Indore based Alpa Laboratories Ltd (BSE: 532878, NSE: Alpa) saw its shares hit a 52-week high of 52.35 in NSE and 52.45 in BSE on Thursday trading with a volume of 3,12,304 shares in NSE valued at Rs 159.65 cr while in BSE the volumes achieved were Rs 71.28 lakh.
The company was established in 1967 and produces a variety of medicines for human and veterinary purposes including ethical, generic and over the country (OTC) and finished dosage forms. It is WHO-GMP certified and ISO-9001:2000 compliant.
The company has reported a net profit of Rs 9.3 cr in 2016-17 as against Rs 6.34 cr profits in the previous year while expenses have risen from Rs 49.07 cr to Rs 63.37 cr. The debt levels have falleb from Rs 24.2 cr to Rs 9.7 cr in the past 12 months inclusive of current and long-term debt. Cash reserves of Rs 35.6 cr inclusive of short term investments that can be utilised for business. Cash flow of 1.43 cr will enable it meet debt obligations and is able to generate good cash form its debt capital, analysts said.
Q2 results were encouraging with net profit of Rs 2.32 cr representing a growth of 853.29% annualised and sales rising 26.89% to Rs 15.28 cr. On a returns perspective, 63.59% monthly, 78.66% quarterly and 61.82% yearly scores well above Nifty and industry average. It is trading at a PE of 16.67 indicative of moderate pricing by market.
Technical View: RSI of 81.80 indicates bullish, oversold trend, MACD has witnessed bullish crossover suggestive of buying and ADX of 26 indicates range bound trading.