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Last Updated on: 18 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 506235 | NSE: ALEMBICLTD

Alembic Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 4:07 pm

Market Cap 3,254 Cr.
Current Price 127
High / Low169/78.1
Stock P/E10.5
Book Value 87.5
Dividend Yield1.89 %
ROCE4.81 %
ROE12.6 %
Face Value 2.00
PEG Ratio-2.64

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Alembic Ltd

Competitors of Alembic Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hampton Sky Realty Ltd 699 Cr. 25.558.8/23.427.2 5.740.00 %15.7 %10.6 % 1.00
Grovy India Ltd 96.9 Cr. 72.798.2/22.0 14.00.03 %5.79 %5.27 % 10.0
Gothi Plascon (India) Ltd 37.8 Cr. 37.153.9/28.728.9 12.45.39 %17.8 %12.9 % 10.0
Generic Engineering Construction & Projects Ltd 213 Cr. 37.471.0/32.619.1 48.70.00 %6.62 %4.37 % 5.00
Garnet Construction Ltd 57.4 Cr. 41.357.2/16.58.63 73.30.00 %4.51 %3.13 % 10.0
Industry Average18,782.64 Cr474.4249.26130.680.52%9.56%7.85%6.07

All Competitor Stocks of Alembic Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales21201918223731373732394951
Expenses17171615172620242622282530
Operating Profit434351110131110122420
OPM %20%15%19%16%25%30%34%36%30%31%30%49%40%
Other Income281241592-9348222
Interest0000000000000
Depreciation1111222222312
Profit before tax583464681131256112419
Tax %20%11%4%20%11%10%2%-55%14%8%9%12%10%
Net Profit49120521-1911546484491617256
EPS in Rs1.914.682.020.04-0.724.491.781.881.733.532.392.812.17

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 13, 2024, 3:36 pm

MonthMar 2009Mar 2010Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,0991,121144134147125124747478127157171
Expenses1,0161,01813412814011410671626487101105
Operating Profit831031067111831114405766
OPM %8%9%7%5%5%9%15%4%15%18%32%36%39%
Other Income7162125253729931089545554
Interest423210000000011
Depreciation384366543345788
Profit before tax944232527444593179887103110
Tax %-19%10%-3%2%-3%5%8%0%19%12%7%10%
Net Profit1140107235145163213329343222191269280
EPS in Rs0.391.483.998.785.456.108.3012.8213.358.657.4210.4610.90
Dividend Payout %51%17%4%2%4%3%2%5%2%21%30%23%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2009-20102015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)263.64%119.63%-38.30%12.41%30.67%54.46%4.26%-35.28%-13.96%40.84%
Change in YoY Net Profit Growth (%)0.00%-144.01%-157.92%50.71%18.26%23.79%-50.20%-39.53%21.31%54.80%

Alembic Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2009-2010 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:5%
3 Years:29%
TTM:40%
Compounded Profit Growth
10 Years:%
5 Years:5%
3 Years:-8%
TTM:30%
Stock Price CAGR
10 Years:13%
5 Years:19%
3 Years:6%
1 Year:52%
Return on Equity
10 Years:%
5 Years:14%
3 Years:10%
Last Year:13%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:44 am

MonthMar 2009Mar 2010Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital27275353535351515151515151
Reserves3043114747508581,0321,1571,3672,2462,4452,0272,1342,195
Borrowings475408090000000916
Other Liabilities209251916481735753112135127134178
Total Liabilities1,0159976198759921,1591,2661,4712,4092,6322,2052,3292,441
Fixed Assets405393169146171179209225265297321369385
CWIP7420000360010
Investments882996057329131,0011,1332,0472,2081,7541,7861,850
Other Assets59559114912489675511091127130173206
Total Assets1,0159976198759921,1591,2661,4712,4092,6322,2052,3292,441

Reserves and Borrowings Chart

Cash Flow

MonthMar 2009Mar 2010Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +12314922105224227-2-183923
Cash from Investing Activity +-56-245-5-47-226857-3519726
Cash from Financing Activity +-70-118-25-5-5-3-89-6-15-6-46-48
Net Cash Flow-272-0-0-1157-52-5-00

Free Cash Flow

MonthMar 2009Mar 2010Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-392.00-305.0010.00-3.007.0011.0018.003.0011.0014.0040.0048.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2009Mar 2010Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days7163122765474404469716746
Inventory Days1581588806594382472894112,1122,8853,694
Days Payable1121282001441281252021516936401,237
Cash Conversion Cycle117938015913641951263051,4882,316672,502
Working Capital Days125108235172392013229822311881
ROCE %7%10%4%4%4%4%7%1%4%4%5%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters70.88%70.88%70.88%70.88%70.88%70.88%70.88%70.88%70.88%70.88%70.88%70.88%
FIIs1.23%1.19%1.12%1.08%0.83%0.82%0.70%0.72%0.85%0.89%1.07%1.42%
DIIs4.89%5.17%4.69%4.29%4.12%3.94%3.94%3.93%3.40%0.04%0.04%0.04%
Public23.00%22.76%23.31%23.75%24.16%24.34%24.48%24.46%24.87%28.17%28.02%27.66%
No. of Shareholders80,56178,38180,13583,00683,61283,63082,33981,73282,94794,01299,13098,478

