ALOKINDS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | ALOKINDS | Market Cap | 7,974 Cr. | Current Price | 16.1 ₹ | High / Low | 23.5 ₹ |
| Book Value | -38.8 ₹ | Dividend Yield | 0.00 % | ROCE | -4.09 % | ROE | % |
| Face Value | 1.00 ₹ | DMA 50 | 15.9 ₹ | DMA 200 | 17.6 ₹ | Chg in FII Hold | 0.03 % |
| Chg in DII Hold | 0.01 % | PAT Qtr | -215 Cr. | PAT Prev Qtr | -207 Cr. | RSI | 58.4 |
| MACD | -0.22 | Volume | 2,36,57,403 | Avg Vol 1Wk | 96,43,628 | Low price | 13.9 ₹ |
| High price | 23.5 ₹ | 52w Index | 22.7 % | Qtr Profit Var | 11.7 % | EPS | -1.33 ₹ |
| Industry PE | 17.5 |
📊 Financials: ALOKINDS shows weak fundamentals with ROCE at -4.09% and EPS of -₹1.33, reflecting poor profitability. Quarterly PAT remains negative (-₹215 Cr. vs -₹207 Cr.), indicating continued losses. Book value is negative (-₹38.8), highlighting balance sheet stress. Debt-to-equity data is unavailable, but financial health appears fragile.
💹 Valuation: The stock currently has no meaningful P/E ratio due to losses. P/B ratio cannot be calculated with negative book value. PEG ratio is unavailable, further limiting valuation insights. Dividend yield is 0%, offering no income support. Intrinsic value appears weak given sustained losses and negative equity.
🏢 Business Model & Competitive Advantage: ALOKINDS operates in textiles, a highly competitive and cyclical industry. The company lacks clear profitability and competitive advantage, with weak margins and negative returns. High volatility in earnings and balance sheet stress limit long-term sustainability.
📈 Entry Zone: Technicals show RSI at 58.4 (neutral) and MACD slightly negative, with price below DMA 200 but near DMA 50. Accumulation may only be considered near ₹14–15 for speculative investors. Long-term holding is risky due to weak fundamentals and continued losses.
Positive
- Minor improvement in quarterly PAT variation (+11.7%).
- FII holdings increased slightly (+0.03%).
- DII holdings increased (+0.01%), showing minimal institutional support.
Limitation
- Negative ROCE (-4.09%) and EPS (-₹1.33).
- Book value is negative (-₹38.8), indicating balance sheet weakness.
- No dividend yield, reducing investor appeal.
Company Negative News
- Consistent quarterly losses (PAT -₹215 Cr.).
- Stock trading below DMA 200, reflecting weak momentum.
Company Positive News
- Slight improvement in quarterly profit variation (+11.7%).
- Marginal increase in FII and DII holdings.
Industry
- Textile industry is cyclical and highly competitive.
- Industry P/E at 17.5 highlights sector-wide value opportunities, but ALOKINDS remains unprofitable.
- Global demand fluctuations and cost pressures affect long-term stability.
Conclusion
🔎 ALOKINDS is financially weak with negative profitability, negative book value, and sustained losses. While minor improvements in institutional holdings and PAT variation exist, fundamentals remain poor. Entry near ₹14–15 is speculative, and long-term holding is not recommended until profitability and balance sheet strength improve.