Alicon Castalloy Limited (ALICON) AI Stock Analysis

• Market Cap: ₹12.92B
• Dividend Yield: 0.65%
• Average Volume (3M): 700.00
• Price to Earnings (P/E): 38.6
• Beta (1Y): 1.52
• Revenue Growth: -3.78%
• EPS Growth: -54.67%
• Country: IN
• Employees: 794
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 8.50
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹1,065.00 ▲(25.61% Upside)

Alicon Castalloy Limited shows strong financial performance with solid revenue growth and operational efficiency. However, the high P/E ratio and overbought technical indicators suggest caution. The lack of earnings call data and corporate events limits further insights into future prospects.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and demand for products, supporting long-term business sustainability and expansion.

Operational Efficiency

High margins reflect strong operational efficiency, which enhances profitability and provides a competitive edge in cost management.

Cash Generation

Strong cash generation supports financial stability and provides flexibility for reinvestment and growth, crucial for long-term success.

Negative Factors

Declining Net Profit Margin

A declining net profit margin can impact overall profitability and indicates challenges in managing costs beyond core operations.

Decreased Free Cash Flow

Reduced free cash flow limits the company's ability to invest in growth opportunities and may strain future financial flexibility.

Decreased ROE

A declining ROE indicates reduced efficiency in generating profits from shareholders' equity, potentially affecting investor confidence.

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

Alicon Castalloy Limited exhibits solid revenue growth and operational efficiency, supported by strong gross and EBIT margins. While the balance sheet is relatively strong with moderate leverage and a healthy equity ratio, the decline in net profit margin and ROE indicates potential areas for improvement. Cash flow metrics suggest robust operational cash generation, but the decline in free cash flow growth highlights the need for careful capital management to sustain future growth.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.98B	17.20B	15.59B	14.01B	10.78B	8.49B
Gross Profit	7.94B	8.23B	7.95B	6.89B	1.21B	2.67B
EBITDA	1.87B	1.98B	1.99B	1.57B	1.16B	859.22M
Net Income	363.38M	460.61M	613.67M	514.21M	241.81M	-19.25M
Balance Sheet
Total Assets	0.00	12.95B	12.30B	10.88B	10.02B	9.07B
Cash, Cash Equivalents and Short-Term Investments	123.41M	113.73M	111.05M	118.08M	114.43M	149.64M
Total Debt	0.00	3.66B	3.31B	3.01B	2.64B	3.54B
Total Liabilities	-5.93B	7.02B	6.75B	6.00B	5.53B	5.90B
Stockholders Equity	5.93B	5.93B	5.55B	4.88B	4.49B	3.17B
Cash Flow
Free Cash Flow	0.00	402.33M	477.05M	49.89M	31.52M	633.45M
Operating Cash Flow	0.00	2.05B	1.57B	868.53M	771.84M	1.12B
Investing Cash Flow	0.00	-1.83B	-1.07B	-816.56M	-717.28M	-467.22M
Financing Cash Flow	0.00	-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 826.66, below the 50-day MA of 863.57, and above the 200-day MA of 837.71, indicating a bearish trend. The MACD of -16.38 indicates Positive momentum. The RSI at 32.52 is Neutral, neither overbought nor oversold. The STOCH value of 8.07 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	65 Neutral	₹12.92B	38.61	―	0.65%	-3.78%	-54.67%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JAYAGROGN	60 Neutral	₹9.46B	11.45	―	1.23%	0.69%	-7.54%
VISAKAIND	59 Neutral	₹5.77B	12.28	―	0.74%	6.79%	―
TNPL	55 Neutral	₹9.62B	-47.89	―	2.08%	4.65%	-127.24%
MADRASFERT	48 Neutral	₹13.21B	16.31	―	―	3.38%	0.68%
MOL	45 Neutral	₹15.27B	38.62	―	―	―	―