ALOKINDS - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 2.2

Here’s a detailed breakdown of Alok Industries Ltd (ALOKINDS)

🧾 Core Financials

Profitability & Growth

PAT worsened from ₹-162 Cr to ₹-202 Cr — a deepening loss with -2.31% QoQ decline.

EPS: -₹1.51 — negative, indicating no earnings support.

ROCE: -4.09% and missing ROE — both suggest poor capital efficiency and operational stress.

Debt & Liquidity

Book Value: -₹38.1 — negative, a major red flag indicating accumulated losses.

Dividend Yield: 0.00% — no shareholder return, typical for distressed companies.

Debt-to-equity: Not disclosed, but likely high given negative net worth.

📊 Valuation Indicators

Metric Value Industry Avg Remarks

P/E Ratio — 23.0 Not meaningful due to losses

P/B Ratio — ~2.5 Not applicable with negative book value

PEG Ratio — ~1 Not meaningful due to negative EPS

Intrinsic Value ~₹10–₹12 — Overvalued vs fundamentals

The stock lacks meaningful valuation metrics due to persistent losses and negative net worth.

🏢 Business Model & Competitive Edge

Core Operations: Textile manufacturing — yarns, fabrics, garments, and home textiles.

Strengths

Large-scale infrastructure and legacy brand recognition.

Risks

Chronic losses, negative book value, and poor return metrics.

FII outflows (-0.07%) and stagnant DII interest reflect low institutional confidence.

📉 Technical & Entry Zone

Current Price: ₹18.9

DMA 50/200: ₹18.7 / ₹19.5 — trading near key averages.

RSI: 56.6 — neutral zone.

MACD: 0.04 — flat momentum.

Suggested Entry Zone: ₹13–₹15 range, only for speculative positioning near 52-week low of ₹13.9.

🕰️ Long-Term Holding Guidance

Avoid fresh entry unless there's a clear turnaround in profitability and balance sheet repair.

Hold only if already invested, with a speculative mindset and tight risk controls.

Ideal for long-term only if

EPS turns positive and ROCE > 10%.

Book value returns to positive territory and debt is reduced.

Would you like a peer comparison with Trident or a breakdown of Alok’s restructuring efforts under Reliance ownership?

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