Albert David . Receives 'Buy' Rating and Shows Strong Growth in Pharmaceutical Industry

Feb 05 2024 02:45 PM IST
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Albert David ., a microcap pharmaceutical company, has received a 'Buy' rating from MarketsMojo due to its positive financial performance and low Debt to Equity ratio. With an impressive ROCE and PAT growth, the stock has shown consistent growth and profitability. However, there are risks to consider, such as poor long-term growth and low confidence from domestic mutual funds.
Albert David ., a microcap pharmaceutical company, has recently received a 'Buy' rating from MarketsMOJO. This upgrade comes as the company has shown positive results for the last three consecutive quarters and has a low Debt to Equity ratio of 0 times, indicating a strong financial position.

The company's Return on Capital Employed (ROCE) for the half-year is at an impressive 21.89%, while its Profit After Tax (PAT) for the quarter has grown by 77.4% to Rs 18.72 crore. This showcases the company's consistent growth and profitability.

Technically, the stock is in a bullish range and has shown a significant improvement since November 2023, generating a return of 68.7%. The MACD and KST technical factors also indicate a bullish trend for the stock.

With a Return on Equity (ROE) of 16.6, the stock is attractively valued with a Price to Book Value of 2.3. It is currently trading at a fair value compared to its historical valuations. In the past year, the stock has generated a return of 166.26%, while its profits have increased by 70.6%. The company's PEG ratio of 0.2 further supports its attractive valuation.

In the long term, the company has outperformed the BSE 500 index, generating a return of 166.26% in the last year. This showcases its strong performance in both the long and near term.

However, there are some risks associated with investing in Albert David . The company has shown poor long-term growth, with a low annual growth rate of 1.59% in Net Sales over the last 5 years. Additionally, despite its small size, domestic mutual funds hold only 0.04% of the company, which may indicate a lack of confidence in the company's business or its current stock price.

In conclusion, Albert David . is a promising microcap pharmaceutical company with a strong financial position and consistent growth. Its recent 'Buy' rating from MarketsMOJO and attractive valuation make it a potential investment opportunity. However, investors should also consider the risks associated with the company before making any investment decisions.
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