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Alps Industries Stock Analysis

Alps Industries Limited Details

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Alps Industries Limited is in portfolio of Subramanian P. He is one of the top investors in India. As per the Company website it is in business of home textiles products. Alps products include all possibilities in a home, right from Bedding, Windows Dressings, Decorative Pillows & Accents, Table Linen and Kitchen Linen. 

Below are the products classifications from Alps.

The company is also trying to make eco friendly products from Vegetable dyed fabrics, Organic Cotton and Recycled cotton fabrics. Le Pashmina is one of the brands from the company.

The company has manufacturing plant at Bhiwandi Industrial town near New Delhi.Over the years it has expanded its foot print into different business verticals.

We will now look at the stock price of the company to learn more about the performance of it over the years. As per founding principles of technical analysis stock prices reflect Company and Index performance over the years.

Below image shows stock price of Alps industries limited for past 16 years or so.

Alps Industries Limited Stock Price Performance 2018
Alps Industries Limited Stock Price Performance 2018

In year 2002 the company was trading at price of 18. it zoomed past 100 and touched the 125 mark in year 2006. So within a period of 4 years or so it gave investors more than 6 fold return. This was the best period for investors.

After the Golden run since year 2006 the company started destructing money of Investors. In last 12 years it has never touched 100 mark. The company kept on falling every year and now it is trading at 3 mark. So for investors it is a nightmare.

This stock is perfect example of how investors get trapped in rosy stories and get their wealth destroyed. Long term investors who had faith in company and hoping for turn around were most impacted.

Alps Industries Limited My Opinion

Alps Industries Limited has not performed on Stock Exchanges for long. The business vertical in which it operates is largely unorganized and there are many players in it.

Based on price performance it seems company has not performed over the years. The gradual decline every year is not good for any company. From year 2011 to now it trades between 5 and 3 mark. The recent bull run did not help either.

There are many textiles companies in market which you can pick up if you are interested in the sector instead of it. With time the major textiles players will get benefit and smaller players will either close or get bought by these major players.

I would recommend not to invest in it. It may look cheap at current price but it may get down to below 1 mark as well. So better to put money in good companies.