Alkali Metals Ltd. (ALKALI) AI Stock Analysis

• Market Cap: ₹626.22M
• Dividend Yield: 0.62%
• Average Volume (3M): 13.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: 2.98%
• EPS Growth: 38.45%
• Country: IN
• Employees: 107
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -1.37
• Shares Outstanding: 10,182,506
• 10 Day Avg. Volume: 9,977
• 30 Day Avg. Volume: 13,270
• PEG Ratio: 0.02
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 20.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: ₹61.00 ▼(-24.66% Downside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is weighed down primarily by deteriorating profitability and revenue trends, reinforced by bearish technicals (below major moving averages with negative MACD). Valuation also looks stretched due to a very high P/E, with only modest support from positive operating cash flow and a stable (but moderately leveraged) balance sheet.

Positive Factors

Operating cash flow strength

Consistent positive operating cash flow is a durable foundation for the business. It supports day-to-day operations, funds working capital and selective capex without immediate external financing, and provides a buffer while management addresses profitability, improving long-term resilience.

Balance sheet: stable equity ratio

A stable equity ratio indicates a meaningful capital cushion that supports solvency and credit access. This structural stability reduces bankruptcy risk and gives management flexibility to navigate cyclical downturns or pursue strategic investments over the medium term.

Reported revenue growth metric

A reported revenue growth figure near 8.9% suggests the company retains the ability to expand top line. Sustained sales growth, if maintained, provides a runway to restore margins and leverage fixed costs, supporting medium-term recovery in profitability and scale economics.

Negative Factors

Declining profitability and negative net income

Persistent negative net income and EBIT indicate the core business is currently loss-making, eroding retained earnings and ROE. Over the medium term this limits reinvestment capacity, may force restructuring or cost cuts, and challenges the sustainability of operations without improvement.

Moderate leverage / debt-to-equity risk

A moderately high debt-to-equity ratio raises refinancing and interest-service risk, especially if profitability remains weak. Leverage can constrain strategic choices, increase financing costs, and amplify downside in economic stress, weakening durability of the business model.

Decreasing free cash flow and FCF volatility

Declining and volatile free cash flow reduces the company's ability to fund capex, pay down debt, or sustain distributions without external financing. Over several quarters this undermines financial flexibility and increases execution risk for strategic initiatives.

Alkali Metals Ltd. Business Overview & Revenue Model

Company Description

Alkali Metals Limited manufactures and sells chemical products in India and internationally. It offers API products; pyridine, acetylpyridine, alkyl borate, aminopyridine, bipyridine, bromopyridine, chloropyridine, cyanopyridine, cyclic, diethylamino pyridine, ethoxypyridine, fluoropyridine, hydroxypyridine, methoxypyridine, nitropyridine, picolylalcohol, pyridine n-oxide, pyrimidine, tetrazole, and triazole compounds; azaindole, potassium, sodium, and other metal derivatives; and boronic acids, fine chemicals, and DSSC and OLED materials. The company's products are used in various applications, such as pharma intermediates, anti retrovirals, flu vaccines, antibiotics, cardio/anti inflammation, agrochemicals, and automobiles. Alkali Metals Limited was incorporated in 1968 and is based in Hyderabad, India.

How the Company Makes Money

Alkali Metals Ltd. generates revenue primarily through the sale of its specialty chemicals, which are sold to manufacturers in various industries, including pharmaceuticals, agriculture, and electronics. The company has established strategic partnerships with key players in these sectors, allowing it to secure long-term contracts and consistent orders. Additionally, ALKALI benefits from research and development initiatives that lead to the creation of new products, enhancing its market position and opening up new revenue streams. The company also engages in export activities, supplying its products to international markets, which further diversifies its income sources.

Alkali Metals Ltd. Financial Statement Overview

Summary

Weak income statement trends (declining revenue and profitability with negative net income/EBIT) offset by comparatively better cash flow resilience (positive operating cash flow) and a balance sheet that is stable but carries moderate leverage risk.

Income Statement

Alkali Metals Ltd. has faced declining revenue and profitability over the recent years. The gross profit margin has decreased, and the company reported a negative net income and EBIT in the latest period, indicating operational challenges. The revenue growth rate has been negative, reflecting a significant downturn in sales performance.

Balance Sheet

The company's balance sheet shows a stable equity ratio, indicating a reasonable level of financial stability. However, the debt-to-equity ratio is moderately high, suggesting potential leverage risk. The return on equity has turned negative, reflecting recent profitability issues.

Cash Flow

Alkali Metals Ltd. has maintained a positive cash flow from operations, which is a positive signal. However, the free cash flow has decreased, and the free cash flow to net income ratio is volatile due to fluctuating profitability. The operating cash flow to net income ratio remains strong, indicating effective cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	882.74M	823.30M	828.56M	882.33M	910.16M	553.77M
Gross Profit	356.38M	327.69M	130.64M	157.32M	507.55M	323.94M
EBITDA	17.54M	-14.89M	86.96M	106.83M	114.73M	60.12M
Net Income	-36.28M	-58.00M	11.29M	29.13M	34.81M	-12.07M
Balance Sheet
Total Assets	0.00	929.36M	1.09B	1.06B	995.19M	974.71M
Cash, Cash Equivalents and Short-Term Investments	6.15M	6.19M	383.00K	13.32M	20.09M	4.78M
Total Debt	0.00	179.16M	228.42M	238.20M	178.90M	219.13M
Total Liabilities	-445.25M	484.12M	580.27M	526.63M	474.37M	481.02M
Stockholders Equity	445.25M	445.25M	513.46M	528.67M	520.83M	493.69M
Cash Flow
Free Cash Flow	0.00	41.28M	45.59M	80.46M	82.94M	-22.79M
Operating Cash Flow	0.00	54.38M	62.90M	111.90M	111.94M	13.17M
Investing Cash Flow	0.00	-7.47M	-16.36M	-31.40M	-28.44M	-35.17M
Financing Cash Flow	0.00	-46.88M	-57.13M	-89.61M	-68.19M	709.00K

Alkali Metals Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 80.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ALKALI, the sentiment is Negative. The current price of 80.97 is above the 20-day moving average (MA) of 69.22, above the 50-day MA of 73.43, and below the 200-day MA of 87.27, indicating a bearish trend. The MACD of -2.18 indicates Positive momentum. The RSI at 26.10 is Positive, neither overbought nor oversold. The STOCH value of 5.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ALKALI.

Alkali Metals Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PASUPTAC	74 Outperform	₹4.48B	4.61	―	―	36.99%	10.60%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CHEMCON	57 Neutral	₹5.77B	36.57	―	―	2.76%	30.68%
LORDSCHLO	54 Neutral	₹3.09B	23.33	―	―	39.31%	―
ALKALI	47 Neutral	₹626.22M	-14.73	―	0.62%	2.98%	38.45%
KANORICHEM	45 Neutral	₹2.90B	23.83	―	―	-1.30%	-27.85%
DIAMINESQ	43 Neutral	₹2.26B	-19.09	―	0.38%	―	―