Check Before You Invest : Alok Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Alok Industries Ltd belong to?

Alok Industries Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Alok Industries Ltd a good quality company?

Alok Industries Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Alok Industries Ltd undervalued or overvalued?

Alok Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Alok Industries Ltd a good buy now?

Alok Industries Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Alok Industries Ltd?

Alok Industries Ltd revenue growth is -33.6% for FY-2025, which is below its 5-year CAGR of 2.35%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Alok Industries Ltd?

Alok Industries Ltd Return on capital employed is -2.61% for FY-2025, which is above its 5-year historical median of -3.95%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.3 Return on Asset of Alok Industries Ltd?

Alok Industries Ltd Return on Asset is -11.23%, which is in line with its 5-year historical median of -11.38%, indicating stable asset utilization efficiency.

Q.4 Cash conversion cycle of Alok Industries Ltd?

Alok Industries Ltd Cash conversion cycle is 94 days, above its 5-year historical median of 14 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

Q.5 Gross Profit margin of Alok Industries Ltd?

Alok Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is -16% for FY-2025, which is below its 5-year median of -9.2%, indicating decreasing margins.

Q.6 Operating Profit Margin of Alok Industries Ltd?

Alok Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -0.7% for FY-2025, which is in line with its 5-year median of -0.7% indicating stable margins.

Q.7 Net Profit Margin of Alok Industries Ltd?

Alok Industries Ltd Net Profit Margin is -21.62% for FY-2025, is below with its 5-year median of -15.19%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-16	-9.2
Operating Profit Margin	-0.7	-0.7
Net Profit Margin	-21.62	-15.19

Q.8 Debt to Equity ratio of Alok Industries Ltd?

Alok Industries Ltd Debt-to-Equity ratio is -1.29, which is lower with the industry average of 0.5, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Alok Industries Ltd?

Alok Industries Ltd Debt to cash flow from operations is 217.42, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Alok Industries Ltd?

Promoters hold 75.00% of the Alok Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Alok Industries Ltd vs industry peers?

Alok Industries Ltd revenue CAGR is 2.35%, compared to the industry median CAGR of 4.23%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-33.6	4.2
Gross Profit Growth	0	8.6
Operating Profit Growth	-145.5	7.5
Net Profit Growth	0	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.52	0.98
ROE	-	6.1
ROCE	-2.61	7.6
Cash Conversion Cycle (days)	93.77	109

Valuation & price assessment

Q.1 Stock return of Alok Industries Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 11.8% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	11.8%	-6%	1.7%	-15.9%

Q.3 Valuation ratios of Alok Industries Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	2.78	19.97
Price to Book	-0.35	-0.54	1.32
Price to Sales	1.95	2.13	1.06
EV to EBITDA	649.75	81.51	9.32

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