NSEI:APLLTD

Stock Analysis Report

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Market Cap

₹185.9b

Last Updated

2021/07/23 17:08 UTC

Data Sources

Company Financials +

Executive Summary

Alembic Pharmaceuticals Limited develops, manufactures, and markets pharmaceutical products in India and internationally. More Details


Snowflake Analysis

Excellent balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: APLLTD is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: APLLTD's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-2.3%

APLLTD

0.9%

IN Pharmaceuticals

-0.1%

IN Market


1 Year Return

-3.5%

APLLTD

42.5%

IN Pharmaceuticals

53.0%

IN Market

Return vs Industry: APLLTD underperformed the Indian Pharmaceuticals industry which returned 42.5% over the past year.

Return vs Market: APLLTD underperformed the Indian Market which returned 53% over the past year.


Shareholder returns

APLLTDIndustryMarket
7 Day-2.3%0.9%-0.1%
30 Day-3.5%4.2%1.3%
90 Day-5.2%11.7%14.9%
1 Year-2.1%-3.5%43.8%42.5%55.1%53.0%
3 Year73.0%65.8%74.9%70.0%40.2%33.0%
5 Year59.7%50.7%41.8%36.7%82.5%67.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: APLLTD (₹946) is trading above our estimate of fair value (₹692.93)

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


Price To Earnings Ratio

PE vs Industry: APLLTD is good value based on its PE Ratio (15.6x) compared to the Indian Pharmaceuticals industry average (26x).

PE vs Market: APLLTD is good value based on its PE Ratio (15.6x) compared to the Indian market (23.8x).


Price to Earnings Growth Ratio

PEG Ratio: APLLTD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: APLLTD is overvalued based on its PB Ratio (3.6x) compared to the IN Pharmaceuticals industry average (3.4x).


Future Growth

How is Alembic Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APLLTD's earnings are forecast to decline over the next 3 years (-5.4% per year).

Earnings vs Market: APLLTD's earnings are forecast to decline over the next 3 years (-5.4% per year).

High Growth Earnings: APLLTD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: APLLTD's revenue (8.5% per year) is forecast to grow slower than the Indian market (12.6% per year).

High Growth Revenue: APLLTD's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: APLLTD's Return on Equity is forecast to be low in 3 years time (16.7%).


Past Performance

How has Alembic Pharmaceuticals performed over the past 5 years?

18.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APLLTD has high quality earnings.

Growing Profit Margin: APLLTD's current net profit margins (21.8%) are higher than last year (18%).


Past Earnings Growth Analysis

Earnings Trend: APLLTD's earnings have grown by 18.3% per year over the past 5 years.

Accelerating Growth: APLLTD's earnings growth over the past year (42.1%) exceeds its 5-year average (18.3% per year).

Earnings vs Industry: APLLTD earnings growth over the past year (42.1%) underperformed the Pharmaceuticals industry 58.3%.


Return on Equity

High ROE: APLLTD's Return on Equity (22.6%) is considered high.


Financial Health

How is Alembic Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: APLLTD's short term assets (₹25.8B) exceed its short term liabilities (₹12.8B).

Long Term Liabilities: APLLTD's short term assets (₹25.8B) exceed its long term liabilities (₹3.6B).


Debt to Equity History and Analysis

Debt Level: APLLTD's debt to equity ratio (9.9%) is considered satisfactory.

Reducing Debt: APLLTD's debt to equity ratio has increased from 8.6% to 9.9% over the past 5 years.

Debt Coverage: APLLTD's debt is well covered by operating cash flow (292.8%).

Interest Coverage: APLLTD's interest payments on its debt are well covered by EBIT (89.8x coverage).


Balance Sheet


Dividend

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

1.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: APLLTD's dividend (1.48%) is higher than the bottom 25% of dividend payers in the Indian market (0.36%).

High Dividend: APLLTD's dividend (1.48%) is in the top 25% of dividend payers in the Indian market (1.44%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, APLLTD has been paying a dividend for less than 10 years.

Growing Dividend: APLLTD's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23%), APLLTD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: APLLTD's dividends in 3 years are forecast to be well covered by earnings (18% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Chirayu Amin (75 yo)

5.25yrs

Tenure

₹315,000,000

Compensation

Mr. Chirayu Ramanbha Amin, M.B.A. (U.S.A.), has been Chief Executive Officer of Alembic Pharmaceuticals Limited since April 27, 2016. Mr. Amin served as Managing Director of Alembic Pharmaceuticals Limited...


CEO Compensation Analysis

Compensation vs Market: Chirayu's total compensation ($USD4.23M) is above average for companies of similar size in the Indian market ($USD620.84K).

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


Leadership Team

Experienced Management: APLLTD's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: APLLTD's board of directors are seasoned and experienced ( 10.3 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 been diluted in the past year, with total shares outstanding growing by 4.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Alembic Pharmaceuticals Limited
  • Ticker: APLLTD
  • Exchange: NSEI
  • Founded: 1907
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹185.949b
  • Shares outstanding: 196.56m
  • Website: https://www.alembicpharmaceuticals.com

Number of Employees


Location

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

Listings


Biography

Alembic Pharmaceuticals Limited develops, manufactures, and markets pharmaceutical products in India and internationally. It offers active pharmaceutical ingredients (API) and formulations. The company als...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/23 17:08
End of Day Share Price2021/07/23 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.