Rating agency, CRISIL Research has revised Alok Industries’ CRISIL IER fundamental grade to 2/5 from 3/5. The grade indicates that the company’s fundamentals are ‘moderate’ relative to other listed equity securities in India. The rating agency has also assigned a valuation grade of 5/5 to the company.
The company’s deteriorating balance sheet is the main reason for the revision in the fundamental grade. Stretched working capital, losses in the UK retail chain and a delay in exit from its real estate business worsened the financial situation.
Alok has evolved from a small trading business into India’s largest integrated textiles player. It is present across the textile value chain - from yarn manufacturing to garmenting. Alok’s production facilities are in Silvassa, Vapi and Navi Mumbai. The company also has a presence in the domestic retail segment and in real estate through a wholly-owned subsidiary.