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Small Cap Fund10,000,0000.3981.3510,000,0002024-11-120%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)10.467.428.6513.3512.82
Diluted EPS (Rs.)10.467.428.6513.3512.82
Cash EPS (Rs.)3.923.403.550.693.75
Book Value[Excl.RevalReserv]/Share (Rs.)85.1180.9397.2389.4555.22
Book Value[Incl.RevalReserv]/Share (Rs.)85.1180.9397.2389.4555.22
Revenue From Operations / Share (Rs.)6.134.963.052.862.88
PBDIT / Share (Rs.)4.354.074.020.833.77
PBIT / Share (Rs.)4.043.813.830.673.64
PBT / Share (Rs.)4.003.383.810.663.63
Net Profit / Share (Rs.)3.623.143.360.533.62
NP After MI And SOA / Share (Rs.)10.467.428.6513.3512.82
PBDIT Margin (%)70.8882.20131.8229.03130.77
PBIT Margin (%)65.9076.91125.6023.67126.41
PBT Margin (%)65.2068.21125.1023.18126.02
Net Profit Margin (%)58.9663.35110.1918.82125.84
NP After MI And SOA Margin (%)170.56149.83283.89466.35445.19
Return on Networth / Equity (%)12.299.178.8914.9223.20
Return on Capital Employeed (%)4.634.613.830.746.55
Return On Assets (%)11.538.648.4314.2322.37
Asset Turnover Ratio (%)0.060.050.040.060.08
Current Ratio (X)1.522.052.121.723.56
Quick Ratio (X)0.490.990.830.802.78
Inventory Turnover Ratio (X)0.090.070.120.260.69
Dividend Payout Ratio (NP) (%)21.0324.242.314.491.88
Dividend Payout Ratio (CP) (%)20.4323.412.264.441.86
Earning Retention Ratio (%)78.9775.7697.6995.5198.12
Cash Earning Retention Ratio (%)79.5776.5997.7495.5698.14
Interest Coverage Ratio (X)100.70224.79265.0058.96335.70
Interest Coverage Ratio (Post Tax) (X)84.77197.06222.5239.24324.04
Enterprise Value (Cr.)2154.921520.561855.972634.71857.86
EV / Net Operating Revenue (X)13.6811.9523.7335.8411.60
EV / EBITDA (X)19.3014.5418.00123.448.87
MarketCap / Net Operating Revenue (X)13.6411.9723.7535.9212.40
Retention Ratios (%)78.9675.7597.6895.5098.11
Price / BV (X)0.980.730.741.150.64
Price / Net Operating Revenue (X)13.6411.9723.7535.9312.40
EarningsYield0.120.120.110.120.35

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Alembic Ltd as of November 18, 2024 is: 117.95

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 18, 2024, Alembic Ltd is Overvalued by 7.13% compared to the current share price 127.00

Intrinsic Value of Alembic Ltd as of November 18, 2024 is: 113.26

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 18, 2024, Alembic Ltd is Overvalued by 10.82% compared to the current share price 127.00

Last 5 Year EPS CAGR: -3.97%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1,330.77 cr) compared to borrowings (70.54 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (104.38 cr) and profit (55.77 cr) over the years.
  1. The stock has a low average ROCE of 4.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 104.50, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 222.00, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Alembic Ltd:
    1. Net Profit Margin: 58.96%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 4.63% (Industry Average ROCE: 9.56%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 12.29% (Industry Average ROE: 7.85%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 84.77
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.49
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 10.5 (Industry average Stock P/E: 49.26)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Alembic Ltd. is a Public Limited Listed company incorporated on 30/07/1907 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L26100GJ1907PLC000033 and registration number is 000033. Currently Company is involved in the business activities of Real estate activities with own or leased property. Company’s Total Operating Revenue is Rs. 75.97 Cr. and Equity Capital is Rs. 51.36 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
RealtyAlembic Road, Vadodra Gujarat 390003alembic.investors@alembic.co.in
http://www.alembiclimited.com
Management
NamePosition Held
Mr. Chirayu AminChairman
Mrs. Malika AminManaging Director & CEO
Mr. Udit AminDirector
Mr. Abhijit JoshiDirector
Mrs. Rati DesaiIndependent Director
Mr. Sameer KheraIndependent Director
Mr. Mayank AminIndependent Director
Dr. Girish HirodeIndependent Director

FAQ

What is the latest intrinsic value of Alembic Ltd?

The latest intrinsic value of Alembic Ltd as on 18 November 2024 is ₹117.95, which is 7.13% lower than the current market price of ₹127.00.

What is the Market Cap of Alembic Ltd?

The Market Cap of Alembic Ltd is 3,254 Cr..

What is the current Stock Price of Alembic Ltd as on 18 November 2024?

The current stock price of Alembic Ltd as on 18 November 2024 is ₹127.

What is the High / Low of Alembic Ltd stocks in FY 2024?

In FY 2024, the High / Low of Alembic Ltd stocks is 169/78.1.

What is the Stock P/E of Alembic Ltd?

The Stock P/E of Alembic Ltd is 10.5.

What is the Book Value of Alembic Ltd?

The Book Value of Alembic Ltd is 87.5.

What is the Dividend Yield of Alembic Ltd?

The Dividend Yield of Alembic Ltd is 1.89 %.

What is the ROCE of Alembic Ltd?

The ROCE of Alembic Ltd is 4.81 %.

What is the ROE of Alembic Ltd?

The ROE of Alembic Ltd is 12.6 %.

What is the Face Value of Alembic Ltd?

The Face Value of Alembic Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Alembic Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE