Shares of Alok Industries experienced a significant surge on Friday, climbing over 10% to reach an intraday high of Rs 15.50 per share. This surge marked a notable increase in the company’s membership.
Q4FY23 Performance
During the fourth quarter of the fiscal year 2023 (Q4FY23), the company’s net sales stood at Rs 1561.50 crore. This is a 22% increase from the same quarter of the previous year. However, at the EBITDA level in March 2023, the company remained in the negative at Rs 61.23 crore, reporting a net loss of Rs 297.55 crore.
Facing Industry Challenges
In recent months, the industry has faced a series of challenges including bulk samples, declining demand, and increasing opposition. In February 2023, data indicated a significant monthly decline of 13.1% in the tact of Indian coins in the US market.
About Alok Industries
Alok Industries is predominantly engaged in coins and electronics equipment manufacturing. The company also produces goods and accessories, including leather and other items. As of March 31, 2023, Reliance Industries held a substantial 75% share in the company, as per the shareholding director.
Stock Momentum
Despite the challenges, the stock has shown positive downward momentum over the past month, gaining more than 17%. Given these circumstances, it could be interesting to keep an eye on this trending stock’s future performance.
Summary:
- Alok Industries’ shares rose over 10% on Friday to Rs 15.50 per share.
- In Q4FY23, the company’s net sales were Rs 1561.50 crore, up 22% YoY, but reported a net loss of Rs 297.55 crore.
- The company faced challenges including declining demand and increased opposition.
- Alok Industries’ primary business involves manufacturing coins and electronics equipment.
- Reliance Industries held a 75% share in the company as of March 31, 2023.
- The company’s stock has gained more than 17% over the past month.
