Alfa Ica (India) Ltd is Rated Sell

Current Rating Overview

MarketsMOJO currently assigns Alfa Ica (India) Ltd a 'Sell' rating, reflecting a cautious stance towards the stock. This rating was revised from 'Strong Sell' on 22 December 2025, accompanied by a modest improvement in the Mojo Score from 26 to 31. Despite this positive shift, the recommendation remains negative, signalling that investors should approach the stock with prudence given prevailing market and company-specific conditions.

Here’s How Alfa Ica Looks Today

As of 03 January 2026, Alfa Ica (India) Ltd is classified as a microcap company operating within the Plastic Products - Industrial sector. The stock has shown mixed performance in recent periods, with a one-day gain of 2.29% and a one-month increase of 12.65%. However, longer-term returns remain subdued, with a one-year decline of 8.16%, underperforming the broader BSE500 index, which has delivered 5.35% over the same period.

Quality Assessment

The company’s quality grade is rated below average, reflecting concerns about its fundamental strength. Alfa Ica’s average Return on Capital Employed (ROCE) stands at 8.07%, which is modest and indicates limited efficiency in generating returns from its capital base. Over the past five years, net sales have grown at an annualised rate of 10.16%, while operating profit has expanded at a slower pace of 3.98%. This disparity suggests challenges in converting revenue growth into meaningful profitability gains.

Valuation Perspective

Valuation metrics for Alfa Ica are currently very attractive, signalling that the stock is priced at a discount relative to its earnings and asset base. This valuation appeal may entice value-oriented investors seeking opportunities in microcap stocks. However, attractive valuation alone does not offset the risks posed by the company’s operational and financial challenges.

Financial Trend and Stability

The financial grade for Alfa Ica is flat, indicating a lack of significant improvement or deterioration in recent financial trends. The company’s ability to service debt remains a concern, with a high Debt to EBITDA ratio of 4.03 times, suggesting elevated leverage and potential liquidity risks. Additionally, operating cash flow for the fiscal year is at a low ₹1.87 crores, while the debtors turnover ratio for the half-year stands at a weak 0.57 times, pointing to inefficiencies in receivables management.

Technical Outlook

From a technical perspective, the stock is mildly bearish. While short-term price movements have shown some positive momentum, including a 3.48% gain over the past week, the overall trend lacks strength. This technical grade reflects caution among traders and investors, who may be awaiting clearer signals before committing to the stock.

Market Performance Relative to Peers

Alfa Ica’s underperformance relative to the broader market is notable. Despite the BSE500 index generating a 5.35% return over the last year, the stock has declined by 8.16%. This divergence highlights the challenges faced by the company in delivering shareholder value compared to its peers and the wider market environment.

What the 'Sell' Rating Means for Investors

The 'Sell' rating assigned to Alfa Ica (India) Ltd by MarketsMOJO suggests that investors should exercise caution with this stock. It indicates that the company currently faces challenges in quality, financial health, and technical momentum that outweigh the benefits of its attractive valuation. Investors may consider reducing exposure or avoiding new positions until there is clearer evidence of improvement in fundamentals and market sentiment.

In summary, while Alfa Ica shows some positive signs such as valuation appeal and short-term price gains, the overall assessment points to persistent risks. The company’s below-average quality, flat financial trend, and mildly bearish technical outlook justify the cautious stance. Investors should closely monitor developments in the company’s operational performance and debt management before revisiting their investment thesis.

Key Metrics at a Glance (As of 03 January 2026)

• Mojo Score: 31.0 (Sell Grade)


• Market Capitalisation: Microcap


• Return on Capital Employed (ROCE): 8.07%


• Debt to EBITDA Ratio: 4.03 times


• Operating Cash Flow (Annual): ₹1.87 crores


• Debtors Turnover Ratio (Half Year): 0.57 times


• 1-Year Stock Return: -8.16%


• BSE500 1-Year Return: +5.35%

These figures provide a snapshot of the company’s current financial and market position, reinforcing the rationale behind the 'Sell' rating.

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