With positive news from US Fed a strong rally will start in Indian browses, Broad based rally along with Small & Mid cap sector stocks will start and will see huge returns from Small & Mid cap counters:
Alok Industries, Good Times Ahead (BUY)
Established in 1986, Alok Industries Ltd. is amongst the fastest growing vertically integrated textiles solutions provider in India.The market outlook for textiles, particularly for Polyester Yarn & Fabrics is improving very fast with increasing demand from global and domestic markets and better realizations.
In cotton spinning, Alok Industries have a capacity of about 340,000 spindles; and they are increasing this to about 400,000 spindles by March 2011.
Also second polyester plant is start operations in December 2010 in stages. That would take the capacity from 200,000 tons per annum to 400,000 tons per annum, which is scheduled to be completed by March 2011. also they plan another expansion of 200,000 tons per annum in polyester once they complete the current capacity addition project.
On its retail expansion, the company is scaling-up the number of its H&A stores to 400 from the current 248 pan-India. Besides, it also plans to scale-up “Store 21”, the retail chain operating in the UK
Alok Industries Limited also planning merger between the Company and M/s. Grabal Alok Impex Ltd. (Grabal Alok is spearheaded by Alok Industries Limited in technical and financial collaboration with Grabal Albert Grabher Gesellschaft m.b.H & Co., of Austria.)
In Silvassa, they have 55 MW of power, which is currently running on furnace oil. they are expecting gas connection in Silvassa by March 2011. The switch to natural gas for power generation will lead to good savings for us.
The 641,000 sq ft of Peninsula Towers, is going to be ready by January-February and Alok hope to be able to sell it within one year from that period onwards.It should be about Rs 1,500 crore.
Besides this Company is planning to invest Rs.900crs over the next 2 years to increase capacity
Financials:
The company's current turnover is Rs 4,300-crore. Alok Industries is eyeing a three-fold growth in its revenue over the next three-years to Rs 12,000-crore as it plans a major expansion in both domestic and overseas markets.
During the quarter Q2 FY11, the profit of the company rose 40.00% to Rs 798.00 million from Rs 570.00 million in the same quarter previous year.
Share Holding Pattern:
FII’s have increased their holding in the company from 4.92 during June’10 quarter to 13.89% in Sept.’10 quarter.
Corporate bodies hold: 36.31% of the total shares. Increased from 35.81 to 36.31% during June to Sept 2010 period. Corporate bodies includes, SBI, LIC, IFCI, IDBI, bank of baroda, axis bank, PNB etc.
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