alok industries

I do not deny the fact that it cannot touch 1 or 10 rs. But I cant stop people from selling Gold at throw away price. The Debt and Equity of the firm is a consideration. But investment positives over shadows few concerns. Like

Concern 1: D/E makes it finanically over leverage agreed. Think from restructuring prospects for the firm it has raised huge amt through Right Issue.

Concern 2: I am not a fool, after considering the EPS post dilution its still available at a PE of 4.5-5.

COncern 3: Profit: If its not a Satyam it definitely has posted true results in that case. The Cash in balance sheet is at 9% of debt through NEt profits add 440 crores added throughdilution and rights. The company can reduce its debt to almost 50%.

Concern $: Its all in the mind. A company that has posted a growth of over 20% in last 5 years is available at PE of less than 4 come-on I assure you you people will find this stock attractive at 45 when my analyst frieds after decent accumulation will come and talk about it.

Now the fact, It has huge stake in Grabla ALok an established player in Infra space too . If i am not wrong their subsidiary bought 950 crores of property to yield 14% return through rent,Assuming that they lost 35% of value on investment still is worth over 700 crores. Market Cap at less than 1000 crores a d/e on higher side but still they have been giving good expansion growth. One simple equation if stocks like Nocil can be market flavor this definitelly qualifies for a buy.

Chart Patterns showing sign of revival and tgt is 18.55, 23.1 looks reasonable time frame 1 mnth. Forgot to mention if you hold this stock for 3- yrs it ight even hit a half century. Its IPL season thats why nos are Century Half century. This is not an investment idea its a rationale. Calculate your return from NSC and make the mistake of buying it at 45. ELse spread your investment between 13-16. This is a long term horse nd is likely that it will stay and give returns despote poor leverage and high risk attached to it Nothing worse is visible. Te stock is at 10% from its peak.