Alicon Castalloy Limited (ALICON) AI Stock Analysis

• Market Cap: ₹10.85B
• Dividend Yield: 0.65%
• Average Volume (3M): 700.00
• Price to Earnings (P/E): 101.0
• Beta (1Y): 1.51
• Revenue Growth: -3.78%
• EPS Growth: -54.67%
• Country: IN
• Employees: 794
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 2.02
• Shares Outstanding: 16,336,840
• 10 Day Avg. Volume: 312
• 30 Day Avg. Volume: 700
• PEG Ratio: -0.92
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 26.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 36.2
• Revenue Forecast (FY): ₹18.96B

• Rating: 63 Neutral
• Price Target: ₹875.00 ▲(3.20% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is supported primarily by solid operating performance and generally stable financial structure, but is held back by thin net profitability and declining ROE, weak medium-to-long technical trend signals (below 50/100/200-DMAs with negative MACD), and a relatively high P/E with a low dividend yield.

Positive Factors

High operational margins

Sustained high gross and EBIT margins reflect efficient foundry and machining operations and likely pricing or cost control advantages in aluminum casting. These margins provide durable cash flow cushion across production cycles and support reinvestment in capacity and quality improvements.

Strong operating cash generation

Operating cash flow well in excess of reported net income indicates high cash quality and working-capital discipline. This durable cash generation helps fund capex for machining lines, services OEM program ramps, and services debt without relying solely on earnings volatility.

Stable capital structure

Moderate leverage and a near-46% equity ratio provide financial flexibility for a capital-intensive automotive supplier. This balance sheet conservatism supports continued investment in tooling and capacity for program wins while keeping interest burden manageable through demand cycles.

Negative Factors

Thin net profitability

A very low net margin limits retained earnings and reduces resilience to input cost inflation or one-off expenses. Even with strong gross/EBIT margins, narrow net profit constrains ability to fund dividends, tolerate program start-up costs, or invest incrementally without external financing.

Weaker free cash flow conversion

A decline in free cash flow and sub‑1 conversion of earnings to FCF indicate working capital or capex pressures. Over months this can restrict funding for new machining lines or require higher leverage to support OEM program ramps, reducing financial optionality.

Earnings deterioration

A large drop in EPS signals volatility in profitability or one-time impacts that may persist across quarters. This undermines return metrics and suggests management must improve margin conversion or secure higher‑margin programs to restore durable earnings growth.

Alicon Castalloy Limited Business Overview & Revenue Model

Company Description

Alicon Castalloy Limited engages in the prototyping, design, manufacturing, engineering, casting, machining and assembly, painting, and surface treatment of aluminum components in India and internationally. The company offers aluminum castings, such as gravity die, low pressure die, and sand castings. Its products include cylinder head, suspension parts, wheel hubs, bridge fork top, outer tubes, and inlet pipes; and back housing, fuel cell tank, inverter housing, battery housing, electric car battery housing, swing arm, and electric car motor housings. The company also provides aluminum alloy wheels for tanks, gravity die-casted components for energy sector, and break system components for locomotives. Its products are used in various sectors, such as e-mobility, automotive, aerospace and marine, defense, locomotive, medical and health, infrastructure, energy, and agriculture. The company was formerly known as Enkei Castalloy Limited. Alicon Castalloy Limited was incorporated in 1990 and is headquartered in Pune, India.

How the Company Makes Money

ALICON generates revenue primarily through the sale of its aluminum die-casting products to major automotive manufacturers and industrial clients. The company operates on a business-to-business (B2B) model, securing contracts that often involve long-term supply agreements with OEMs (Original Equipment Manufacturers). Key revenue streams include direct sales of components, tooling and engineering services, and value-added services such as surface finishing and assembly. Additionally, ALICON benefits from strategic partnerships with automotive companies, which enhance its market presence and drive sales growth. Factors contributing to its earnings include the demand for lightweight automotive components, advancements in casting technology, and the company's focus on operational efficiency to reduce production costs.

