BSE:521070

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 45% below its fair value

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Highly volatile share price over past 3 months

Does not have a meaningful market cap (₹5B)



Snowflake Analysis

Good value with questionable track record.


Similar Companies

Share Price & News

How has Alok Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 521070's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

521070

0.2%

IN Luxury

-0.4%

IN Market


1 Year Return

1.8%

521070

16.6%

IN Luxury

11.1%

IN Market

Return vs Industry: 521070 underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 521070 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

521070IndustryMarket
7 Day0%0.2%-0.4%
30 Day19.9%3.3%-1.2%
90 Day42.5%8.5%3.3%
1 Year1.8%1.8%17.3%16.6%13.0%11.1%
3 Year-1.5%-1.5%53.8%52.0%25.3%18.6%
5 Year-65.1%-65.1%103.0%96.4%35.4%23.1%

Price Volatility Vs. Market

How volatile is Alok Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Alok Industries undervalued compared to its fair value and its price relative to the market?

45.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 521070 (₹3.32) is trading below our estimate of fair value (₹6.04)

Significantly Below Fair Value: 521070 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 521070 is good value based on its PE Ratio (0.1x) compared to the Luxury industry average (11x).

PE vs Market: 521070 is good value based on its PE Ratio (0.1x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 521070's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 521070 has negative assets, so we can't compare its PB Ratio to the IN Luxury industry average.


Next Steps

Future Growth

How is Alok Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.8%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Alok Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Alok Industries performed over the past 5 years?

20.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 521070 has a high level of non-cash earnings.

Growing Profit Margin: 521070 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 521070 has become profitable over the past 5 years, growing earnings by 20.2% per year.

Accelerating Growth: 521070 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 521070 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (2.7%).


Return on Equity

High ROE: 521070's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Alok Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 521070 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 521070 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 521070 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 521070's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: 521070 has a high level of physical assets or inventory.

Debt Coverage by Assets: 521070 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 521070 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if 521070 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Alok Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 521070's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 521070's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 521070's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 521070's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 521070 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 521070's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.2yrs

Average management tenure


CEO

Surendra Jiwrajka (60yo)

₹383,429

Compensation

Mr. Surendra Bhagirathmal Jiwrajka, B.Com., has been the Managing Director of Grabal Alok Impex Ltd since April 1, 2010. Mr. Jiwrajka has been the Joint Managing Director of Alok Industries Ltd since March ...


CEO Compensation Analysis

Compensation vs Market: Surendra's total compensation ($USD5.36K) is below average for companies of similar size in the Indian market ($USD50.14K).

Compensation vs Earnings: Surendra's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Surendra Jiwrajka
Joint MD0yrs₹383.43k0.099% 4.5m
Dilip Jiwrajka
MD, CEO of Apparel Fabrics & Executive Director33.9yrs₹383.43k0.14% 6.2m
Sunil Khandelwal
Chief Financial Officer0yrs₹11.89m0.00015% 6.8k
K. Gopal
Compliance Officer & Company Secretary0yrs₹12.25mno data
Ashok Jiwrajka
CEO of Home Textiles & Whole-Time Director33.9yrs₹383.43k1.08% 49.3m
Tulsi Tejwani
CEO of Weaving & Executive Director3.4yrs₹6.87m0.00029% 13.2k
Alok Jiwrajka
Chief Operating Officer7.2yrs₹15.00m0.00030% 13.6k
Varun Jiwrajka
Joint Chief Operating Officer7.2yrsno datano data
Niraj Jiwrajka
Joint Chief Operating Officer7.2yrsno datano data
Kalpesh Shah
Senior Vice President of Legal & Secretarial0yrsno datano data

7.2yrs

Average Tenure

54yo

Average Age

Experienced Management: 521070's management team is seasoned and experienced (7.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Surendra Jiwrajka
Joint MD0yrs₹383.43k0.099% 4.5m
Dilip Jiwrajka
MD, CEO of Apparel Fabrics & Executive Director33.9yrs₹383.43k0.14% 6.2m
Ashok Jiwrajka
CEO of Home Textiles & Whole-Time Director33.9yrs₹383.43k1.08% 49.3m
Tulsi Tejwani
CEO of Weaving & Executive Director3.4yrs₹6.87m0.00029% 13.2k
Surinder Bhoan
Independent Chairman4.9yrsno datano data
Keshav Hodavdekar
Non-Executive Independent Director3yrsno datano data
Suneet Shukla
Nominee Director2.8yrsno datano data

4.9yrs

Average Tenure

62yo

Average Age

Experienced Board: 521070's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Alok Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alok Industries Limited
  • Ticker: 521070
  • Exchange: BSE
  • Founded: 1986
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹4.544b
  • Shares outstanding: 1.37b
  • Website: https://www.alokind.com

Number of Employees


Location

  • Alok Industries Limited
  • Peninsula Business Park
  • Tower B
  • Mumbai
  • Maharashtra
  • 400013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
521070BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 1996
ALOKTEXTNSEI (National Stock Exchange of India)YesEquity SharesININRApr 1996

Biography

Alok Industries Limited manufactures and sells textile products in India and internationally. The company provides accessories, including shopping bags and handkerchiefs; apparel fabrics, such as woven and knitted products; corrugated pallets; cotton and blended yarns; and Schiffli and Multi-head computerized embroidery on woven, non-woven, and knitted garments, as well as laces. It also offers woven and knitted garments for men, women, and children comprising casual wear, sportswear, foundation wear, sleep wear, workwear and industrial garments, and uniforms. In addition, the company provides home textiles, such as bed linen and terry towel products; polyester texturized, partially oriented, and fully drawn yarns; and technical textiles/work wear fabric products. It also exports its products. The company was founded in 1986 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 12:36
End of Day Share Price2020/01/30 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.