CRISIL has assigned 3/5 fundamental grade on Alok Industries
Alok Industries' Q1FY13 standalone revenues were in line with CRISIL Research's expectation while operating profitability was higher.
By Rajesh Mascarenhas, ET Bureau | Updated:
MUMBAI: CRISIL has assigned 3/5 fundamental grade and 5/5 valuation grade on Alok Industries.
Alok Industries' Q1FY13 standalone revenues were in line with CRISIL Research's expectation while operating profitability was higher. The company reported healthy EBITDA margin of more than 30%, but was impacted by forex loss of Rs 1.7 bn which dented profits.
"We remain concerned about Alok's high debt level (~Rs 120 bn FY13) and if it will be able to make a timely exit from the real estate business. Our outstanding fundamental grade is 3/5 and the fair value is Rs 29 per share. We will release a detailed quarterly update post our discussion with Alok's management and may revise our assessment" said a note by Crisil.
Alok Industries' Q1FY13 standalone revenues were in line with CRISIL Research's expectation while operating profitability was higher. The company reported healthy EBITDA margin of more than 30%, but was impacted by forex loss of Rs 1.7 bn which dented profits.
"We remain concerned about Alok's high debt level (~Rs 120 bn FY13) and if it will be able to make a timely exit from the real estate business. Our outstanding fundamental grade is 3/5 and the fair value is Rs 29 per share. We will release a detailed quarterly update post our discussion with Alok's management and may revise our assessment" said a note by Crisil.
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