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 fromreal estate. What happened to the pharma dreams? Short answer: demerger. Long answer: keep reading.
2.Introduction
Founded in1907(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 whopping80%+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 inAlembic 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 CrTTM PAT:₹316 CrEPS (FY25):₹12.10Recalculated P/E:₹108 / ₹12.10 ≈8.9xDividend 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.
5.Valuation – Fair Value RANGE Only
Method 1: Sum of Parts
- Alembic Pharma Stake (28.4%)– CMP ~₹850 → Stake worth ~₹4,000 Cr
- Paushak Stake (19%)– CMP ~₹7,000 → Stake worth ~₹1,000 Cr
- Own Market Cap:₹2,781 Cr
- Real Estate Value (Est.):~₹300–400 Cr conservatively
- Discount for Holding Co:35%
→ Implied NAV: ₹5,300–5,500 Cr→ Post discount: ₹3,500–3,600 Cr→ FV per share:₹135–₹140
Method 2: PE Method
- EPS: ₹12.10
- P/E Range: 10x–12x
- FV: ₹121 – ₹145
| Method | FV Range (₹) |
|---|---|
| SoTP | 135 – 140 |
| PE-Based | 121 – 145 |
“This FV range is for educational purposes only and is not investment advice.”
6.What’s Cooking – News, Triggers, Drama
- Q1FY26 Net Profit:₹62 Cr, OPM 39%, still riding high on rental + sales.
- Leadership Change:Malika Amin steps down in Jan 2026; Udit Amin takes over.
- Litigation Update:SC disposed IT Dept’s appeals — clean chit = good news for legacy books.
