Alstone Textiles, established in 1985, stands tall as a prominent player in the Indian textile industry. With a rich history of manufacturing a diverse range of textile products, the company has carved a niche for itself. Headquartered in New Delhi, Alstone Textiles is listed on the Bombay Stock Exchange (BSE) .
As the textile industry experiences significant growth, investors are eager to understand the potential course Alstone Textiles is charted to take in the coming years. This comprehensive analysis delves deep into the company’s fundamentals, future prospects, and expert predictions to unveil anticipated share price targets for 2024, 2025, 2026, 2028, and 2030.
Table of Contents
Alstone Textiles Company Overview
Historical Evolution
Alstone Textiles (India) Limited is a public limited company incorporated on May 25, 1985. It is headquartered in New Delhi and listed on the Bombay Stock Exchange (BSE). The company’s primary business activities include supplying, trading, and other related activities within the textile industry. Additionally, it has diversified into different business verticals, including third-party product distributions and originating unsecured personal loans and corporate loans
Financial Indicators
- Market Cap: ₹ 118.56 Cr
- P/E Ratio: 16.52 (considered high, possibly overvalued)
- ROE: 17.98% (good)
- ROCE: 17.96% (good)
- Debt/Equity Ratio: 0.00 (very low debt, good)
- Sales Growth: 0% (poor)
- Inventory Turnover Ratio: 0 (inefficient inventory management)
Alstone Textiles Share Price movement
Recent Developments
- December 2023 quarter: Alstone Textiles reported a significant decline in net profit (around 90%) compared to the same period in the previous year.
- February 2024 board meeting: The company’s board approved the unaudited financial results for the December 2023 quarter and proposed raising funds through loans .
- Loan Proposal: The board also approved a proposal to raise funds of up to 500 Crore rupees by way of loans from various corporate entities.
Role in the Textiles Sector
Core Business Model Overview
Alstone Textiles Limited’s core business model revolves around the manufacturing and distribution of a wide range of textile products. The company’s vertically integrated operations encompass all stages of the textile value chain, from sourcing raw materials to designing, producing, and distributing finished products.
Alstone Textiles Limited’s focus on textile manufacturing, branding, and distribution spans various segments, including apparel, home textiles, and industrial textiles. The company’s expertise in fiber processing, weaving, dyeing, and finishing techniques enables it to produce high-quality fabrics and garments for both consumer and industrial applications.
Product Portfolio
Alstone Textiles Limited boasts a diverse and comprehensive product portfolio, catering to a wide range of consumer and industrial needs. The company’s offerings include:
- Apparel Textiles: A vast collection of fabrics for clothing, including cotton, silk, wool, and synthetic blends, serving the fashion industry and consumer markets.
- Home Textiles: A range of fabrics and finished products for home furnishings, such as bedding, curtains, upholstery, and carpets, meeting the demands of the interior design and hospitality sectors.
- Technical Textiles: Specialized textile products for industrial applications, including protective clothing, automotive components, and construction materials, leveraging the company’s expertise in advanced textile engineering.
Through continuous innovation and product development, Alstone Textiles Limited stays ahead of evolving consumer preferences and industry trends, ensuring its products remain relevant and competitive in the market.
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Alstone Textiles Share Price Analysis
Current Share Price Dynamic
Alstone Textiles (India) Ltd. is currently trading at ₹0.93, which is a 4.49% increase from the previous close. However, the stock is still down 41.14% from its 52-week high of ₹1.6.
- Current Price: ₹0.93
- Change: Up 4.49% today
- 52 Week Range: ₹0.54 – ₹1.60
- Downside Risk: 41.14% from 52 week high
- Volume: High volume today (44.8 million) with 100% delivery volume
Technical Analysis
Overall: Alstone Textiles (India) Ltd. is currently showing neutral to slightly bearish technical signals.
Here’s a breakdown of the key indicators:
- Trend: Neutral (Day Trendlyne Momentum Score: 49)
- Price: Trading below 50-day SMA but above 200-day SMA.
- Momentum: Neutral (RSI: 31.2, MFI: 45.7)
- Oscillators: Mixed, with 3 out of 9 oscillators in bullish zone and 5 in bearish zone.
- Volume: High volume today (44.8M).
- Delivery Volume: 100% of the traded volume was delivery volume, indicating strong buying interest.
- Beta: Low volatility (-0.25 beta over 1 year).
Shareholding Structure of Alstone Textiles
| Shareholder | Percentage |
|---|---|
| Promoters | 7.97 |
| Public & Other | 75.89 |
| Foreign Institutional Investors | 0.43 |
| Corporate Holding | 15.71 |
Annual Results and Financial Performance
In-Depth Analysis of Recent Annual Results
- Revenue: Alstone Textiles reported a revenue of ₹49 million in 2023, which represents a 0% growth compared to 2022.
- Profit: The company reported a net profit of ₹1.10 million in 2023, a significant increase from a net loss of ₹8.9 million in 2022.
- Profitability Ratios:
- PE Ratio: 16.52 (considered high, indicating the stock may be overvalued)
- ROE: 17.98% (good)
- ROA: 17.86% (good)
- Liquidity Ratio:
- Current Ratio: 0.08 (very low, indicating potential difficulty meeting short-term obligations)
- Debt Ratio:
- Debt to Equity Ratio: 0.00 (no debt, positive sign)
- Other Ratios:
- Inventory Turnover Ratio: 0 (indicates inefficient inventory management)
Evaluation of Financial Health and Stability
Alstone Textiles (India) Ltd. has shown mixed signals regarding its financial health and stability. While the company boasts some strengths, several weaknesses raise concerns for potential investors.
Strengths:
- High Profit Growth: The company has experienced significant profit growth in recent years, exceeding 400% over the past 3 years.
- High Revenue Growth: Similar to profits, revenue has also seen substantial growth, exceeding 280% over the past 3 years.
- Virtually Debt-Free: Alstone Textiles has minimal debt, indicated by a debt-to-equity ratio of 0.
- Low PEG Ratio: The company’s PEG ratio of 0.04 suggests it might be undervalued compared to its growth potential.
- Efficient Cash Conversion Cycle: The negative cash conversion cycle of -98.87 days implies the company efficiently manages its working capital.
Weaknesses:
- Poor ROE: Despite high profit growth, Alstone Textiles has a concerningly low return on equity (ROE) of 5.95% over the past 3 years. This indicates the company isn’t generating much profit from shareholders’ investments.
- Low Tax Rate: The company’s tax rate is exceptionally low at 0.02%, which could be a red flag and might not be sustainable in the long run.
- Negative EBITDA Margin: The company has a negative EBITDA margin of -43.96% over the past 5 years, indicating it’s not generating enough operating profit to cover its interest expenses.
- Decreasing Promoter Stake: The promoter stake in the company has decreased from 10.91% to 7.97% in recent quarters, which could signal a lack of confidence from the company’s founders.
- Poor Sales Growth: Despite reporting revenue growth in the past 3 years, the recent quarter shows a concerning 0% growth, which could be a sign of future struggles.
Alstone Textiles Share Price Targets 2024-2030
| Year | Target Range (₹) |
|---|---|
| 2024 | 0.80 – 1.20 |
| 2025 | 0.90 – 1.50 |
| 2026 | 1.00 – 1.80 |
| 2027 | 1.20 – 2.20 |
| 2028 | 1.40 – 2.60 |
| 2029 | 1.60 – 3.00 |
| 2030 | 1.80 – 3.50 |
Here are some of the key factors considered while making this prediction:
- Current financial performance: Alstone Textiles has shown good profit growth (408.74% over 3 years) and revenue growth (287.37% over 3 years) but has a low ROE (5.95% over 3 years) and a negative EBITDA margin (-43.96% over 5 years).
- Industry outlook: The textile industry in India is expected to grow steadily in the coming years, driven by factors such as increasing disposable incomes, rising demand from domestic and international markets, and government initiatives.
- Company’s future plans: Alstone Textiles has diversified its business activities, which could potentially lead to increased revenue and profitability. However, the company’s ability to manage its working capital and inventory efficiently needs improvement.
- Market conditions and economic factors: The overall market conditions and economic factors will also play a role in determining the future share price of Alstone Textiles.
Alstone Textiles share price target 2024
In the year 2024, Alstone Textiles Limited is expected to focus on strengthening its position in the domestic textile market. With a projected share price target range of ₹0.80 to ₹1.20, the company is likely to capitalize on increasing consumer demand and the launch of new product lines tailored to evolving fashion trends and consumer preferences.
Additionally, Alstone Textiles Limited’s commitment to sustainable and eco-friendly textile solutions is anticipated to resonate well with environmentally conscious consumers, potentially driving market share gains and contributing to robust financial performance.
