Alembic Pharma (APLLTD)

FairStock Score: 58/100 — STEADY

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear two hats here: Graham's demand for margin of safety and Buffett's preference for durable economics. Alembic Pharma at ₹831.25, market cap ₹16,339 Cr, trades at P/E 23.58 and P/B 2.88. Book value is ₹288.70, ROE 12.12%, ROCE 13.05%. That is not a franchise-grade return; it is steady but not exceptional. With ROCE at 13.05%, I cannot assume a wide moat. Debt/equity 0.25 is conservative, and Altman Z-score 3.16 plus Piotroski 7/9 suggest the balance sheet is not fragile. Promoter holding 69.74% aligns skin in the game. Growth is mixed: latest quarter sales ₹1,876 Cr and net profit ₹132 Cr; recent sales growth 25.70% and profit growth 12.10%, yet five-year revenue CAGR is only 7.69%. So the recent spurt has not yet become a long runway. Cash flow is a red flag: FCF -₹480 Cr. A business can invest for the future, but negative free cash flow with EV/EBITDA 89.63 leaves little room for error. Dividend yield 1.44% is modest. Valuation is my biggest hurdle. Graham Number is ₹435.98, so at ₹831.25 I get a margin of safety of -63.13%—I am paying a large premium to conservative intrinsic value. The 52-week range ₹635.80–₹998.00 shows volatility. FairStock 58/100 STEADY fits a Stalwart, not a fast grower. I would want either ROCE improving toward high teens, positive FCF, or a price closer to Graham Number before calling it a bargain. Until then, it is a watchlist business, not a buy.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer