Alembic's Q3 Financial Results Show Positive Growth, But Reliance on Non-Business Activities Raises Concerns

Alembic, a smallcap pharmaceutical company, has recently declared its financial results for the quarter ending September 2024. The company has shown a very positive performance in this quarter, with a score of 21 out of 25, an improvement from 15 in the last 3 months.

One of the key factors contributing to this positive performance is the growth in Profit Before Tax (PBT) less Other Income, which has increased by 98.90% year on year. The company has also seen a steady growth in Net Sales, with the highest recorded at Rs 52.91 crore in this quarter. This is a 63.91% increase from the same quarter last year.

The company's Profit After Tax (PAT) has also shown a positive trend, with the highest recorded at Rs 121.02 crore in the last five quarters. This is a 33.5% increase from the same quarter last year. Alembic's Earnings per Share (EPS) have also been on the rise, with the highest recorded at Rs 4.71 in the last five quarters. This indicates an increasing profitability and higher earnings for shareholders.

However, there are some areas that need improvement for Alembic. The company's Non Operating Income is 80.17% of its PBT, indicating a high reliance on non-business activities. This may not be a sustainable business model in the long run. Additionally, the company's Non Operating Income has also seen a significant increase in the last five quarters, which may not be sustainable.

Overall, Alembic has shown a strong financial performance in the quarter ending September 2024. However, investors are advised to hold their stocks, as the company's reliance on non-business activities and the sustainability of its increased income from such activities may be a cause for concern.