Scripscan:Alkali Metals Ltd
cmp:130
Code:533029
Story:Company is profit making concern since incorporation. It has an in house Research and Development facility recognized by the Minis-try of Science and Technology, New Delhi. This facility operates through three modules, being, a laboratory for gram level operation and research, a pilot plant and a proving facility to upscale the pro-duction process from pilot plant to a commercial scale and full fledged production. Also, company manufactures over 246 prod-ucts. Many of the products manufactured by company have multiple applications and can be used in the Bulk drug, Pharma industry, agro based products etc.The company has reputed client base which include names like Dr Reddy’s Lab, Rallis India, Granules India,Porus Drugs & Inetrmediates (P) Ltd ,Azide and Allied Chemicals. Also company exports its products to companies like Allwin Asia Limited, Nihon Siber-hegner K.K,Novasep Syntheasis ,Euticals S.P.A and teva Pantex Chemicals Limited.Company faces significant competition from other players. There are a few Chinese companies producing similar products apart from Rohm and Haas, USA and Rhone Poulenc, France.Short fall or non – availability of critical inputs and any escalation in their prices could have an impact on the operations and financial condition of Company.The company at a prsent price of 130rs is quoting at a p/e multiple of 6-7 times its fy11 earnings . The company has grown with a CAGR of just 11% in topline from FY04 to FY08 while the bottomline of the company has posted a CAGR of just 6%. The company has not been able to show consistency in its financial perform-ance which has been reflected from its volatile earnings .The stock market can only show some respect to the stock price if future numbers betters the pastperformances.Hence looking at all these factors,Its a "very risky buy" meant for only high risk apetite investors.
btw:If the swine flu comes back to the scenario one can expect alkali metals to have a sentimental booster then as it manufactures sodium hydride, a compound used to make drugs that treat swine flu.It would benefit from the higher sales of sodium hybride as demand from pharma companies would pour in bigtime.
Search This Blog(Over 800 companies covered in the blog).
Archives : Old artciles
Important Disclaimer&Privacy policy
This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com
Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
