Alembic Ltd: ₹311 Cr in Net Profit + 116-Year Legacy – But Is This Real Estate Reroll or Just Dividend-Fueled Drama?
1. At a Glance 🧱
Alembic Ltd is the classic Bollywood villain of corporate strategy — once a pharma pioneer, now plotting multi-sector domination across real estate, dividends, and investment holdings. With ₹2,781 Cr market cap and a juicy 2.2% dividend yield, it looks cheap at 8.8x earnings. But wait — 80% of FY24 revenue now comes from real estate. What happened to the pharma dreams? Short answer: demerger. Long answer: keep reading.
2. Introduction
Founded in 1907 (yes, before Independence, and before WiFi), Alembic Ltd is what you get when a legacy pharma company finds real estate more profitable than tablets. After demerging its formulations business into Alembic Pharma in 2010, Alembic Ltd took a turn — quite literally — towards cement, bricks, and rental income.
Fast-forward to FY25: the real estate segment now contributes a whopping 80%+ of revenue. Meanwhile, the real juicy stuff (28.4% stake in Alembic Pharma and 19% in Paushak Ltd) sits quietly in the portfolio like a power-up button the market forgets to click. Add a net profit of ₹316 Cr, most of which comes from “other income”, and you’re looking at a holding company cosplaying as a developer.
3. Business Model (WTF Do They Even Do?)
Alembic Ltd = ✅ Real Estate – Residential & commercial projects + leasing (80% of FY24 revenue). ✅ Investments – Stakes in Alembic Pharma (₹1,000+ Cr) & Paushak Ltd (₹800+ Cr). ✅ Power Assets – Minor revenue here, largely ignorable unless you’re into transformer trivia.
So technically, it’s a holding company with operating arms in real estate and a steady flow of dividends, profits, and litigation wins. Less of a “build skyscrapers” company and more of a “sit on goldmine and collect rent” strategy.
4. Financials Overview
TTM Revenue: ₹221 Cr TTM PAT: ₹316 Cr EPS (FY25): ₹12.10 Recalculated P/E: ₹108 / ₹12.10 ≈ 8.9x Dividend Yield: 2.2% Other Income FY25: ₹77 Cr (25% of PAT)
This is the kind of P&L where you realize the actual “business” of the business isn’t just real estate — it’s holding on to investments and monetizing slowly. Oh, and thanks to legacy pharma holdings, they’ve got other income covering for any dull quarter.
