Alfa Ica Reports Strong Returns Amid Mixed Long-Term Financial Indicators

Alfa Ica (India), a microcap player in the Wood & Wood Products industry, has shown notable performance metrics recently. The company boasts a return on capital employed (ROCE) of 8.5, indicating a favorable valuation with an enterprise value to capital employed ratio of 1.4. Over the past year, Alfa Ica has generated impressive returns of 56.37%, alongside a profit increase of 24.8%. The company's price-to-earnings growth (PEG) ratio stands at 0.9, suggesting that it is trading at a discount compared to its historical valuations.
Despite these positive indicators, Alfa Ica faces challenges in long-term fundamental strength, with an average ROCE of 8.72%. The company has experienced modest growth in net sales, averaging 5.38% annually, and operating profit growth of 11.99% over the last five years. Additionally, a high debt-to-EBITDA ratio of 4.03 times raises concerns about its ability to service debt. The most recent financial results for September 2024 were flat, and the debtors turnover ratio is at its lowest, recorded at 5.47 times.