Alok Industries Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹8.52−₹0.01 (−0.12%)

DalalBaazaar Score

16 / 100

🔴 Poor

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, the company is currently loss-making.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, with modest growth. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Alok Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Alok Industries Limited manufactures and sells textile products in India and internationally.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Annual revenue₹3,644 Cr

How does it make money?

Turns over ₹3,644 Cr a year. Of every ₹100 of sales, about ₹-20 reaches shareholders as profit, with ₹-7 left at the operating level before interest, tax and depreciation.

EBITDA margin-6.7%

Net margin-20.4%

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of -10.9% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE-10.9%

Peer median ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -47% while net margin moved +60% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-47%

Margin effect+60%

DalalBaazaar Score

16/ 100

Poor

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

15/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

P/E (Trailing)

Not meaningful

P/B

—

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well0

Nothing stands out as clearly improving on the years of data available.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from -0.8% to -6.7% over 3 years.
Negative shareholders' equity
Liabilities exceed assets — this is a solvency question that sits above every other consideration here.
Short-term liquidity is tight
Current ratio of 0.55 — near-term obligations exceed near-term assets.

Red Flags

6 items require attention · 4 high · 2 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only -1.5x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹744 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.9 points, from -0.8% to -6.7%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -1.6x to -1.5x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.55 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from -0.8% to -6.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above -9%✓ -6.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -1.5x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹177 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 5 neutral · 4 weak

Market Cap

₹4,230 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-1.53

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

-10.9%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

14.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

8.9%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹151 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹8.52

ROA

-1.3%

Weak

Assets generate little profit

Operating Margin

-2.3%

Weak

Thin margins leave little room for error

Net Margin

-19.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.55

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.24

Defensive

Steadier than the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

7.9 / 9.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

65.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6,901 Cr	₹5,421 Cr	₹3,628 Cr	₹3,644 Cr	-19.2%
EBITDA	-₹55 Cr	₹71 Cr	-₹274 Cr	-₹244 Cr	—
EBITDA Margin	-0.8%	1.3%	-7.6%	-6.7%	—
PAT (Net Profit)	-₹880 Cr	-₹847 Cr	-₹816 Cr	-₹744 Cr	—
EPS	₹-1.77	₹-1.71	₹-1.64	₹-1.5	—
ROCE	-13.2%	-7.5%	-9.9%	-10.9%	—
Total Debt	₹23,922 Cr	₹22,473 Cr	₹22,420 Cr	₹22,562 Cr	-1.9%
Free Cash Flow	₹769 Cr	-₹1,197 Cr	₹36 Cr	₹177 Cr	-38.7%

🔴 Revenue has shrunk at 19.2% a year over 3 years.

🔴 EBITDA Margin has fallen from -0.8% to -6.7% over 3 years (-5.9 pts).

🟢 ROCE has risen from -13.2% to -10.9% over 3 years (+2.3 pts).

🟡 Total Debt has been broadly flat over 3 years (-1.9% a year).

🔴 Free Cash Flow has shrunk at 38.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6,475 Cr

Total Liabilities

₹28,002 Cr

Total Debt

₹22,562 Cr

Cash & Equivalents

₹29 Cr

Operating Cash Flow

₹419 Cr

Capex

-₹242 Cr

Shareholding (proxy)

Institutional Holding

1.1%

Insider Holding

75.0%

Corporate Actions

Ex-Dividend Date

18 Dec 2013

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

4 mixed2 general

Alok Industries Share Crash Continues: Stock Plunges 11% To Fresh 52-Week Low, Falls 32% In 5 Days

Goodreturns, 17 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Why Alok Industries Surged After Insolvency Resolution

HDFC Sky, 15 Oct

Alok Industries Share Price Rise: Price Action and Context

Univest, 08 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Alok Industries Q2FY27 Results: Net loss widens to ₹208 crore YoY

scanx.trade, 16 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

RIL-backed Alok Industries shares hit fresh 52-week low; stock tumbles 53% in a year

Business Today, 01 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Mukesh Ambani's RIL-backed textile stock crash 21% in just 5 days - What's behind the plunge? Explained

Livemint, 29 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🔴Business QualityWeak6/20

🔴Financial HealthStretched1/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak1.5/15

🔴ValuationDemanding4.5/15

🔴RiskHigh0.5/10

Avoid until solvency is resolved

Alok Industries Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -9%-6.7%
✗Interest cover stays above 3x-1.5x
✓Free cash flow remains positive₹177 Cr