ALOKINDS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.6
| Stock Code | ALOKINDS | Market Cap | 6,847 Cr. | Current Price | 13.8 ₹ | High / Low | 23.5 ₹ |
| Book Value | -39.6 ₹ | Dividend Yield | 0.00 % | ROCE | -4.09 % | ROE | % |
| Face Value | 1.00 ₹ | DMA 50 | 13.8 ₹ | DMA 200 | 16.0 ₹ | Chg in FII Hold | 0.13 % |
| Chg in DII Hold | -0.05 % | PAT Qtr | -187 Cr. | PAT Prev Qtr | -215 Cr. | RSI | 52.0 |
| MACD | 0.14 | Volume | 42,19,975 | Avg Vol 1Wk | 40,83,230 | Low price | 11.1 ₹ |
| High price | 23.5 ₹ | 52w Index | 21.6 % | Qtr Profit Var | -15.3 % | EPS | -1.57 ₹ |
| Industry PE | 20.2 |
📊 Financials: ALOKINDS shows very weak fundamentals. ROCE is negative (-4.09%) and book value is also negative (-₹39.6), reflecting poor capital efficiency and erosion of shareholder value. EPS is negative (-₹1.57), and PAT remains in losses (-₹187 Cr. vs -₹215 Cr.). Cash flow visibility is weak, with no dividend yield.
💹 Valuation: No meaningful P/E or PEG ratio due to negative earnings. Industry P/E stands at 20.2, but ALOKINDS cannot be compared meaningfully. Intrinsic value is eroded by persistent losses and negative book value. Price trend shows weakness below DMA 200 (₹16.0).
🏢 Business Model: ALOKINDS operates in textiles, but faces structural challenges including high operational costs and weak profitability. Competitive advantage is minimal, with industry peers showing stronger fundamentals. The company’s overall health remains fragile.
📈 Entry Zone: Speculative entry only near ₹12–14, close to DMA 50 (₹13.8) and 52-week low (₹11.1). Current price ₹13.8 offers limited upside, with resistance near ₹16–18.
📌 Long-Term Holding: Not suitable for long-term investors due to weak fundamentals and persistent losses. Only speculative short-term trades may be considered with strict risk management.
Positive
- FII holdings increased slightly (+0.13%)
- High trading volumes indicate liquidity for speculative trades
Limitation
- Negative ROCE (-4.09%) and EPS (-₹1.57)
- Negative book value (-₹39.6)
- No dividend yield
- Persistent quarterly losses (PAT -₹187 Cr.)
Company Negative News
- Consistent losses with declining profitability
- DII holdings decreased (-0.05%)
Company Positive News
- FII holdings increased (+0.13%), showing marginal foreign interest
Industry
- Textile sector faces cyclical demand and margin pressures
- Industry P/E at 20.2 highlights stronger peers compared to ALOKINDS
Conclusion
ALOKINDS is a weak candidate with negative fundamentals, persistent losses, and no dividend support. Entry is speculative near ₹12–14, with profit booking recommended around ₹16–18. Long-term holding is not advisable unless fundamentals improve significantly.