vadodara
  • Gujarat
  • 390003
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
506235BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 1996
ALEMBICLTDNSEI (National Stock Exchange of India)YesEquity SharesININRMay 1996

Biography

Alembic Limited manufactures and markets fermentation and chemistry based active pharmaceuticals ingredients (API). The company operates through API and Real Estate segments. It is also involved in the con...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 12:15
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.