Heavy Buying in Ambani's Portfolio Stock: Over 10 Per cent Rally; FIIs and DIIs Increased Stake in This Loss-Making Company—Do You Own It?
The company’s borrowing increased from Rs 24,163 crore to Rs 26,015 crore resulting in an increase in finance cost.
Alok Industries is a textile company with a strong presence in both the cotton and polyester segments. The company is involved in the manufacturing of textiles, including related activities such as mending and packing, as well as the production of leather and other apparel products.
Analyzing the Quarterly Results, the following items have significantly contributed to the company’s expenses. On a YoY basis, all expenses have increased except for the cost of materials consumed, which fell from 70.70 per cent to 49.48 per cent of total income. The key point here is that despite the rise in most expenses, the company’s total income has decreased YoY in Q1 FY25.
| Particulars |
Period |
Per cent of Total Income |
| Q1 FY25 |
Q1 FY24 |
Q1 FY25 |
Q1 FY24 |
| Total Income |
1,012.34 |
1,422.80 |
- |
- |
| Cost of Material Consumed |
500.88 |
1,005.99 |
49.48 |
70.70 |
| Employee Benefits Costs |
116.94 |
122.17 |
11.55 |
8.59 |
| Finance Cost |
156.30 |
153.86 |
15.44 |
10.81 |
| Power and Fuel |
171.88 |
190.38 |
16.98 |
13.38 |
| Other Expenses |
140.19 |
123.18 |
13.85 |
8.66 |
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At the start of the day's trading session, shares of Alok Industries opened at Rs 25.74 per share, compared to the previous day's closing figure of Rs 25.39 per share on the BSE. Finally, the shares closed at Rs 28.11 per share. The stock has rallied over 10 per cent today with heavy volumes, reflecting strong demand in the market. The company's current market capitalization stands at Rs 13957 crore. Additionally, the company’s shares have delivered a return of over 65 per cent in just 1 year.
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As per the quarterly results, in the Q1 FY25, Alok Industries recorded a revenue of Rs 1012 crore compared to Rs 1422.80 crore. The operating profit stood at Rs 20 crore. The net profit stood at Rs 207 crore compared to a profit of Rs 226 crore. Looking at the annual performance, the company generated a revenue of Rs 5510 crore in FY24. The operating profit for FY24 was Rs 52 crore with a net profit of Rs 847 crore compared to a net loss of Rs 847 crore in FY23.
According to the company's shareholding pattern, the promoters hold a significant 75 per cent stake. Public investors own 22.16 per cent of the shares, while Foreign Institutional Investors (FIIs) increased their stake from 2.34 per cent to 2.46 per cent in the company while DIIs raised from 0.37 per cent to 0.38 per cent.
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Disclaimer: The article is for informational purposes only and not investment advice.