Alicon Castalloy Limited Financial Statement Overview

Summary

Income statement strength (revenue up 10.34%, strong gross margin at 47.82% and healthy EBIT margin at 35.99%) is partly offset by weaker bottom-line profitability (net margin down to 2.68%). Balance sheet is stable with moderate leverage (debt-to-equity 0.62, equity ratio 45.79%), but ROE has fallen to 7.76%. Cash generation is solid versus earnings (operating cash flow to net income 4.45), though free cash flow declined 15.64% and conversion to free cash flow (FCF to net income 0.87) shows room to improve.

Income Statement

Alicon Castalloy Limited demonstrates strong revenue growth with a consistent increase over the past few years, culminating in a 10.34% rise in the latest period. The gross profit margin is robust at 47.82%, indicating effective cost management. However, the net profit margin has declined to 2.68%, highlighting potential challenges in controlling non-operational expenses. The EBIT and EBITDA margins are healthy at 35.99% and 11.50%, respectively, suggesting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio stands at 0.62, reflecting a moderate level of leverage. The equity ratio of 45.79% indicates a stable capital structure with a substantial equity buffer. Despite this, the return on equity (ROE) has decreased to 7.76%, suggesting a need for improved profitability to enhance shareholder returns.

Cash Flow

Alicon Castalloy Limited shows a strong operating cash flow to net income ratio of 4.45, indicating effective cash generation relative to net earnings. However, the free cash flow has decreased by 15.64% from the previous year, which could affect future investment capacity. The free cash flow to net income ratio is at 0.87, suggesting room for improvement in converting earnings into free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	16.63B	17.20B	15.59B	14.01B	10.78B	8.49B
Gross Profit	7.82B	8.23B	7.95B	6.89B	1.21B	2.67B
EBITDA	1.86B	1.98B	1.99B	1.57B	1.16B	859.22M
Net Income	334.17M	460.61M	613.67M	514.21M	241.81M	-19.25M
Balance Sheet
Total Assets	13.24B	12.95B	12.30B	10.88B	10.02B	9.07B
Cash, Cash Equivalents and Short-Term Investments	238.62M	113.73M	111.05M	118.08M	114.43M	149.64M
Total Debt	3.51B	3.66B	3.31B	3.01B	2.64B	3.54B
Total Liabilities	7.09B	7.02B	6.75B	6.00B	5.53B	5.90B
Stockholders Equity	6.16B	5.93B	5.55B	4.88B	4.49B	3.17B
Cash Flow
Free Cash Flow	642.31M	402.33M	477.05M	49.89M	31.52M	633.45M
Operating Cash Flow	1.14B	2.05B	1.57B	868.53M	771.84M	1.12B
Investing Cash Flow	-593.23M	-1.83B	-1.07B	-816.56M	-717.28M	-467.22M
Financing Cash Flow	-508.02M	-221.56M	-511.14M	-74.38M	-89.94M	-545.79M

Alicon Castalloy Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 847.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ALICON, the sentiment is Negative. The current price of 847.85 is above the 20-day moving average (MA) of 754.27, above the 50-day MA of 755.46, and above the 200-day MA of 846.74, indicating a bearish trend. The MACD of -24.73 indicates Positive momentum. The RSI at 30.59 is Neutral, neither overbought nor oversold. The STOCH value of 5.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ALICON.

Alicon Castalloy Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALICON	63 Neutral	₹10.85B	100.99	―	0.65%	-3.78%	-54.67%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JAYAGROGN	60 Neutral	₹8.00B	22.24	―	1.23%	0.69%	-7.54%
VISAKAIND	59 Neutral	₹4.89B	79.94	―	0.74%	6.79%	―
TNPL	58 Neutral	₹9.26B	36.69	―	2.08%	4.65%	-127.24%
MADRASFERT	48 Neutral	₹10.03B	127.23	―	―	3.38%	0.68%
MOL	45 Neutral	₹10.55B	-115.81	―	―	―	―

Alicon Castalloy Limited Corporate Events

Alicon Castalloy Resolves NSE Query on Quarterly Financial Filings

Alicon Castalloy Limited has responded to a query from the National Stock Exchange of India regarding its financial results for the quarter ended 31 December 2024, specifically in relation to compliance with SEBI’s financial reporting regulations. The company informed the exchange that it has uploaded a corrected XBRL filing as directed by NSE officials, removing the earlier mismatch between the PDF and XBRL versions of its results and requested that the matter be treated as closed, indicating the issue was procedural rather than operational.