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Alembic Ltd Stock Analysis

Small Cap
Evaluated by 1410 users | BSE: 506235 | NSE: ALEMBICLTD |
Pharmaceuticals & Drugs
Alembic was incorporated in 1907 as Alembic Chemical Works Company, primarily engaged in production of tinctures and alcohol at Baroda. Later the company set up distillery plant for pharmaceutical purposes at Baroda. It started manufacturing of cough syrup, vitamins, tonics and sulphur drugs....

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed -1.51%-2.36%7.11%13.3%9.53%8.14%8.44%8.57%9.35%20.59%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 20212117915414412814712512473.7
Y-o-Y Gr. Rt.--40.2%48.4%-14.3%-6.3%-11.4%15.4%-14.9%-1.2%-40.5%
Adjusted EPS (Rs.) -0.37-0.40.431.10.90.931.131.311.563.58
Y-o-Y Gr. Rt.-NANA155.8%-18.2%3.3%21.5%15.9%19.1%129.5%
Book Value per Share (Rs.) 6.686.227.718.649.913.0413.7716.816.0618.81
Adjusted Net Profit -9.9-10.711.629.32424.830.134.940.192
Net Op. Cash Flow (Rs. Cr.) 15.2-59.180.3-10.2229.751.623.721.56.1
Debt to Cash Flow from Ops 4.47-1.750.31-2.11000000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Alembic Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -10.6%-12.5%-20.6%-40.5%
Adjusted EPS NA31.8%46.9%129.5%
Book Value per Share 12.213.71117.1
Share Price 33.6% 22.3% 24.3% 118.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) -3.77-5.255.7413.449.718.118.418.559.3220.54
Operating Profit Margin (%) 1.52-1.978.8117.955.974.74.568.8414.624.86
Net Profit Margin (%) -4.9-8.846.4519.0916.6919.4820.4627.8432.39124.83
Debt to Equity 0.380.620.120.09000000
Working Capital Days 591485342389440404248219176259
Cash Conversion Cycle 24123714116723925916813182109
Entity Percentage Holding
Promoters 70.88%
Institutions 5.94%
Non-Institutions 23.18%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Alembic Ltd's performance infers:

Alembic Ltd earnings have grown by 31.8%, whereas share price has appreciated 22.3% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Alembic Ltd share prices over the last 10 years. Here is what we found out:

Alembic Ltd share price has appreciated 26% annually over the past ten years.

Alembic was incorporated in 1907 as Alembic Chemical Works Company, primarily engaged in production of tinctures and alcohol at Baroda. Later the company set up distillery plant for pharmaceutical purposes at Baroda. It started manufacturing of cough syrup, vitamins, tonics and sulphur drugs.

In 1952, the company set up its research and development activity. Currently the company has developed research activity in area of chemistry, microbiology, pharmaceutical technology and

Alembic was incorporated in 1907 as Alembic Chemical Works Company, primarily engaged in production of tinctures and alcohol at Baroda. Later the company set up distillery plant for pharmaceutical purposes at Baroda. It started manufacturing of cough syrup, vitamins, tonics and sulphur drugs.

In 1952, the company set up its research and development activity. Currently the company has developed research activity in area of chemistry, microbiology, pharmaceutical technology and bio-equivalence.

The company’s manufacturing units are located in Baroda and Baddi. Company’s plant has received various certifications such as ISO-9002, ISO-14001 and ISO 27001 and also follows WHO-GMP guidelines.

The company has presence in 75 countries globally.

Business area

APIs- The Company is engaged in manufacturing of active pharmaceutical ingredients for anti-parkinsons, anti-depressants, cephalosporins, macrolides and others.

Bulk Pharmaceuticals- Under this the company manufactures bulk drugs that are phosgene based and intermediates.

Formulation- The company manufactures around 150 products under this segment in therapeutic areas such as anti-infective, cough and cold products to cardiovascular and oral anti-diabetics.

Herbal and Nutraceuticals- The company manufactures herbal and Nutraceuticals and has created brands like Isovon, Protinules, ALA-100, Diax and many more.

Alembic also provides contract research services in area of chemistry, bioequivalence and bioanalytical. It also manufactures products for animal care such as Antibiotics-injections, Analgesics, Antipyretics, antidiarrhoeals, Vitamins-Oral and injectable, Tonics and Nutritional feed supplements.

Outlook

The company has acquired API manufacturing unit of Nirayu that is located at Gujarat at a consideration of Rs 17.50 Crores.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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