RIL-backed penny stock jumps 31% in four sessions; is the recovery sustainable?

Shares of Alok Industries Ltd extended their recovery for the fourth consecutive session on Thursday, rising 14.23 per cent to hit a high of Rs 9.47. The Reliance Industries Ltd (RIL)-backed penny stock was last seen trading 11.46 per cent higher at Rs 9.24. At this level, the stock has gained 30.87 per cent in four trading sessions. Despite the recent gains, the counter remains down 42.68 per cent so far in calendar year 2026.

Alok Industries also witnessed heavy trading volume today alongside the price action. At the last check, around 10.04 crore shares had changed hands for a traded value of Rs 91.66 crore, while its market capitalisation (m-cap) stood at Rs 4,523.33 crore.

According to NSE, the counter's EPS (Earnings Per Share) based on the previous four trailing quarters in the scrip is zero. The high-low price variation was greater than 75 per cent in the previous three months, 100 per cent in the previous six months and 150 per cent in the previous 12 months. NSE also noted that the company has been loss-making for the last eight quarters.

Technical view

Osho Krishan, Chief Manager – Technical & Derivative Research at Angel One, said, "Alok Industries remains in a secular downtrend, trading below its key medium- and long-term EMAs, reflecting sustained technical weakness. Recent price action has been accompanied by improved volume traction amid the breakdown, further indicating underlying selling pressure. The Rs 10–11 zone is likely to act as immediate resistance, while support is placed around Rs 7."

Virat Jagad, Senior Technical Research Analyst at Bonanza, noted, "The stock remains in a broader downtrend. The recent sharp recovery is supported by strong volume. Sustaining above Rs 8–8.15 may support further recovery, while the trend needs confirmation above key EMA resistance."

According to AR Ramachandran, Sebi-registered research analyst at Tips2trades, "Alok Industries' stock is bullish on daily charts with strong support at Rs 8.24. A daily close above the resistance of Rs 9.3 could lead to an upside target of Rs 10.49 in the near term."

Alok Industries Q1 results

On the earnings front, the Reliance-backed company reported a consolidated net loss of Rs 138.25 crore for the quarter ended June 30, 2026 (Q1 FY27), compared with a net loss of Rs 171.56 crore in Q1 FY26. Revenue from operations, however, increased 6.50 per cent year-on-year (YoY) to Rs 993.11 crore during the quarter.

As of June 2026, RIL held a 40.01 per cent stake in Alok Industries, while JM Financial Asset Reconstruction Company owned 34.99 per cent.