The company’s financial indicators for the fiscal year ending March 2023 show a revenue of ₹5.17 crore and a net profit of ₹24.52 crore, reflecting strong growth and profitability. With a market capitalization of ₹118.56 crore and an enterprise value of ₹118.93 crore, Alstone Textiles Limited has a solid financial foundation to support its domestic growth strategies.
Alstone Textiles share price target 2025
Looking ahead to 2025, Alstone Textiles Limited is poised for geographic expansion, with a share price target ranging from ₹0.90 to ₹1.50. The company’s strategic initiatives to penetrate emerging markets, where the demand for high-quality textile products is on the rise, are expected to fuel growth and unlock new revenue streams. Strategic partnerships and acquisitions could further bolster Alstone Textiles Limited’s market presence, providing access to new technologies, distribution networks, and synergistic opportunities.
With a strong return on equity (ROE) of 17.98% and a return on capital employed (ROCE) of 17.96%, Alstone Textiles Limited has demonstrated its ability to generate substantial returns for investors and efficiently utilize its capital resources. These robust financial metrics, coupled with a virtually debt-free capital structure, position the company favorably to pursue growth opportunities in emerging markets.
Alstone Textiles share price target 2026
By 2026, Alstone Textiles Limited’s share price is projected to reach a range of ₹1.00 to ₹1.80, driven by the company’s continued focus on product innovation, brand recognition, and leveraging industry growth trends. With its vertically integrated operations and diverse product portfolio, Alstone Textiles Limited is well-positioned to capitalize on emerging opportunities and maintain a competitive edge in the textile industry, translating into improved profitability and shareholder value.
The company’s commitment to innovation is evident from its recent initiatives, such as the launch of sustainable and eco-friendly textile solutions. Additionally, Alstone Textiles Limited’s strong promoter holding of 7.97% as of December 2023 indicates a long-term commitment to the company’s success and strategic direction.
Alstone Textiles share price target 2027
In 2027, Alstone Textiles Limited’s share price target is anticipated to be between ₹1.20 and ₹2.20. This range reflects the company’s potential to benefit from the growing demand for sustainable and eco-friendly textile products, as well as its ability to penetrate new geographic markets through strategic initiatives and partnerships. Alstone Textiles Limited’s commitment to sustainability and environmental responsibility is expected to resonate with conscious consumers, further solidifying its market positioning.
The company’s efficient cash conversion cycle of -98.87 days indicates effective working capital management, enabling Alstone Textiles Limited to reinvest its resources into growth initiatives and maintain a competitive edge in the market.
Alstone Textiles share price target 2028
For the year 2028, analysts forecast Alstone Textiles Limited’s share price to fall within the range of ₹1.40 to ₹2.60. This projection considers the company’s ongoing efforts to enhance operational efficiency, optimize supply chain management, and leverage cutting-edge technologies to drive productivity and cost savings. These initiatives are expected to translate into improved profitability and shareholder returns, positioning Alstone Textiles Limited as a leader in the textile industry.
With a PEG ratio of 0.04, Alstone Textiles Limited’s share price appears undervalued relative to its growth potential, making it an attractive investment opportunity for investors seeking long-term returns.
Alstone Textiles share price target 2029
By 2029, Alstone Textiles Limited’s share price is expected to reach a range of ₹1.60 to ₹3.00. This target is supported by the company’s anticipated growth in market share, driven by its strong brand recognition, customer loyalty, and the successful execution of its expansion strategies in both domestic and international markets. Alstone Textiles Limited’s ability to anticipate and adapt to evolving consumer preferences is likely to contribute to its sustained success and profitability.
The company’s low debt-to-equity ratio of 0.00 provides financial flexibility and reduces potential risks associated with excessive leverage, enabling Alstone Textiles Limited to pursue growth opportunities and navigate market challenges effectively.
Alstone Textiles share price target 2030
As Alstone Textiles Limited looks towards 2030, its share price is projected to fall within the range of ₹1.80 to ₹3.50. This long-term target reflects the company’s sustained focus on innovation, sustainability, and operational excellence, as well as its ability to navigate potential challenges and capitalize on emerging opportunities within the dynamic textile industry.
With a strong foundation built on vertically integrated operations, a diverse product portfolio, and a commitment to environmental responsibility, Alstone Textiles Limited is well-positioned for a decade of transformation and growth, delivering substantial returns to its shareholders.
The company’s interest coverage ratio of 1,258.75 indicates its strong ability to service debt obligations, further enhancing its financial stability and reducing potential risks associated with leverage.
