ALOKINDS - Investment Analysis

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

Investment Rating: 1.8

📊 Fundamental Analysis Summary

Alok Industries (ALOKINDS) currently exhibits weak fundamentals and is not a suitable candidate for long-term investment based on the available data. The company is operating at a loss, has negative book value, and poor capital efficiency. While it may attract speculative interest due to its low price and high trading volume, long-term investors should be cautious.

Metric Value Interpretation

EPS ₹-1.57 Negative — indicates ongoing losses

Book Value ₹-41.6 Negative — liabilities exceed assets

ROE / ROCE Not available / -4.79% Poor capital efficiency — value destruction

Dividend Yield 0.00% No income — not suitable for income investors

PAT Growth (QoQ) -197 Cr vs -168 Cr Losses widening — deteriorating performance

P/E Ratio Not applicable No earnings — valuation cannot be justified

RSI / MACD 40.9 / -0.03 RSI near oversold; MACD flat — weak momentum

DMA 50 / 200 ₹19.9 / ₹20.0 Price below both — bearish trend

52W Price Range ₹13.9 – ₹29.8 Currently near lower end — but no fundamental support

FII/DII Change -0.07% / 0.00% No institutional interest — negative sentiment

📉 Ideal Entry Price Zone

Not recommended for long-term entry. If you're a short-term trader, speculative entry could be considered near ₹14–₹16, but this carries high risk and should be approached with strict stop-loss discipline.

🧭 Exit Strategy & Holding Period

If you already hold this stock

Exit on any bounce near ₹22–₹25, especially if losses continue and no turnaround is visible.

Holding Period: Avoid long-term holding unless the company shows consistent profitability and positive ROE/ROCE.

Key Metrics to Watch for Re-entry or Hold

Return to positive EPS

Book value turning positive

ROCE > 10%

PAT turning consistently positive

🧠 Final Thoughts

Alok Industries is currently a turnaround or speculative play, not a long-term investment. The negative book value and widening losses are major red flags. Unless there's a clear restructuring or profitability path, capital is better deployed in fundamentally stronger textile or manufacturing peers.

Would you like suggestions for better textile sector stocks with strong ROE and consistent earnings?

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