Seeing the many many bullish posts on this scrip without being backed by any solid facts, I realize that there are too many investors who are stuck with this scrip having bought at higher levels. What I know is that having waited for nearly a year on this scrip and now with the expanded equity and falling $, the wait is going to be longer, it would have made more sense to exit this scrip and move to other scrips which are already performing in terms of quarterly results and you do not have to bet on companies like Alok which is betting on their future performance by Mar 2010 or much beyond. As an example, I can mention Abhishek Industries which is in the same business as Alok. There are also other scrips in other sectors.
Will be glad if this insight helps at least a few of the investors. HAPPY INVESTING.
I pity you Novin really. Expanded equity is a thing that heppned in March. And thats the only agument that you come up with every time. Two quarters have passed and their EPS for half year is around 2.25 which makes the full year to be atleast 4.5. And if we go by their growth plans, they are recording a healthy growth of around 30%. And its quite possible that in actuality, EPS turns out to be around 6 which with the industry PE of 7 gives an 2009-2010 financial year target of around 40-45. So its better that first you come up with more recent facts.
Firstly, let me say that I know it hurts when you talk low about a scrip but it hurts me when there are wrong hopes being built using this board.
Anyway to answer your specific question, I know the equity expansion happened 6 mths back but if you read the company announcements, the actual allotments and fully paid of the rights shares has happened only a few weeks before, so you will see the effect of additional float in shares now.
As regards, the projected EPS and PE, both are on the upper band, so its your call. If you are fine with it go ahead.
All the best.
it will be 50 - 70 wihtin six month, it realy excellent stock, there are manny investor are purchage on current market priose, i am suggest to all arleast minimum 500 share in you portfolio, it`s will give great reaturn.
downside is very limited here but you are right Gvika by saying that it can`t go above 30 in near future. but 30 can be easily achieve in coming 3-5 months...i too like this script at current lebel
Alok was one of the few textile companies to have expanded during the downtrend over the past 4 years. NOW THE TEXTILE SECTOR IS POISED FOR A TAKE OFF. Alok and Arvind will be the first off the mark and will gather momentum in due course. If the same Q2 growth is shown in Q3 and Q4, then Alok and Arvind`s share prices will triple at the minimum. STRICTLY MY VIEW.
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