Alpa Laboratorie (ALPA)

Score breakdown: P/E: 3/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Trades below book value: P/B 0.84 against book value of ₹83.20
• Sales growth of 11.09% shows top-line momentum
• ROCE of 15.79% indicates operating capital is generating a reasonable return
• Trailing P/E of 11.91 is undemanding if earnings can stabilize
• Promoter holding of 57.29% provides ownership stability

Concerns

• Reported profit growth of -78.65% is severely negative; latest quarter net margin was only about ₹2 crore on ₹29 crore sales
• ROE of 6.76% is low, and zero dividend means no yield while waiting for a turnaround
• Piotroski F-score of 4/9 suggests weak financial health and deterioration signals
• Discount to book value can be misleading if continued weak profits erode the book value itself

AI Analysis

At ₹69.93, Alpa Laboratorie trades below book value of ₹83.20, so a Graham-style investor must stop and look. But a low P/B is only the starting point, not the conclusion. The P/E of 11.91 looks reasonable, yet the reported profit growth of -78.65% is alarming. The latest quarter shows ₹29 crore sales and just ₹2 crore net profit, a margin that would not survive a serious setback. I ask whether the business earns enough on what it owns. ROE is only 6.76%, and there is zero dividend, so shareholders are not being paid while they wait. The Piotroski F-score of 4/9 reinforces my concern about financial health. I cannot see a wide economic moat in these figures; pharmaceutical efficiency is valuable, but this return profile does not prove pricing power. On the positive side, sales grew 11.09%, and ROCE is 15.79%, showing that the operating capital is not dead. Promoter holding of 57.29% is significant, but ownership alone cannot compensate for weak earnings momentum. A price below book of ₹83.20 offers some margin of safety, but only if the book value is real and profit recovers. If earnings keep falling, book value itself will be eroded. In Buffett's terms, it's far better to buy a wonderful business at a fair price than a fair business at a wonderful price. This looks like a possible turnaround or asset play, not a compounder. I would wait for concrete evidence of margin stability and an improving F-score before putting money here.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer