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.
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.
