Check Before You Invest : Alembic Ltd

Snapshot

Q.1 Which industry/sub-sector does Alembic Ltd belong to?

Alembic Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.

Q.2 Is Alembic Ltd a good quality company?

Alembic Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Alembic Ltd undervalued or overvalued?

Alembic Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Alembic Ltd a good buy now?

Alembic Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Alembic Ltd?

Alembic Ltd revenue growth is 40.9% for FY-2025, which is above its 5-year CAGR of 24.58%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Alembic Ltd?

Alembic Ltd Return on capital employed is 6.95% for FY-2025, which is above its 5-year historical median of 4.1%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Alembic Ltd?

Alembic Ltd Return on Asset is 5.96%, which is above its 5-year historical median of 3.42%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Alembic Ltd?

Alembic Ltd Return on equity is 6.39% for FY-2025, which is above its 5-year historical median of 3.6%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Alembic Ltd?

Alembic Ltd Cash conversion cycle is 110 days, below its 5-year historical median of 184 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.09	0.05
ROE	6.39	3.6
ROCE	6.95	4.1
Cash Conversion Cycle	110 days	184 days

Q.6 Gross Profit margin of Alembic Ltd?

Alembic Ltd Gross profit margin which is the profit after deduction of direct costs, is 74.9% for FY-2025, which is in line with its 5-year median of 74.9%, indicating stable margins.

Q.7 Operating Profit Margin of Alembic Ltd?

Alembic Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 42.23% for FY-2025, which is above its 5-year median of 31.7% indicating increasing margins.

Q.8 Net Profit Margin of Alembic Ltd?

Alembic Ltd Net Profit Margin is 65.16% for FY-2025, is in line with with its 5-year median of 63.36%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	74.9	74.9
Operating Profit Margin	42.23	31.7
Net Profit Margin	65.16	63.36

Q.9 Debt to Equity ratio of Alembic Ltd?

Alembic Ltd Debt-to-Equity ratio is 0.01, which is lower with the industry average of 0.31, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Alembic Ltd?

Alembic Ltd Debt to cash flow from operations is 0.17, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Alembic Ltd?

Promoters hold 70.88% of the Alembic Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Alembic Ltd vs industry peers?

Alembic Ltd revenue CAGR is 24.58%, compared to the industry median CAGR of 4.37%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	40.9	4.4
Gross Profit Growth	49.6	NAN
Operating Profit Growth	64.9	NAN
Net Profit Growth	55.9	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.09	0.14
ROE	6.39	1.52
ROCE	6.95	4.04
Cash Conversion Cycle (days)	110.22	625

Valuation & price assessment

Q.1 Stock return of Alembic Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 9.6% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	9.6%	-6.6%	13.6%	-8.7%

Q.3 Valuation ratios of Alembic Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	7.37	9.47	34.05
Price to Book	0.92	1.08	1.53
Price to Sales	9.77	15.07	5.34
EV to EBITDA	13.75	18.20	14.40

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