Albert David Ltd: From Placenta to Profit Woes – The 87-Year-Old Pharma That Forgot Growth Hormone
1. At a Glance
Albert David Ltd (ADL), a Kolkata-based pharma uncle born in 1938, is best known for Placentrex—a placenta-based wonder drug. FY25 sales clocked ₹327 Cr, but profits shrunk to just ₹6 Cr, giving it a PE ratio (wait for it) of 72. Exports form 95% of revenue, yet margins are more negative than your Twitter feed. With 62% promoter holding and near-zero debt, ADL looks stable—until you see OPM at -2.6%.
2. Introduction
Picture a wise old babu pharma company from Kolkata, still running strong after Independence, partition, and three Bollywood remakes of Sholay. That’s Albert David. Once famous for being the only desi company to commercialize human placenta-based formulations (yes, literally squeezing mothers’ leftovers into revenue), it’s now stuck between heritage branding and modern-day survival.
The Kothari Group flagship has decent global exposure—35 countries, WHO tie-ups for kala-azar treatment in Africa, and a WHO GMP-approved facility in Kolkata. But financials? Let’s just say even their own drug Evacure can’t cure the margin bleed.
They’ve got a respectable portfolio of syrups, parenterals, tablets, and ointments, plus cult brands like Alamin and Siotone. And yet, FY25 showed an OPM of -3% and PAT down 91%. Basically, they exported medicines to 95% of the world but forgot to export profits home.
Should we clap for survival or cry for valuation?
3. Business Model – WTF Do They Even Do?
Albert David runs a fairly straightforward model: manufacture, sell, and pray.
Pharma formulations: Tablets, syrups, capsules, ointments. The usual chemist-shelf clutter.
Infusion solutions: IV fluids in glass and plastic bottles, with fancy “form-fill-seal” bragging rights.
Bulk drugs & herbal products: Because ayurvedic is the new “organic.”
Placenta-based drugs: Their crown jewel, Placentrex, contributes ~21% of revenue. Yes, placenta is literally their hero SKU.
WHO contracts: Supplying Sodium Stibo Gluconate (SSG) for kala-azar treatment in Africa. This keeps them globally relevant.
But here’s the twist: despite 87 years in business, ADL feels like that old uncle who still wears bell-bottoms and swears they’re “coming back in style.”
4. Financials Overview
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹70.6 Cr
₹89.4 Cr
₹74.9 Cr
-21%
-6%
EBITDA
-₹10.7 Cr
₹0.9 Cr
-₹4.8 Cr
-1,311%
-123%
PAT
₹7.9 Cr
₹18.8 Cr
-₹10.3 Cr
-58%
177%
EPS (₹)
13.9
33.0
-18.1
-58%
Swing to positive
Commentary: PAT looks green thanks to “other income” steroids (₹22 Cr). Operationally, this is like running a hospital where canteen sales make more money than surgeries.
5. Valuation – Fair Value Range Only
P/E Method: EPS TTM ₹11, PE = 72. Even AI models would call this “delusional premium.” A fairer PE band (15–25x) = ₹165–₹275.
