Thursday, December 17, 2009

ALOK INDUSTRIES: VALUE BUYING


Sir,
I have shares of alok textile, firstsolution, jp hydro.
so I want your suggestion on these three stocks as for long term view 6 month to 1 year.
ashish chauhan
1. promoters shareholding in alok textile is 36.69 percent but promoter pledged his 94.50 percent holding means very poor fundamental because of high debt and highly pledged promoter shareholding.
2. Alok textile is a B group company with 10 rupees face value.
3. company net profit is increase in sept 2009 quarter but due to high equity capital EPS of share is down and remain 1.40 only in sept 2009 quarter.
4. in march 2009 company net EPS is 9.99 but currently company is increase his equity capital near about 3 times through right issue so I think EPS of current year may be down due to equity dilution.
5. Debt/equity ratio is 3.69 for alok industries.
6. Book value of alok industries is 35.47 and this is a dividend paying company.
5.Overall my view is slightly negative for this company due to high debt or huge equity capital but high book value and continue dividend paying make it value buying.
6. I think arvind ltd is better long term choice compare to alok industries. but you may also hold this share because in my view if textile is became a market fancy sector this share is give you a multiple return
Discloser: _ I hold 1263 share of arvind ltd so my personal interest is in textile sector or arvind ltd.
This analysis is my view only not a professional advice read disclaimer before take any action.
Pending analysis (share queries in queue to publish this blog):- infomedia18 difference between small cap, mid cap or large cap, jp hydro power, Rmedia wrld, 15 year investment plan for girl child, marg construction, in mutual fund , ETF, direct equity which is best?

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