Alembic Ltd (ALEMBICLTD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ashiana Housing

EFC (I)

Alembic

Arkade

Shriram Properti

Arihant Super.

National Standar

Arvind SmartSp.

Unitech

Nxt-Infra Trust

Kesar India

Why is Alembic Ltd ?

With ROE of 12.8, it has a Very Expensive valuation with a 1 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -26.86%, its profits have risen by 4.4% ; the PEG ratio of the company is 1.8

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Below par performance in long term as well as near term

Along with generating -26.86% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Alembic for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Alembic

-26.95%

-0.76

35.58%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

32.70%

EBIT Growth (5y)

133.09%

EBIT to Interest (avg)

26.68

Debt to EBITDA (avg)

0.11

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.06

Tax Ratio

9.56%

Dividend Payout Ratio

19.84%

Pledged Shares

Institutional Holding

1.43%

ROCE (avg)

1.68%

ROE (avg)

11.41%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.02

EV to EBIT

29.47

EV to EBITDA

26.09

EV to Capital Employed

1.02

EV to Sales

11.26

PEG Ratio

1.83

Dividend Yield

2.47%

ROCE (Latest)

3.47%

ROE (Latest)

12.78%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

OPERATING CF(Y)

Highest at Rs 86.37 Cr

INVENTORY TURNOVER RATIO(HY)

Highest at 2.43 times

PBT LESS OI(Q)

At Rs 19.86 cr has Grown at 22.37%

PAT(Q)

Highest at Rs 128.49 cr.

EPS(Q)

Highest at Rs 5.00

-1What is not working for the Company

NON-OPERATING INCOME(Q)

is 76.57 % of Profit Before Tax (PBT

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Here's what is working for Alembic

Inventory Turnover Ratio- Half Yearly

Highest at 2.43 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Cash Flow - Annually

Highest at Rs 86.37 Cr

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 19.86 cr has Grown at 22.37%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 128.49 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 5.00

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Alembic

Non Operating Income - Quarterly

is 76.57 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT