Shares of this micro-cap stock jumped 14 percent in Wednesday’s trading session after the company reported a stellar Q2 financial performance. In the past six months, the company’s stock has delivered more than 35 percent to its stakeholders.
With a market capitalization of Rs 178 crores, the stocks of Alpa Laboratories Limited opened their trading hour on Wednesday at Rs 81.39 and currently trades at Rs 84.65, gaining approximately 14 percent compared to the previous closing levels of Rs 74.29 apiece.
Such sharp stock price movements were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced the financial results for the quarter ended September 2023.
On a sequential basis, the company successfully increased its operating revenues as well as after-tax profit numbers with the former moving up from Rs 25.42 crores during Q1FY23-24 to Rs 32.39 crores during Q2FY23-24, and, the latter, during the same period, rising from Rs 3.03 crores to Rs 5.78 crores.
Moreover, the company, on a yearly basis, has shown a drastic increase in the metrics mentioned above with the operating revenues increasing from Rs 13.54 crores during Q2FY22-23 to Rs 32.39 crores during Q2FY23-24, and, the after-tax profits, keeping the timeframe the same, moving up from Rs 20.20 lakhs to Rs 5.78 crores representing an increase of around 2,795 percent.
In the past couple of financial years, the company’s profitability ratios, due to increased cost pressure, reduced with the return on equity (RoE) shifting down from 12.29 percent during FY21-22 to 9.82 percent during FY22-23, and, the return on capital employed (RoCE), during the same period, declining from 16.81 percent to 12.19 percent.
As per the shareholding data available for the quarter ended September 2023, the company’s Promoters hold a 57.29 percent stake followed by the Public (retail) investors holding a 42.6 percent stake in the company.
Alpa Laboratories Limited is a pharmaceutical company based in India that operates in the business segment of chemicals and drugs. The company’s product portfolio includes liquid injections, tablets, ointments, capsules, etc.
Written by Amit Madnani
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