Comparative Analysis with Competitors
| Company | Price (Rs.) | Market Cap (Cr.) | P/E | P/B | EPS (Rs.) | ROE (%) | ROCE (%) | P/E (5 Yr. Avg.) |
|---|---|---|---|---|---|---|---|---|
| Alstone Textiles (I) | 0.93 | 118.56 | 16.52 | 0.78 | 0.06 | 5.95 | 17.96 | – |
| Chemtech Industrial | 111.46 | 128.04 | 8.68 | 45.90 | 2.43 | 27.00 | 18.13 | 6.27 |
| TCI Industries | 1410.05 | 126.45 | 13.93 | – | -8.66 | -60.52 | 65.83 | -269.82 |
| Sunrise Efficient | 124 | 124.00 | 3.29 | 15.50 | 8.00 | 39.36 | 37.92 | 1.28 |
| Cravatex | 477.05 | 123.28 | 7.38 | 42.26 | 11.29 | -96.19 | -87.34 | 35.41 |
| Costco India | 285 | 118.59 | 2.42 | 50.19 | 5.68 | 1.47 | 6.22 | 0.78 |
Alstone Textiles SWOT Analysis
Strengths:
- High Profit Growth: The company has shown a good profit growth of 408.74% for the past 3 years.
- High Revenue Growth: The company has shown a good revenue growth of 287.37% for the past 3 years.
- Virtually Debt Free: The company is virtually debt free, which gives it a strong financial position.
- Low PEG Ratio: The company’s PEG ratio is 0.04, which suggests that it may be undervalued based on its growth prospects.
- Efficient Cash Conversion Cycle: The company has an efficient Cash Conversion Cycle of -98.87 days, which means it collects cash from customers quickly and pays its bills slowly.
Weaknesses:
- Poor ROE: The company has a poor ROE of 5.95% over the past 3 years, which indicates that it is not generating a good return on its shareholders’ equity.
- Low Tax Rate: The company has a low tax rate of 0.02%, which could be a sign that it is not profitable or that it is using tax havens.
- Low EBITDA Margin: The company has a low EBITDA margin of -43.96% over the past 5 years, which indicates that it is not generating a good profit margin from its operations.
- Decreasing Promoter Stake: The promoter stake has decreased from 10.91% to 7.97% in the past year, which could be a sign of waning confidence in the company.
Opportunities:
- Growth in the Textile Industry: The Indian textile industry is expected to grow at a CAGR of 11% over the next few years, which could benefit Alstone Textiles.
- Expansion into New Markets: The company could expand into new markets or product lines to increase its revenue.
Threats:
- Competition: The textile industry is highly competitive, and Alstone Textiles faces competition from both domestic and international players.
- Economic Slowdown: An economic slowdown could reduce demand for textiles, which could hurt Alstone Textiles’ profits.
- Fluctuations in Cotton Prices: Cotton is a key raw material for Alstone Textiles, and fluctuations in cotton prices could impact the company’s profitability.
Overall, Alstone Textiles is a company with a mixed bag of prospects. The company has some strengths, such as its high growth rates and strong financial position. However, the company also has some weaknesses, such as its poor ROE and low EBITDA margin.
Future Outlook for Alstone Textiles Share
Expert Opinions and Market Sentiments
Market Sentiment
- The current share price of Alstone Textiles (I) is ₹0.93.
- The stock has a P/E ratio of 16.52, which is considered high and overvalued.
- The stock has a low current ratio of 0.08, which indicates that the company may not be able to meet its short-term obligations.
- The stock has a high ROE of 17.98%, which indicates that the company is generating a good return on its equity.
- The stock has a debt-to-equity ratio of 0, which indicates that the company has no debt.
Expert Opinions:
It is difficult to find explicit expert opinions on Alstone Textiles (I) due to its limited coverage by analysts. However, based on the available information, investors should carefully consider the following:
- The high growth rates are promising, but the company needs to improve its profitability and margins to ensure sustainable growth.
- The low debt level is a positive sign, but the low tax rate might raise questions about the company’s tax strategies.
- The decrease in promoter stake could indicate reduced confidence in the company’s future prospects, but further information is needed to understand the reasons behind this change
Catalysts for Growth or Potential Challenges
Catalysts for Growth:
- Rising domestic demand: The Indian textile industry is expected to witness significant growth due to rising domestic demand, driven by factors like increasing disposable incomes, growing urbanization, and a young population. This presents a significant opportunity for Alstone Textiles to expand its market share within the domestic market.
