Positional trading

POSITIONAL TRADING: ALEMBIC PHARMA SHARE PRICE

The stock for today is Alembic Pharma.

Now, let’s talk about the business details of Alembic Pharma.

BUSINESS ANALYSIS     

Alembic Pharma is an Indian multinational Pharmaceutical company headquartered in Vadodara city of Gujarat- India.

Alembic Pharma is involved in manufacturing of Pharmaceutical products, Pharmaceutical substances and intermediates.

Alembic Pharma initially began as Alembic Chemical Work where it started manufacturing tincture and alcohol and the company eventually entered into manufacturing cough syrups, vitamins, tonics and Sulphur drugs.

It also offers international and domestic formulation, with branded and generic formulation being under its domestic formulations.      

In 2015, Alembic Pharma received Thomson Reuters Top 50 Innovators Award.

Forbes included Alembic Pharma in ‘India’s super 50 companies in 2016 list.

Their major businesses include, Pharmaceutical, healthcare, engineering, chemicals and glassware production.

 In 2010,the group demerged its Pharmaceutical business, thereby making it a separate entity called Alembic Pharmaceutical Ltd.

Now, coming to the financials of Alembic Pharma.

FINANCIAL ANALYSIS   

The Market Capitalization of Alembic Pharma share is Rs 17,871 Cr.       

The price to earnings ratio of Alembic Pharma shares is 17.2 which is lesser than the industry price to earnings ratio of 32.4.

The value of P/E is moderately lesser which means the returns are favorable.

The Alembic Pharma share has a return on capital employed of 26.0% which is also super and there is a sign of a successful growth by the company.

Alembic Pharma has a return on equity of 28.2% which states the returns investors will get when a certain amount would be invested by them in this share.

The company has a debt to equity ratio of 0.10 which indicates that the company has been reducing its debt and will be debt free in near future.

Alembic pharma share is also paying a healthy dividend of 21.28%.

Debtor days have improved from 45.83 to 23.59 days.

Based on market capitalization, Alembic Pharma stands tall at 2nd position and operates in the Pharmaceuticals sector.

From the last quarter (March 2021) to this quarter (June 2021), the sales of Alembic Pharma have increased from Rs 1280Cr to Rs 1326 Cr.

The earning per share of the company is Rs 8.37.

From the last 3 years (Mar 2019, Mar 2020, Mar 2021) the operating profit also increased from Rs 874 Cr to Rs 1558 Cr.

In the year 2021, the net profit of Alembic Pharma has increased from Rs 1178 Cr to Rs 829 Cr in the year 2020.

The share capital of the company is Rs 39 Cr.

In the year 2021, the reserves have increased to Rs 5088 Cr from Rs 3182 Cr in the year 2020, which shows the massive interest of investors into the company.  

The net cash flow of the company is Rs 26 Cr as of year ended 2021.

Promoters have a holding of 69.48% till June 2021. 

The Flls have a 6.41% holding. 

The Dlls have a 11.25% holding while only 12.86% is with the public 

The company is in safe hands and their growth is tremendous.   

This is a brief overview of the financials of the Alembic Pharma which showcases the dominance in their respective market. 

Now, let’s deep dive into the technical of Alembic Pharma shares.

Technical analysis is one of the important factors of investing and trading which consists of technical chart patterns and technical indicators. The technical indicators like moving average and super trend helps to make an investors judgement more prominent.

CHART PATTERN ANALYSIS   

If we take a closer look at the chart in a daily time frame, there is a formation of bull flag pattern.

Alembic pharma share price has been consolidating for a long time and is trading near its support area. There will be a massive rally once the consolidation phase gets completed.

The Alembic pharma share price on 27th July 2021 is Rs 909 which would definitely change in the upcoming future. 

MOVING AVERAGE 

For Alembic pharma share price analysis, we are taking 9 days and 21 days moving average. 

The 9 days moving average has crossed the 21 days moving average in downward direction. There is some weakness in the stock for the current phase, but the financials are superb and hence the conviction for this stock has not reduced.

The red line highlights the 9 days moving average while blue indicates the 21 days moving average.

SUPER TREND   

In the above chart, the super trend is indicating a selling signal. With such good financials the Alembic pharma share price is bound to bounce back and achieve its desired targets.

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