Alok Industries - Mid Cap Stock Pick

#1
Alok Industries - Mid Cap Stock Pick

An integrated player with substantial weaving and processing capacities, Alok Industries is slated to be one of the major gainers in the Indian textile industry, post-2005, when the quota regime would come to an end.

This, coupled with factors such as its focus on the home textiles segment and the expansion of its weaving and texturising capacities, would have a favourable impact on its earnings growth.

Alok Industries has a presence in the higher end of the textile industry value chain stretching from weaving and processing to readymade garments.

The company has a good international presence and supplies apparel to leading retailers such as Target, Bed and Bath Linen and Wal-Mart. Domestically, it supplies fabric to Zodiac clothing.

Recently Alok Industries Ltd has posted a PAT of Rs 71.08 crore for the year ended March 31, 2004 (FY-04) as compared to a PAT of Rs 42.31 crore for the year ended March 31, 2003 (FY-03). Total Income has increased from Rs 795.59 crore in FY-03 to Rs 1073.74 crore in FY-04.

The board has recommended the equity dividend of 10 per cent i.e. Rs 1 per share for the year ended March 31, 2004 subject to approval of members of the company at the ensuing AGM scheduled to be held on September 30, 2004. The members register will be closed for the purpose of entitlement of equity dividend from September 21, 2004 to September 30, 2004 (both days inclusive).

The board also approved in principle the company`s venture into manufacturing of terry towels with an annual capacity of 10,000 tons.

See attached chart for my trading signal, stoploss and profit booking target.
 

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#4
Hi Trader Ji.
I entered Alok Industries at 61.00 now its at 57.00 So whats your prediction for this stock. It is just not moving inspite of good results...onthe other hand Arvind id going up despite of bad results
 
#5
Hi Traderji
A quick question on Alok Inds. Is the analysis of 13th Sept'04 (1st post in this thread) still valid ?

It was mentioned as a long term pick 2 months back... does it qualify for an upmove now ???
 

Traderji

Super Moderator
#6
vikasdewan said:
Hi Traderji
A quick question on Alok Inds. Is the analysis of 13th Sept'04 (1st post in this thread) still valid ?

It was mentioned as a long term pick 2 months back... does it qualify for an upmove now ???
It does not qualify for an upmove now as it is forming a downward sloping pattern. One will have to wait and see how it forms the next pattern after some time.
 
#9
Traderji

Don't you think the management is bloating the equity capital. This year, they have made 2 private placements. I do not know whether it bodes good for the shareholders or not (Though in the case of Mercator lines, it proved to be beneficial for Shareholders - the equity capital of Mercator lines was relatively very small compared to Alok Industries Capital)? How are the ratio like market cap to turnover and PE appear compared to other Textile stocks?
 
#10
Traderji said:
YES you can BUY now!

If it breaks out of 66 you could see the stock go up yo 95.00 - 100.00
Alok Tex now at 66.5 area.....if we close like this,we in breakout territory!
 
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