Reliance Invests ₹3,300 Crore in Alok Industries, Triggering Trading Frenzy in Textiles Company

Reliance Industries put a huge Rs 3,300 crore into Alok Industries, which has helped the company reach new heights. When the investment was announced, there was a huge increase in trade.

An amazing 11 crore shares changed hands on the exchanges. This is a lot more than the average daily trading amount over the past month, which was 4 crore shares. This shows that investors are very interested in Alok Industries.

Additionally, the price has seen a big 31% rise in the past month. Since Reliance Industries is a promoter in the textile business, it has a history of working strategically with Alok Industries.

Together with JM Financial Asset Reconstruction Co., RIL was able to buy Alok in 2020.

As of January 8, 2024, the stock price of Alok Industries changes a little from one source to another. ICICI Direct and 5paisa.com say the price of the stock is ₹25.35 and ₹35, respectively. Investing.com says the price is ₹35.500.

The prices may have changed because they were taken at different times. To get the most up-to-date stock price, you should always look at the newest and most reputable source.

According to its website, Alok Industries’ main business is making textiles, such as home textiles, clothing materials, jeans, and polyester yarns. The company weaves, knits, processes, and makes polyester yarn, making it one of India’s biggest vertically integrated textile manufacturers.

It sends its goods to more than 90 countries, and well-known names like Levi’s, Walmart, Zara, and H&M are among its customers. An Indian business called Alok Industries also owns most of a Czech company that makes textiles.

The company has a history of working strategically with Reliance Industries, and Reliance Industries has made big investments in the company, which has affected the success of its stock.

Reliance Industries has recently put money into a number of projects in India. Lotus Chocolate was bought by Reliance Industries in December 2022. Reliance Industries put money into Caelux in August 2023 as part of their Series A-II.

As part of their Series A, Reliance Industries put money into Caelux in September 2022. Reliance Industries put money into Viacom18 in April 2022. Reliance Industries has also put money into businesses like Embibe, Funtoot, and edtech.

Over the next three years, Reliance Industries also wants to spend $2.40 billion in West Bengal. The company wants to build compressed biogas plants, grow its retail stores, and roll out its 5G network.

Also, Reliance Industries has promised to put more money into green energy projects in Tamil Nadu.

Fundamental Analysis of Alok Industries

With a jump of 18.97% on January 8, 2024, the price of Alok Industries stock has gone up a lot. The market value of the business is ₹16,037.73 crore.

Compared to other stocks in the same business, this one has dropped 15.7% in one month and 1.6% over the past year.

The fundamental study shows that the company has a low valuation score, a lot of debt, and quarterly earnings and price momentum that are going down.

Alok Industries Shareholding Pattern

As of 8th January 2024, the shareholding pattern of Alok Industries is as follows:

• Promoters: 75% stake held by Reliance Industries Ltd (RIL) and JM Financial Asset Reconstruction Co.
• Public Investors: 25% stake held by various investors, including individuals, mutual funds, and institutional investors.
• Pledged Shares: No information available.

Financial Condition of Alok Industries over the Last Five Years

• Last 5 Years’ Sales:
  • March 2019: ₹3,128.77 crore
  • March 2020: ₹3,140.28 crore
  • March 2021: ₹3,735.31 crore
  • March 2022: ₹7,150.91 crore
  • March 2023: ₹6,748.32 crore
• Last 5 Years’ Net Profit:
  • 2019: ₹2,282.13 crore
  • 2020: ₹1,223.19 crore
  • 2021: -₹5,854.99 crore
  • 2022: -₹184.18 crore
  • 2023: -₹874.89 crore
• Profit Growth Ratios:
  • 1-Year: -375.02%
  • 3-Year: -189.43%
  • 5-Year: 14.31%
• Return on Equity (ROE):
  • 1-Year: 0%
  • 3-Year: 0%
  • 5-Year: 0%