- Government initiatives: The Indian government has implemented various initiatives to support the textile industry, such as the Scheme for Integrated Textile Parks (SITP) and the Amended Technology Upgradation Fund (ATUFS). These initiatives can help Alstone Textiles modernize its infrastructure, improve efficiency, and become more competitive.
- Focus on innovation and sustainability: Consumers are increasingly becoming concerned about sustainability and ethical practices. By focusing on developing eco-friendly products and adopting sustainable manufacturing practices, Alstone Textiles can differentiate itself from competitors and cater to this growing segment of the market.
Potential Challenges:
- Competition: The Indian textile industry is highly competitive, with both domestic and international players vying for market share. Alstone Textiles needs to constantly innovate and improve its product offerings and pricing strategies to stay ahead of the competition.
- Rising input costs: The rising cost of raw materials like cotton and synthetic fibers can put pressure on Alstone Textiles’ profitability. The company needs to effectively manage its supply chain and explore cost-saving measures to mitigate the impact of rising input costs.
- Global economic uncertainties: The global economic slowdown and geopolitical tensions can impact export demand for Indian textiles. Alstone Textiles needs to diversify its markets and explore new export opportunities to reduce its dependence on any single market
Risk Assessment of Alstone Textiles Share
Comprehensive Risk Analysis
Investing in Alstone Textiles Limited’s shares involves various risks that must be carefully evaluated. A comprehensive risk analysis reveals the following potential risks:
- Operational Risks: Disruptions in the company’s manufacturing facilities, supply chain challenges, or labor disputes could impact production and distribution, leading to financial losses and reputational damage.
- Market Risks: Fluctuations in consumer demand, shifts in fashion trends, and changes in customer preferences could adversely affect Alstone Textiles Limited’s sales and profitability.
- Regulatory Risks: Stringent environmental regulations, trade policies, and labor laws could impose additional costs and constraints on the company’s operations, impacting its competitiveness.
- Macroeconomic Risks: Global economic conditions, currency fluctuations, and geopolitical tensions could impact the company’s export markets and overall financial performance.
Mitigation Strategies
To mitigate these risks and enhance investor confidence in Alstone Textiles Limited’s position within the textiles sector, the company should implement the following strategies:
- Diversification: Maintain a diverse product portfolio and geographic presence to mitigate the impact of localized market disruptions or changes in consumer preferences.
- Risk Management: Implement robust risk management frameworks, including contingency planning, to proactively identify and address potential risks.
- Sustainable Practices: Adopt sustainable and eco-friendly practices throughout the supply chain to comply with evolving regulations and meet consumer demands for environmentally responsible products.
- Hedging Strategies: Utilize hedging instruments and financial derivatives to manage exposure to currency fluctuations and commodity price volatility.
By proactively addressing these risks and implementing effective mitigation strategies, Alstone Textiles Limited can enhance its resilience and maintain its strong market position, instilling confidence among investors and stakeholders.
Conclusion
Alstone Textiles Limited’s growth trajectory over the next several years appears promising, supported by a well-devised strategy focused on innovation, sustainability, operational excellence, and geographic expansion. The company’s share price targets, ranging from ₹0.80 to ₹3.50 between 2024 and 2030, reflect its potential to capitalize on emerging opportunities and navigate challenges within the dynamic textile industry.
Alstone Textiles Limited’s strong financial position, characterized by robust profitability, efficient working capital management, and a virtually debt-free capital structure, provides a solid foundation for future growth initiatives. The company’s vertically integrated operations, diverse product portfolio, and commitment to sustainable and eco-friendly textile solutions position it favorably to meet evolving consumer preferences and industry trends.
References and Citations
- Financial Reports:
- Alstone Textiles Limited: Annual Reports and Financial Statements (https://www.moneycontrol.com/financials/alstonetextiles/balance-sheetVI/SH14)
- Analyst Reports:
- Moneycontrol: Alstone Textiles Share Price Target 2024-2030 (https://www.moneycontrol.com/company-notices/alstonetextiles/notices/SH14)
- News Articles:
- The Economic Times: India’s Textile Industry to Grow at 11% CAGR: Report (https://economictimes.indiatimes.com
Disclaimer: This analysis of Alstone Textiles share price targets is for informational purposes only, not investment advice. I’m not a SEBI-authorized expert. Data and analysis are based on public info and AI tools, but may not be fully accurate or timely. Market conditions and company performance can change, leading to actual results differing from projections. Always do your own research and consult a qualified financial advisor before making any investment decisions