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Alkali Metals Ltd. Stock Analysis

Small Cap
Evaluated by 268 users | BSE: 533029 | NSE: ALKALI |
Chemicals
Alkali Metals was incorporated on April 17, 1968 as a joint venture with APIDC.  The company commenced production of sodium metal, with an installed capacity of 125 MT. There were only a few manufacturers of sodium metal at that time and the technology was not available easily. Alkali...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 4.92%-15.01%7.87%0.31%5.11%6.07%3.92%4.75%5.21%3.71%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 65.659.361.966.168.473.358.164.971.670.9
Y-o-Y Gr. Rt.--9.7%4.5%6.7%3.6%7.1%-20.8%11.8%10.2%-1%
Adjusted EPS (Rs.) 2.88-16.584.45-2.131.142.220.731.571.710.85
Y-o-Y Gr. Rt.--675.7%NA-147.9%NA94.7%-67.1%115.1%8.9%-50.3%
Book Value per Share (Rs.) 63.3446.7750.934947.6748.4448.849.6450.2848.56
Adjusted Net Profit 2.9-16.94.5-2.21.22.30.71.61.70.9
Net Op. Cash Flow (Rs. Cr.) -10.98.26.61.29.28.34.24.56.99.4
Debt to Cash Flow from Ops -3.414.424.9430.483.582.595.124.022.612.08
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Alkali Metals Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 0.9%0.7%6.9%-1%
Adjusted EPS -12.7%-5.7%5.2%-50.3%
Book Value per Share -2.90.4-0.2-3.4
Share Price 2.8% 3.5% -12.9% 4.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 4.43-29.178.9-4.22.324.551.473.133.371.7
Operating Profit Margin (%) 11.71-13.21105.1314.0513.5612.2110.6810.379.42
Net Profit Margin (%) 4.47-28.57.32-3.291.73.091.272.462.431.23
Debt to Equity 0.580.760.630.720.670.430.430.360.350.4
Working Capital Days 250281221204185157197197194188
Cash Conversion Cycle 1321267274585266797779
Entity Percentage Holding
Promoters 69.64%
Non-Institutions 30.36%
Pledged *30.0430.0430.0430.0430.0430.0430.0430.0430.0430.04
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Alkali Metals Ltd.'s performance infers:

Alkali Metals Ltd. earnings have declined by -5.7%, whereas share price has appreciated 3.5% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Alkali Metals Ltd. share prices over the last 10 years. Here is what we found out:

Alkali Metals Ltd. share price has appreciated -6.9% annually over the past ten years.

Alkali Metals was incorporated on April 17, 1968 as a joint venture with APIDC.  The company commenced production of sodium metal, with an installed capacity of 125 MT. There were only a few manufacturers of sodium metal at that time and the technology was not available easily. Alkali Metals developed the technology for sodium metal based on in-house R&D capabilities and this was an achievement, considering various hazards in the development and manufacture of the same. It has a

Alkali Metals was incorporated on April 17, 1968 as a joint venture with APIDC.  The company commenced production of sodium metal, with an installed capacity of 125 MT. There were only a few manufacturers of sodium metal at that time and the technology was not available easily. Alkali Metals developed the technology for sodium metal based on in-house R&D capabilities and this was an achievement, considering various hazards in the development and manufacture of the same. It has a distinction of developing technology for the manufacture of sodium metal for usage in fast breeder nuclear reactors for power generation. It developed technologies for several derivatives based on sodium metal, picoline and various other cyclic compounds. In the year 1986, APIDC exited from the joint venture.

Y V S Murty and Y S R Venkata Rao are the main promoters of the company.

Currently, the company has two manufacturing facilities, unit I and II. Both the units are ISO 9001: 2000 and ISO 14001:2004 certified and have combined installed capacity of 4,400 MTPA. While unit I is engaged in the manufacture of sodium metals, organo alkali metallics, tetrazoles, amino pyridines and caters to the domestic market, unit II, a 100% EOU is engaged in the manufacture of pyridine derivatives, cyclic compounds and fine chemicals.

Business area of the company

The company is engaged in the business of manufacturing sodium derivatives, pyridine derivatives and a range of fine chemicals, based on related chemistry. 

Products

Sodium derivatives

  • Sodium Amide
  • Sodium Azide
  • Sodium Hydride
  • Sodium Methoxide
  • Sodium tertiary butoxide

Pyridine derivatives

  • Aminopyridine
  • Amino - 4 - Methylpyridine
  • Amino 6 - Methylpyridine
  • Diaminopyridine
  • Trichloropyridine

Fine chemicals

  • Phenyl - a – (2-Pyridyle) Acetonitrile
  • Phenyl Pyridyl Acetamide

Awards/ achievements

  • Best Export Performance Award” in the state for 2003-2004 from FAPCCI
  • Best technology development in research & development” in the state for 2001-2002 from FACCI
  • Certificate of Merit for the outstanding export performance” for 2001-2002 from (CHEMEXCIL) , Mumbai
  • Outstanding performance in the field of Technology” from Uppal Industries Association in 2003

Certification/ recognition

  • ISO 14001:2004 certified company
  • ISO 9001:2000 certified company
  • Export House certificate
  • In-house R&D centre recognized by Ministry of Science and Technology, Government of India
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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