Alok Industries Limited (ALOKINDS) AI Stock Analysis

• Market Cap: ₹75.02B
• Dividend Yield: N/A
• Average Volume (3M): 881.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: -20.02%
• EPS Growth: 25.52%
• Country: IN
• Employees: 22,245
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.44
• Shares Outstanding: 4,965,240,000
• 10 Day Avg. Volume: 783,871
• 30 Day Avg. Volume: 881,593
• PEG Ratio: 2.32
• Price to Book (P/B): -0.38
• Price to Sales (P/S): 2.09
• P/FCF Ratio: 215.93
• 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: 40 Underperform
• Price Target: ₹14.50 ▼(-10.88% Downside)

Alok Industries Limited faces significant financial and operational challenges, as reflected in its low financial performance score. The technical analysis indicates a bearish trend, and the valuation is unattractive due to a negative P/E ratio and lack of dividends. These factors collectively result in a low overall stock score.

Positive Factors

Vertical integration across textile value chain

Owning yarn, fabric and finished-product capabilities gives durable control over input sourcing, product mix and margin capture. Vertical integration supports cost management, faster response to demand shifts and higher-value product moves that sustain revenue resilience over months.

Diversified domestic and export market exposure

Serving both domestic and export customers reduces concentration risk and smooths demand volatility across regions. This structural diversification supports steadier order flow, access to varied price points and reduces dependence on a single market cycle over a multi-month horizon.

Positive free cash flow in 2025

Generating positive free cash flow in 2025 shows the business can convert operations into surplus cash under certain conditions. If management sustains FCF, it can fund debt reduction or working capital needs without immediate external financing, improving financial flexibility over time.

Negative Factors

Heavy leverage and negative shareholders' equity

Negative equity and high leverage are structural constraints: they raise financing costs, limit access to new capital, and increase default risk. Over months this impairs the firm's ability to invest, refinance maturing debt, and execute a durable operational turnaround.

Declining revenue and consistent net losses

Sustained revenue decline and persistent net losses erode scale and make fixed-cost absorption harder. Without a clear structural recovery in top-line or margin expansion, losses will continue to pressure liquidity, supplier terms and the ability to invest in higher-margin products.

Inconsistent operating cash flow generation

Erratic and often negative operating cash flow undermines the firm's capacity to service debt, pay suppliers and fund capex from internal resources. Reliance on sporadic cash generation forces dependence on external financing, a structural weakness when credit is constrained.

Alok Industries Limited Business Overview & Revenue Model

Company Description

Alok Industries Limited manufactures and sells textile products in India and internationally. It offers apparel fabrics, corrugated pallets, cotton and blended yarns, knitted and woven garments, home textiles, polyester yarns, and embroidery products. The company was incorporated in 1986 and is based in Mumbai, India.

How the Company Makes Money

Alok Industries generates revenue through several key streams, primarily focused on the sale of its textile products. The company's integrated manufacturing capabilities allow it to produce high-quality fabrics and garments at competitive prices, making it a preferred supplier for various retailers and brands. Additionally, Alok Industries benefits from export opportunities, supplying its products to international markets and leveraging favorable trade agreements. Significant partnerships with global brands and retailers further enhance its revenue potential, as these collaborations often involve large-volume orders. The company also explores value-added services, such as custom textile solutions, which contribute to higher margins and customer loyalty.

Alok Industries Limited Financial Statement Overview

Summary

Alok Industries Limited is facing significant financial challenges, including declining revenues, persistent losses, high leverage, and negative equity. Cash flow issues further exacerbate the situation, indicating difficulties in maintaining liquidity. Urgent strategic measures are needed to address operational inefficiencies and improve financial health.

Income Statement

Alok Industries Limited has been facing declining revenue and profitability. The gross profit margin has decreased over the years, and the company has been operating at a net loss consistently. Revenue growth has been negative, particularly from 2024 to 2025. Additionally, EBIT and EBITDA margins are negative, indicating operational inefficiencies.

Balance Sheet

The company is heavily leveraged with a negative stockholders' equity, resulting in a negative debt-to-equity ratio. This presents significant financial risk. Total assets have been declining, and the equity ratio is negative, highlighting balance sheet instability and potential insolvency risks.

Cash Flow

Cash flow from operations has been inconsistent, with significant negative values in several years. Although free cash flow was positive in 2025, it is not enough to offset the previous negative cash flows. The operating cash flow to net income and free cash flow to net income ratios indicate that cash generation is not sufficient to cover losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	36.35B	37.09B	55.10B	69.01B	73.09B	37.84B
Gross Profit	12.07B	-1.91B	15.64B	17.02B	24.25B	15.76B
EBITDA	-383.05M	1.16B	-265.20M	-372.60M	6.09B	-36.70B
Net Income	-7.81B	-8.16B	-8.47B	-8.80B	-2.09B	-56.73B
Balance Sheet
Total Assets	0.00	67.30B	74.07B	74.61B	82.28B	80.44B
Cash, Cash Equivalents and Short-Term Investments	715.10M	715.10M	191.20M	138.60M	169.50M	1.94B
Total Debt	0.00	259.63B	260.15B	241.63B	243.41B	241.74B
Total Liabilities	206.30B	273.60B	271.83B	263.62B	261.35B	257.00B
Stockholders Equity	-206.30B	-206.30B	-197.76B	-189.00B	-179.07B	-176.57B
Cash Flow
Free Cash Flow	0.00	358.50M	-11.97B	7.69B	1.18B	1.18B
Operating Cash Flow	0.00	1.15B	-11.61B	8.13B	2.25B	3.45B
Investing Cash Flow	0.00	2.77B	-1.70B	-126.00M	-669.10M	-2.03B
Financing Cash Flow	0.00	-3.48B	13.64B	-6.87B	-2.93B	-3.45B

Alok Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ALOKINDS, the sentiment is Negative. The current price of 16.27 is above the 20-day moving average (MA) of 15.30, above the 50-day MA of 15.91, and below the 200-day MA of 17.87, indicating a bearish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 45.61 is Neutral, neither overbought nor oversold. The STOCH value of 62.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ALOKINDS.

Alok Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARVIND	73 Outperform	₹82.03B	20.23	―	1.18%	8.84%	41.74%
SENCO	66 Neutral	₹50.38B	20.09	―	0.31%	20.18%	16.17%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RAJESHEXPO	60 Neutral	₹48.41B	36.68	―	―	112.02%	244.77%
KITEX	59 Neutral	₹34.12B	36.55	―	0.27%	20.41%	-6.50%
RELAXO	56 Neutral	₹97.87B	58.32	―	0.75%	-8.39%	-3.74%
ALOKINDS	40 Underperform	₹75.02B	-11.98	―	―	-20.02%	25.52%

Alok Industries Limited Corporate Events

Alok Industries to Divest Stake in Mileta a.s.

Alok Industries Limited announced that its subsidiary, Alok Industries International Limited, has entered into a Share Purchase Agreement with CRESCON, a.s. to sell its 100% equity stake in Mileta a.s. for EUR 558,825. Mileta, which contributes approximately 4.11% to Alok Industries’ consolidated turnover, will cease to be a subsidiary upon completion of the sale, expected by March 2026. This transaction, which is not a related party transaction, reflects Alok Industries’ strategic move to streamline its operations and focus on core business areas.