Mukesh Ambani-backed Alok Industries witnessed a sharp decline of 11.51% on Friday, hitting a fresh 52-week low of ₹9.16 per share at the close. The textile stock has remained under pressure over the past five trading sessions, losing more than 21% during the period.
Alok Industries share price opened at ₹20.22 and closed at ₹9.24 on NSE on 28 August.
While the exact trigger behind the sharp decline remains unclear, the stock has been on a sustained losing streak during the final week of August. Alok Industries breached its 52-week low in successive trading sessions before witnessing a steeper fall on Friday.
The decline also appears to be stock-specific rather than part of a broader market sell-off, as the Sensex and Nifty remained only marginally lower over the same period.
In an exchange filing, Alok Industries informed the exchanges about significant increase in the volume of the company’s security in the recent past.
The company clarified saying, “There is no information which has not been announced to the stock exchanges and which should have been announced by the Company in terms of the Listing Regulations.”
The company’s consolidated net loss narrowed to ₹138.25 crore from ₹171.56 crore in the corresponding quarter last year. Revenue from operations increased 6.5% year-on-year (YoY) to ₹993.11 crore, while total expenses rose at a slower pace of 1.49% YoY to ₹1,153.45 crore. However, the cost of materials consumed surged nearly 18% YoY to ₹538.86 crore.
On a standalone basis, the company’s net loss declined to ₹136.20 crore from ₹176.48 crore a year ago. Standalone revenue from operations grew 5.81% YoY to ₹935.94 crore.
Alok Industries share price trend has remained negative amid weak market sentiments. The textile stock has descended 22.57% in a month and 43% on year-to-date (YTD) basis.
Furthermore, the textile stock has fallen 47% in a year, 48% in three years and 58% in five years.
Alok Industries Limited is a vertically integrated textile manufacturer with a presence across both cotton and polyester value chains. Based in Dhirubhai Ambani Knowledge City, Navi Mumbai, the company currently operates under the Reliance Industries group.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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