Alembic Limited

Real Estate — Real Estate - Development · NSE

₹97.60+₹1.47 (+1.53%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

The 60-second version of Alembic Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Alembic Limited engages in real estate business in India and internationally. It operates through Active Pharmaceutical Ingredient (API) and Real Estate segments.

IndustryReal Estate - Development

SectorReal Estate

Employees261

Annual revenue₹230 Cr

How does it make money?

Turns over ₹230 Cr a year. Of every ₹100 of sales, about ₹138 reaches shareholders as profit, with ₹69 left at the operating level before interest, tax and depreciation. Each of its 261 employees supports ₹88.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹88.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 6.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE10.3%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +94% while net margin moved -14% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+94%

Margin effect-14%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.68 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

74/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

80/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

7.8x

3Y Median

10.6x

40 monthly readings · mean 10.4x · range 5.9x–19.2x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 26% below its 3y median of 10.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 74% below the peer median of 30.2x.

vs. its own history

Cheap

10.6x median over 40 months · -26%

vs. sector peers

Cheap

30.2x median of 3 peers · -74%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

15.8x

PEG

0.42

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 233% over 3 years.
Return on equity is rising
ROE has improved from 9.2% to 13.0%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 16.4 points, from 85.5% to 69.1%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 26% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 74% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹43 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 85.5% to 69.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 19% a year✓ 24.8% CAGR
Latest reported year was -2.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 67%✓ 69.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹43 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 6.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹2,506 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.8x

Cheap

Cheap against the generic band

P/B Ratio

1.02x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹12.48

Profitable

Profitable on a per-share basis

ROE

13.0%

Moderate

Moderate capital efficiency

ROCE

6.1%

Weak

Low return on total capital employed

Debt/Equity

0.43x

Low

Conservative leverage

Revenue Growth (YoY)

-2.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

5.4%

Modest

Slow profit growth

Dividend Yield

2.46%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹43 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

2.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

24.6%

Good

Healthy core-business profitability

Net Margin

134.2%

Good

Strong bottom-line conversion

Current Ratio

1.95

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.68

Defensive

Steadier than the market

52W Range Position

57%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

103.0 / 99.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

25.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹118 Cr	₹147 Cr	₹211 Cr	₹230 Cr	+24.8%
EBITDA	₹101 Cr	₹108 Cr	₹162 Cr	₹159 Cr	+16.2%
EBITDA Margin	85.5%	73.3%	76.7%	69.1%	—
PAT (Net Profit)	₹191 Cr	₹269 Cr	₹311 Cr	₹317 Cr	+18.5%
EPS	₹7.42	₹10.46	₹12.1	₹12.36	+18.5%
ROE	9.2%	12.3%	13.3%	13.0%	—
ROCE	4.1%	4.6%	6.6%	6.1%	—
Total Debt	—	₹9 Cr	₹14 Cr	₹11 Cr	—
Free Cash Flow	₹13 Cr	-₹34 Cr	₹36 Cr	₹43 Cr	+49.3%

🟢 Revenue has grown at 24.8% a year over 3 years.

🟢 EBITDA has grown at 16.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 85.5% to 69.1% over 3 years (-16.4 pts).

🟢 PAT (Net Profit) has grown at 18.5% a year over 3 years.

🟢 EPS has grown at 18.5% a year over 3 years.

🟢 ROE has risen from 9.2% to 13.0% over 3 years (+3.8 pts).

🟢 ROCE has risen from 4.1% to 6.1% over 3 years (+2.0 pts).

🟢 Free Cash Flow has grown at 49.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,590 Cr

Total Liabilities

₹144 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹120 Cr

Capex

-₹77 Cr

Shareholding (proxy)

Institutional Holding

0.8%

Insider Holding

72.8%

Corporate Actions

Dividend Rate

₹2.4

Ex-Dividend Date

04 Aug 2026

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

1 positive5 mixed

Alembic Pharma shares plunge 9% on soft Q4 results, weak margins drag

Business Standard, 18 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Why Is Alembic Share Price Falling: Key Reasons and Investor Analysis 2026

Univest, 14 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Alembic Pharma shares gain after Canada venture investment

Moneycontrol.com, 08 JunPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Alembic Pharmaceuticals shares jump 3% as US FDA tentatively approves Larotrectinib capsules

Upstox, 11 JunPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Alembic Limited shareholders approve FY26 results, dividend with near-unanimous support

scanx.trade, 11 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Alembic Share Analyst Review 2026: Price Target and Outlook

Univest, 03 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Revenue growth is negative (-2.0%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Valuation

MiddlingGrowth · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