Credit rating agency, CRISIL has assigned a CRISIL IER fundamental grade of 2/5 to Alok Industries. The grade indicates that the company’s fundamentals are ‘bad’ relative to other listed equity securities in India. However, the rating agency has assigned a valuation grade of 4/5 to the company.
The assigned fundamental grade takes into account the company’s higher receivable days- key concern. Moreover, the company’s cash collections from sale of real estate properties on a slow track.
Alok Industries evolved from a small trading business into India’s largest integrated textiles player. It is present across various verticals of the textile value chain - from yarn manufacturing to garmenting. Alok’s production facilities are at 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.
