MarketsMOJO Downgrades Alembic Pharmaceuticals to 'Hold' Despite Strong Financial Performance

Alembic Pharmaceuticals, a largecap company in the pharmaceuticals and drugs industry, has recently been downgraded to a 'Hold' by MarketsMOJO. This decision was based on various factors, including the company's high management efficiency with a ROCE of 17.56%, indicating a strong ability to generate profits from its capital.
Additionally, Alembic Pharmaceuticals has a low Debt to EBITDA ratio of 0.80 times, showcasing its ability to service its debt. The company has also declared positive results for the last 6 consecutive quarters, with its operating cash flow at a high of Rs 803.20 Cr and a PAT of Rs 493.37 Cr, showing a growth of 24.87%. Its ROCE for the half-year is also at a high of 12.91%.

Technically, the stock is in a mildly bullish range, with multiple factors such as MACD, KST, DOW, and OBV indicating a bullish trend. With a ROE of 12.8, the stock is fairly valued with a price to book value of 4.6. It is also currently trading at a discount compared to its average historical valuations.

While the stock has generated a return of 42.54% in the past year, its profits have only risen by 19.2%, resulting in a PEG ratio of 1.9. The majority shareholders of Alembic Pharmaceuticals are the promoters, indicating their confidence in the company's future prospects.

However, one area of concern is the company's poor long-term growth, with its operating profit growing at an annual rate of -3.33% over the last 5 years. This could be a potential reason for the downgrade to a 'Hold' by MarketsMOJO.

Overall, Alembic Pharmaceuticals remains a strong player in the pharmaceuticals and drugs industry, with a solid financial performance and positive outlook. However, investors may want to consider the company's long-term growth potential before making any investment decisions.