Alembic Pharmaceuticals Downgraded to 'Hold' by MarketsMOJO, Strong Performance and Potential for Growth.

Alembic Pharmaceuticals, a leading player in the pharmaceutical industry, has recently been downgraded to a 'Hold' by MarketsMOJO. This decision was based on various factors, including the company's high management efficiency with a ROCE of 17.56% and its strong ability to service debt with a low Debt to EBITDA ratio of 0.80 times.
The company has also shown positive results for the last 4 consecutive quarters, with a PAT(Q) of Rs 180.45 crore, growing at 48.0%, and a NET SALES(Q) of Rs 1,630.57 crore, the highest in its history. Its PBDIT(Q) has also reached a record high of Rs 266.37 crore.

Technically, the stock is currently in a Mildly Bullish range, with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend. Additionally, with a ROCE of 11.4, the stock is fairly valued with a 4 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations.

Over the past year, the stock has outperformed the market (BSE 500) with a return of 85.57%, while its profits have risen by 162.5%. This is reflected in the company's low PEG ratio of 0.2, indicating its strong performance.

Furthermore, there has been an increasing participation by institutional investors in Alembic Pharmaceuticals, with a 0.83% increase in their stake over the previous quarter. These investors have better capability and resources to analyze the fundamentals of companies, making their increased interest in the company a positive sign.

However, one area of concern for the company is its poor long-term growth, with an annual rate of -4.18% for its operating profit over the last 5 years. This is something investors should keep in mind while considering their investment in the company.

Overall, Alembic Pharmaceuticals has shown a strong performance in the past year and has the potential for future growth. However, with the recent downgrade to 'Hold', investors should carefully consider all factors before making any investment decisions.