ALOKINDS - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 1.9

Let’s unravel the fundamentals of Alok Industries Ltd. (ALOKINDS) — a textile major that’s going through financial turbulence with significant losses, negative equity, and unclear valuation metrics.

📉 Core Financial Snapshot

EPS: -₹1.57 — negative earnings indicate ongoing losses and pressure on profitability.

ROCE: -4.79% — capital is being destroyed rather than generating returns.

ROE: Not available — likely negative given continued losses.

Quarterly PAT: -₹197 Cr. vs -₹168 Cr. — widening loss (↓4.69%), no sign of recovery yet.

Book Value: -₹41.6 — negative net worth; liabilities exceed assets, raising red flags.

Dividend Yield: 0.00% — no returns for shareholders, expected with current losses.

💸 Valuation Metrics

Metric Value Interpretation

P/E Ratio Not available Negative earnings distort valuation

P/B Ratio Not meaningful Negative book value makes it unreliable

PEG Ratio Not available No growth with losses — PEG not relevant

Intrinsic Value Below CMP Fundamentals point to caution

🧵 Business Overview & Risks

Operates in textile and polyester segments, but hasn’t delivered sustainable profitability post restructuring.

Faces high competition, low margins, and exposure to raw material volatility.

Lack of meaningful DII/FII inflows suggests institutional skepticism.

Balance sheet stress, losses, and poor return metrics cloud the investment case.

📊 Technical Signals

RSI: 40.9 — nearing oversold zone, but not a strong buy signal.

MACD: -0.03 — bearish crossover, weak momentum.

CMP ₹19.4 trading below DMA 50 (₹19.9) & DMA 200 (₹20.0) — weak trend.

52W price range: ₹13.9–₹29.8 — stock closer to its lows, no major bounce in sight.

🧭 Entry Zone & Investment Strategy

Entry Zone: None recommended — stock lacks visibility on profitability and stability.

Guidance

Treat this as a high-risk speculative play, not suitable for long-term holding.

Monitor future quarters for turnaround signs (positive PAT, ROE, debt reduction).

Until clear financial recovery, best kept on the watchlist with strict downside protection.

If you're keen on the textile space, I can bring up healthier candidates like KPR Mill or Welspun India for comparative analysis in margins, exports, and operating leverage 📈🧶. Let me know.

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