⚗️ From ₹−58 Cr to ₹4.35 Cr: Alkali Metals Turns Loss to Profit in Q4 — Multibagger Start or One-Time Chemistry?

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✅ 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.

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🧪 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).

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🧾 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.

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📉 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.

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🧮 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.

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🏦 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.

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💸 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

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🔍 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.

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⚠️ Risks

• One segment, cyclical demand
• Chemical input prices can crush margins
• Deferred tax boost is not repeatable
• Receivables + inventory = ₹410 Cr working capital lock 🔒

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🧠 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.

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🏁 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.”

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Tags: Alkali Metals FY25 Results, Specialty Chemicals Stock, EPS 4.28, PAT Turnaround, Q4 chemical profits, Tax windfall stock, EduInvesting analysis, BSE 533029