Alok Industries (ALOKINDS)
TurnaroundFairStock Score: 30/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹11.62 |
| Market Cap | ₹5,769.61 Cr |
| P/E Ratio | 0 |
| ROCE | -4.76% |
| ROE | 3.55% |
| Dividend Yield | 0% |
| Profit Growth | 20.32% |
| Debt/Equity | -1.26 |
| Sales Growth | 6.5% |
| Free Cash Flow | ₹353.19 Cr |
| Promoter Holding | 75% |
| 52-Week Range | ₹7.07 — ₹19.34 |
| Sector | Textiles & Apparels |
| Book Value | ₹-43.36 |
Strengths
- Promoter holding at 75% indicates a strong controlling stake and alignment.
- Positive free cash flow of ₹353 Cr provides some internal liquidity despite losses.
- Piotroski F-Score of 6/9 suggests recent operational or financial improvement.
- DCF intrinsic value of ₹27.44 is above the current price of ₹13.89, if one trusts the assumptions.
Concerns
- Negative book value of ₹-43.61 and Debt/Equity of -1.26 signal negative equity and financial fragility.
- Latest quarter net loss of ₹218 Cr and ROCE of -4.76% show poor operational returns.
- Sales down 12.79% and EV/EBITDA of 9,353.4x leave no cheap earnings support.
- Altman Z-Score of -1.82 points to high distress risk, and zero dividend offers no cushion.
AI Analysis
At first glance, Alok Industries looks like the kind of stock Graham warned about. The market has no earnings to capitalize: price-to-earnings is meaningless, and the latest quarter lost ₹218 Cr on sales of ₹858 Cr. Book value is negative ₹43.61 per share, meaning the equity cushion is gone; an Altman Z-Score of -1.82 confirms distress. I cannot call a company with negative book value a compounding machine. Sales fell 12.79%, ROCE is -4.76%, and EV/EBITDA of 9,353.4x is absurd. With no dividend, a retail investor is asked to rely on a future that is currently unprofitable. There are some green shoots: free cash flow is positive at ₹353 Cr, the Piotroski F-Score of 6/9 hints at operational stabilization, and promoters still hold 75%. A DCF says ₹27.44, nearly double the price, but a DCF built on a loss-making, negative-equity firm is an act of faith, not calculation. The FairStock Score of 30/100 is a useful warning. Graham would demand a margin of safety: tangible assets, earnings power, or at least a credible path to positive retained earnings. This is a speculative turnaround, not a value investment. I might watch it, but I would not buy it unless the balance sheet repairs and quarterly profits become a pattern, not a promise.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer