Alpa Laboratories Receives 'Hold' Rating from MarketsMOJO, Demonstrates Strong Financial Position and Potential Undervaluation

Alpa Laboratories, a microcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown a low Debt to Equity ratio of 0 times, indicating a strong financial position. Additionally, Alpa Laboratories has demonstrated healthy long-term growth with an annual operating profit growth rate of 91.93%.
Technically, the stock is in a Mildly Bullish range and has shown improvement from a Sideways trend on 02-Aug-24. The Bollinger Band and KST technical factors also suggest a Bullish trend. With a Return on Equity (ROE) of 11.1, the stock is currently trading at an attractive valuation with a Price to Book Value of 1.3. It is also trading at a fair value compared to its historical valuations.

In the past year, Alpa Laboratories has generated a return of 20.86%, while its profits have increased by 32.8%. This gives the company a PEG ratio of 0.4, indicating a potential undervaluation. The majority shareholders of the company are the promoters.

However, the company's financial results for March 2024 were flat, with the lowest Cash and Cash Equivalents at Rs 1.71 crore and lowest Net Sales at Rs 23.61 crore. The Non-Operating Income for the quarter was also 59.70% of the Profit Before Tax (PBT).

In the last year, Alpa Laboratories has underperformed the market, with a return of 20.86% compared to the market's (BSE 500) return of 37.36%. Despite this, the company's strong financial position and potential undervaluation make it a 'Hold' for investors.