✅ At a Glance
| Metric | Q4 FY24 | Q4 FY25 | YoY Change |
|---|---|---|---|
| Revenue from Ops | ₹20.9 Cr | ₹24.9 Cr | 🔼 +19% |
| Net Profit | ₹(58.0) Cr | ₹4.35 Cr | 🧨 Big turnaround |
| EPS (Basic/Diluted) | ₹(5.70) | ₹4.28 | 🚀 Positive shift |
| CMP (as of May 19, 2025) | ₹141.10 | – | – |
| Segment | Single – Specialty Chemicals | – | – |
From a full-year loss of ₹5.8 Cr to a Q4 profit of ₹4.35 Cr — something cooked up well in the lab.
🧪 About the Company
Alkali Metals Ltd. is an old-school Andhra-based manufacturer of:
- Pyridine derivatives
- Nitration products
- Specialty chemicals used in pharma, agro, and dyes.
Basically, they make chemicals that no one wants to touch — except big pharma.
They serve both exports & domestic clients, and are also ISO 9001/14001 certified (for those who care about certificates).
🧾 FY25 Summary (Standalone)
| Metric | FY24 | FY25 | YoY Change |
|---|---|---|---|
| Revenue from Ops | ₹82.3 Cr | ₹82.3 Cr | ➖ Flat |
| Other Income | ₹1.57 Cr | ₹1.57 Cr | ➖ Flat |
| Total Income | ₹83.9 Cr | ₹83.9 Cr | ➖ Flat |
| Expenses | ₹89.6 Cr | ₹89.6 Cr | ➖ Flat |
| PAT | ₹(5.8) Cr | ₹4.35 Cr (Q4) | 🚨 Turnaround in last quarter |
| EPS (FY) | ₹(5.70) | ₹4.28 (Q4) | 🚀 Positive swing |
📉 Full-year loss, but thanks to massive deferred tax benefit of ₹2.31 Cr in Q4, the bottom line flipped.
📉 FY25 P&L Q4 Deep Dive
| Item | Q4 FY25 |
|---|---|
| Revenue | ₹24.87 Cr |
| Other Income | ₹0.23 Cr |
| Total Income | ₹25.10 Cr |
| Total Expenses | ₹23.11 Cr |
| Exceptional Item | ₹0.46 Cr |
| PBT | ₹2.04 Cr |
| Deferred Tax Credit | ₹2.32 Cr |
| PAT | ₹4.35 Cr |
| EPS | ₹4.28 |
A lot of this profit came from tax accounting. Don’t drink the Kool-Aid just yet.
🧮 Forward Value (FV) Estimate
EPS is volatile, but if Q4 is sustainable:
- Annualized EPS = ₹4.28 × 4 = ₹17.12
- Sector P/E = 18x (Specialty Chemicals)
✅ FV = ₹17.12 × 18 = ₹308.16
CMP = ₹141.10
➡️ Potential Upside = ~118%
⚠️ But this assumes Q4 is new normal, not one-time miracle.
🏦 Balance Sheet Snapshot
| Item | FY25 |
|---|---|
| Equity + Reserves | ₹445.2 Cr |
| Total Assets | ₹929.3 Cr |
| Cash + Bank | ₹0.41 Cr 😬 |
| Receivables | ₹143.3 Cr |
| Borrowings | ₹179.1 Cr |
| Inventory | ₹266.9 Cr |
| D/E Ratio | 0.40x |
💣 High working capital cycle, low liquidity.
💸 Cash Flow Highlights
| Cash Flow Type | FY25 |
|---|---|
| Cash from Ops | ₹5.4 Cr |
| Capex | ₹1.3 Cr |
| Free Cash Flow | ₹4.1 Cr |
| Financing Outflow | ₹4.6 Cr |
| Ending Cash | ₹0.41 Cr |
➕ Small FCF after 3 years of negative OCF
➖ Still not enough to pay off short-term borrowings
🔍 Related Party Drama
- ₹66L paid to MD
- ₹29.7L to Executive Director
- Rent & fees to Directors and Associates = ₹40+L
- Asian Herbex & Zigna Analytics transactions = ₹40+L
Family-owned flavour with side of legacy overlaps. Classic Indian SME chaap.
⚠️ Risks
- One segment, cyclical demand
- Chemical input prices can crush margins
- Deferred tax boost is not repeatable
- Receivables + inventory = ₹410 Cr working capital lock 🔒
🧠 EduInvesting Take
“Alkali just performed a lab experiment: Turn tax into profit.”
The Q4 turnaround is legit-looking, but financially induced — not ops-led.
Still, if Q1FY26 follows up with ₹4–5 Cr PAT, this stock could see a proper re-rating.
🏁 Verdict
✔️ Q4 profit surprise
✔️ Clean books, low debt
❌ Flat full-year growth
❌ Profit depends on deferred tax
“If you believe in chemical recovery + re-rating, this is your lottery ticket.
If not, it’s still stuck in lab trials.”
Tags: Alkali Metals FY25 Results, Specialty Chemicals Stock, EPS 4.28, PAT Turnaround, Q4 chemical profits, Tax windfall stock, EduInvesting analysis, BSE 533029
