Check Before You Invest : Alkali Metals Ltd

Q: Which industry/sub-sector does Alkali Metals Ltd belong to?

Alkali Metals Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q: Is Alkali Metals Ltd a good quality company?

Alkali Metals Ltd is a quality company, based on a multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Alkali Metals Ltd undervalued or overvalued?

Alkali Metals Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 80.12, Historic Median: 41.55. Price to Book, Current: 1.81, Historic Median: 2.17. Price to Sales, Current: 0.81, Historic Median: 1.28. EV to EBITDA, Current: 17.17, Historic Median: 13.75

Q: Is Alkali Metals Ltd a good buy now?

Alkali Metals Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Alkali Metals Ltd?

Alkali Metals Ltd revenue growth is -0.6% for FY-2025, which is below its 5-year CAGR of 3.05%, indicating slower growth.

Q: Gross Profit margin of Alkali Metals Ltd?

Alkali Metals Ltd Gross profit margin which is the profit after deduction of direct costs, is -1.9% for FY-2025, which is below its 5-year median of 7.9%, indicating decreasing margins.

Q: Operating Profit Margin of Alkali Metals Ltd?

Alkali Metals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -0.91% for FY-2025, which is below its 5-year median of 10.95% indicating decreasing margins.

Q: Net Profit Margin of Alkali Metals Ltd?

Alkali Metals Ltd Net Profit Margin is -7.04% for FY-2025, is below its 5-year median of 1.36%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: -1.9, Historic Median: 7.9. Operating Profit Margin (%), Current: -0.91, Historic Median: 10.95. Net Profit Margin (%), Current: -7.04, Historic Median: 1.36

Q: Return on Asset of Alkali Metals Ltd?

Alkali Metals Ltd Return on Asset is -6.05%, which is below its 5-year historical median of 1.1%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Alkali Metals Ltd?

Alkali Metals Ltd Return on capital employed is -8.63% for FY-2025, which is below its 5-year historical median of 5.9%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Alkali Metals Ltd

Snapshot

Q.1 Which industry/sub-sector does Alkali Metals Ltd belong to?

Alkali Metals Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Alkali Metals Ltd a good quality company?

Alkali Metals Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Alkali Metals Ltd undervalued or overvalued?

Alkali Metals Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	80.12	41.55
Price to Book	1.81	2.17
Price to Sales	0.81	1.28
EV to EBITDA	17.17	13.75

Q.4 Is Alkali Metals Ltd a good buy now?

Alkali Metals Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Alkali Metals Ltd?

Alkali Metals Ltd revenue growth is -0.6% for FY-2025, which is below its 5-year CAGR of 3.05%, indicating slower growth.

Q.2 Gross Profit margin of Alkali Metals Ltd?

Alkali Metals Ltd Gross profit margin which is the profit after deduction of direct costs, is -1.9% for FY-2025, which is below its 5-year median of 7.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of Alkali Metals Ltd?

Alkali Metals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -0.91% for FY-2025, which is below its 5-year median of 10.95% indicating decreasing margins.

Q.4 Net Profit Margin of Alkali Metals Ltd?

Alkali Metals Ltd Net Profit Margin is -7.04% for FY-2025, is below its 5-year median of 1.36%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	-1.9	7.9
Operating Profit Margin (%)	-0.91	10.95
Net Profit Margin (%)	-7.04	1.36

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Alkali Metals Ltd?

Alkali Metals Ltd Return on Asset is -6.05%, which is below its 5-year historical median of 1.1%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Alkali Metals Ltd?

Alkali Metals Ltd Return on capital employed is -8.63% for FY-2025, which is below its 5-year historical median of 5.9%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Alkali Metals Ltd?

Alkali Metals Ltd Return on equity is -12.31% for FY-2025, which is below its 5-year historical median of 2.2%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Alkali Metals Ltd?

Alkali Metals Ltd Cash conversion cycle is 111 days, above its 5-year historical median of 100 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.86	0.86
ROE (%)	-12.31	2.2
ROCE (%)	-8.63	5.9
Cash Conversion Cycle	111 days	100 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Alkali Metals Ltd?

Alkali Metals Ltd Debt-to-Equity ratio is 0.42, which is above the industry average of 0.13, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Alkali Metals Ltd?

Alkali Metals Ltd Debt to cash flow from operations is 3.34, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Alkali Metals Ltd?

Q.1 Promoter shareholding and pledge status of Alkali Metals Ltd?

Promoters hold 69.59% of the Alkali Metals Ltd, with 30.06% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Alkali Metals Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Alkali Metals Ltd vs industry peers?

Alkali Metals Ltd revenue CAGR is 3.05%, compared to the industry median CAGR of 7.53%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-0.6	7.5
Gross Profit Growth (%)	-124.1	12.1
Operating Profit Growth (%)	-109.1	11.7
Net Profit Growth (%)	-613.3	9.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.86	0.93
ROE (%)	-12.31	10.17
ROCE (%)	-8.63	12.96
Cash Conversion Cycle (days)	110.79	62

Valuation & price assessment

Q.1 Stock return of Alkali Metals Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 5.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	5.5%	3.7%	-10.3%	-29.6%

Q.2 Valuation ratios of Alkali Metals Ltd vs historical?

The current P/E ratio of 80.12 is higher than its historical median of 41.55, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	80.12	41.55	28.17
Price to Book	1.81	2.17	2.22
Price to Sales	0.81	1.28	1.93
EV to EBITDA	17.17	13.75	14.20

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Check Before You Invest : Alkali Metals Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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