Recent Price Movement and Market Context
On 26 Feb 2026, Alembic Pharmaceuticals Ltd. closed at Rs.725.45, down 1.28% on the day and underperforming the Pharmaceuticals & Biotechnology sector by 1.89%. This marks the third consecutive day of decline, with the stock losing 5.44% over this period. The current price is substantially below its 52-week high of Rs.1,107.80, representing a drop of approximately 34.5% from that peak.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. In contrast, the Sensex, despite a volatile session where it fell 170.17 points to 82,248.61, remains within 4.75% of its own 52-week high of 86,159.02. The Sensex is trading below its 50-day moving average, though the 50DMA remains above the 200DMA, suggesting a mixed but relatively stable market backdrop.
Financial Performance and Valuation Concerns
Over the past year, Alembic Pharmaceuticals Ltd. has delivered a total return of -7.96%, underperforming the Sensex’s 10.25% gain over the same period. The company’s long-term growth trajectory has been subdued, with operating profit declining at an annualised rate of -8.78% over the last five years. This trend has contributed to the stock’s current valuation challenges.
Recent quarterly results have been flat, with earnings per share (EPS) at Rs.6.77, the lowest recorded in recent quarters. The company’s inventory turnover ratio for the half-year stands at 2.79 times, which is on the lower side, potentially indicating slower movement of stock. Meanwhile, the debt-equity ratio has increased to 0.28 times, the highest in recent periods, though it remains moderate by industry standards.
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Debt and Profitability Metrics
Despite some valuation pressures, Alembic Pharmaceuticals Ltd. maintains a relatively strong ability to service its debt, with a low Debt to EBITDA ratio of 0.90 times. This suggests manageable leverage levels in relation to earnings before interest, taxes, depreciation, and amortisation.
The company’s return on capital employed (ROCE) stands at 12.6%, which is considered attractive within the Pharmaceuticals & Biotechnology sector. Additionally, the enterprise value to capital employed ratio is 2.4, indicating a valuation discount relative to peers’ historical averages. Over the past year, while the stock price has declined, the company’s profits have increased by 11.7%, resulting in a price/earnings to growth (PEG) ratio of 1.9.
Comparative Performance and Institutional Holdings
In terms of relative performance, Alembic Pharmaceuticals Ltd. has underperformed the BSE500 index over the last three years, one year, and three months. This consistent lagging performance has contributed to the current market sentiment reflected in the stock’s price.
Institutional investors hold a significant stake in the company, with 20.41% of shares held by such entities. These investors typically possess greater resources and analytical capabilities to assess company fundamentals, which may influence trading patterns and valuation assessments.
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Rating and Market Capitalisation
MarketsMOJO currently assigns Alembic Pharmaceuticals Ltd. a Mojo Score of 37.0 and a Mojo Grade of Sell, reflecting a downgrade from its previous Hold rating as of 25 Nov 2025. The company’s market capitalisation grade is rated at 3, indicating a mid-tier valuation relative to market peers.
The downgrade in rating aligns with the company’s subdued long-term growth and recent price performance, as well as its position below key moving averages and relative underperformance against sector and benchmark indices.
Summary of Key Metrics
To summarise, Alembic Pharmaceuticals Ltd. has experienced a notable decline to Rs.725.45, its lowest level in 52 weeks. The stock’s performance over the past year has been negative, with returns of -7.96%, contrasting with the Sensex’s positive 10.25% gain. Operating profit has contracted at an annualised rate of -8.78% over five years, while recent EPS figures remain subdued at Rs.6.77.
Valuation metrics such as ROCE and Debt to EBITDA ratios suggest some financial stability, but the stock’s trading below all major moving averages and its underperformance relative to sector peers highlight ongoing challenges. Institutional holdings remain significant at over 20%, reflecting continued interest from larger investors despite the recent price weakness.
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