Alok Industries share price target 2023, 2024, 2025, and 2030: In this article, you will learn about Alok Industries share price target 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear for you, in this article we have mentioned Alok Industries share price target 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
Also read: Happiest Minds share price target 2022, 2025, and 2030.
Alok Industries (AIL) was set up in the year 1986. AIL is engaged in the business of yarn, weaving, knitting, processing, home textiles, apparel fabrics, garments, and readymade garments. Alok was established in 1986 with its first polyester texturizing plant being set up in 1989. It became a public limited company in 1993. Over the years, it has expanded into weaving, knitting, processing, home textiles, and garments. And to ensure quality and cost efficiencies it has integrated backward into cotton spinning and manufacturing partially oriented yarn through the continuous polymerization route. It also provides embroidered products through Grabal Alok Impex Ltd., its associate company.
It has evolved into a diversified manufacturer of world-class home textiles, garments, apparel fabrics, and polyester yarns, selling directly to manufacturers, exporters, importers, retailers, and to some of the world’s top brands.
Alok has a strong foothold in the domestic retail segment through a wholly-owned subsidiary, Alok H&A Limited, under the cash & carry model that offers garments and home textiles at attractive price points.
Alok also has an international presence in the retail segment through its associate concern, Grabal Alok (UK) Limited. This entity owns more than 200 outlets across England, Scotland, and Whales vending value for money ranges for menswear, womenswear, childrenswear, footwear, homeware, and accessories.
Also read: NBCC share price target 2022 and 2023.
Alok Industries Products
The company manufactures apparel fabric, knitted fabrics, embroidered fabrics, polyester yarn, garments, and home textiles.
It has also forayed into the retail segment through its 100 percent subsidiary Alok Retail (India) under the brand name H & A stores. Presently, the company owns 32 stores.
The company also operates internationally through its acquired entity Mileta located in the Czech Republic. Mileta is a European major in yarn-dyed shirting, handkerchiefs, and table linen, which specializes in high-value premium products. Mileta, Alok together have created apparel brands such as Mileta, Erba, Cottonova, and Lord Nelson.
The company is also engaged in international retailing by taking a strategic stake in a UK-based retail company Hansard 2353, now known as Grabal Alok (UK). The company has 218 stores under the brand name “Store Twenty One” that offers a range of garments for women, men, and children and homeware and related accessories.
Realty- It owns a wholly-owned subsidiary, Alok Infrastructure which has received the contract to develop 1700,000 square feet of premium office space in Mumbai.
Alok Industries Share Price Target 2023
The global apparel consumption in 2020 was estimated to be US$ 1.2 trillion, declining by 22% from 2019, due to the pandemic. EU-27 was the largest apparel consumer market followed by the USA, China, and Japan. They together contribute ~50% of the global apparel market consumption.
The global apparel demand is expected to grow at a CAGR of 3.5% to reach US$ 2 trillion by 2025. China and India are expected to be the fastest-growing apparel markets both growing in double digits, with China and India valued at US$ 340 and US$ 135 billion respectively by 2025. As there is a lot of scope for the segment to grow in the future, Alok Industries’ share price target for 2023 is Rs 18.
| Alok Industries share price target 2023 |
| Rs 18 |
Also read: JP Power share price target 2022, 2025, and 2030.
Alok Industries Share Price Target 2024
Global apparel trade is estimated to fall by at least 30%. In 2019, global trade stood at US$ 839 billion, growing at a 4% CAGR since 2005. In 2019, Apparel constituted 58% share of the global textile & apparel trade followed by fabric which accounted for 19% of the total trade. Global trade is estimated to reach the US $ 1,000 billion by 2025.
The post-pandemic growth in global trade indicates an attractive opportunity for countries with large manufacturing capacities and competitive manufacturing. India can be one of the gainers in the changing trade landscape.
China stood as the largest exporter with a 34% share in the global trade, however, has registered a loss of nearly 10% in its global share since 2015. The share has mainly been taken up by Vietnam and Bangladesh, currently 2nd and 3rd in global trade, respectively. India stood at 5th position in global trade with a 4% overall share. It is also the third-largest textile exporter in the world. Alok Industries share price target for 2024 is Rs 23.
| Alok Industries share price target 2024 |
| Rs 23 |
Also read: Tata Chemicals share price target 2022, 2025, and 2030.
Alok Industries Share Price Target 2025
India’s domestic textile and apparel market was growing at a ~10% CAGR since 2005. The market, post the recovery, is expected to reach US$ 190 billion by 2025. Technical textile growth is expected to be the fastest at 13%, followed by Apparel growth at 10%, home textile growth at 8%.
The textile and apparel sector is a major contributor to India’s total export earnings. Currently, it contributes to 11% of total export earnings of US$ 276 billion. The share of the sector in exports has declined from 14% in 2015 to 11% in 2020.
Alok Industries has integrated business operations for both of its verticals: cotton and polyester as shown below. Its key competitive advantage is present across the entire textiles & apparel value chain right from sourcing the fiber to yarn production, fabric production through knitting and weaving to garments, sheeting, and terry towels.
The integration allows the Company to optimize decisions of in-house and external sales and purchases at every stage to improve business returns depending on market conditions. It is this flexibility that provides the Company with a strong competitive edge in the market. Alok Industries share price target for 2025 is Rs 34.
| Alok Industries share price target 2025 |
| Rs 34 |
Also read: SAIL share price target 2022, 2025, and 2030.
Alok Indutries Share Price Target 2030
Alok Industries is one of the largest vertically integrated textile manufacturers in India. The company has a dominant presence in the cotton and polyester value chain with operations spanning from yarn to finished products. The company operates under the following four divisions:
- Spinning Division
- Polyester Division
- Home Textiles Division
- Apparel & Fabric Division
Alok Industries’ export business has increased to 957.21 crores in the current year as against 769.75 crores in the previous period. The USA remains the dominant market with a 58.64% share in the current year. The share of Asia has decreased from 34.59% in the previous year to 23.41% in the current year, and Europe has come down from 9.01 % in the previous year to 6.69% in the current year. The share of the African continent has increased to 9.45% in the current year as compared to 8.19% in the previous year.
Alok Industries Strategic Advantages
- Established relationships with leading Global brands and retailers
- State-of-the-art manufacturing facilities and
- supporting infrastructure
- Strong emphasis on Quality, Cost and Delivery (QCD)
- Economies of Scale that provides competitive advantages
- Forward and Backward integration leading to assured quality parameters across the chain
- Wide range of products across different product segments
- In-house product development and designing strength
By considering all the above-mentioned factors Alok Industries’ share price target for 2030 is Rs 245, and the second share price target is Rs 274.
Frequently Asked Questions
Is it good to buy Alok industries share?
Alok industries have shown poor revenue growth of -11% over the past 3 years, the company has a poor ROE of 0% over the past 3 years, and alow EBITDA margin of -58% over the past 5 years. There are better companies than Alok industries in textile sector, you can buy other textile stock which are good in terms of financials.
Is Alok Industries multi-bagger?
No, Alok industries have given just 40% return in the past 1 year, 32% return in the past 6 months, and just 52% return from the past 5 years. Therefore, Alok Industries is not a multibagger stock.
To open a free Demat Account with the best broker in India, click here.
