Value of Alok industries shares

Alok Industries is in textile segment and if you see its performance in comparison of the peer companies then it is disappointing. Still the turnover of the company is good and if it takes some cost effective measures it may show some profitability in the coming times. Presently due to Covid-19 the market is not in a good condition and there are few buyers for this mediocre scrip. Historically this scrip never rose beyond the present value. Right now there is not much potential in it until after Covid-19 the whole textile industry progresses up. In that phase many shares could look up due to a momentum in the market and many shares like this one, would also move up at least for some short time. That would be a nice opportunity to offload these shares and keep the capital intact. The high / low indicator (23.60/1.36) of this share for last one year is also not very healthy and not encouraging. The equity of this company is also high (1368 crore). The P/E ratio is low which in fact is a positive thing amid all discouraging factors. The reason for low P/E is in fact due to high EPS which is a positive point. The recent EPS (for the quarters ending Sep'2019 and Dec'2019) have gone down and that is again a matter of concern.

Share market is not a place with perfect Mathematics. Sometimes we have to go by the sentiments also and if that happens in the market in near future then all of us who are keeping this scrip can be benefited during the blind investing race that would be generated in the post Covid-19 era. As your profit booking horizon is open for one year, you can wait for at least a year to see the pattern at that time. There are no fundamentals here. It is only a speculative feeling. Share market is like that and most of the transactions are based on speculation and guess.

Alok Industries is a small value share. It was not at all performing well till recently. Reliance has acquired it. They are now using it to make PPEs utilising the Covid situation. The share had experienced some bounce in recent days. However the general views by many in the field is of negative outlook. If you find a better price and some profit on your cost it is suggested to dispose it. The share has a problem of reaching the circuit barrier very soon. Hence you may not be able to trade when you wish also.
So monitor and if you will not lose then you may dispose and buy some good share. In case the share gains strength and growth you can revisit it later.
These kind of shares do not grow consisteltl and the gains mainly depend on the intra day fluctuations. Hence for some return the investor needs morenumber.One cannot expect high gains.

Alok industries are not doing well till recently and the shares are also not getting traded that much. Recently this company has been taken over by Reliance Industries. Now they are producing some PPE as the use of PPEs went up due to COVID 19. Presently the share is having the price which is the maximum in the history of the industry, This may be due to the taken over by Reliance. If you make a little profit at the present share value, it is a better decision to sell it off now. Chances of further going up are very remote and I feel it is better to sell these shares if you are getting back a little more than what you invested.

I would like to highlight some facts in favour of shares of Alok Industry and these points are listed below -
1) Alok Industrybeing the textile Industry has undertaken the export service as much as 20 percent to over 90 countries such as Europe, Asia, Africa etc.
2) At present, Alok Industry is operating roughly 250 stores in India having diversified products ranging from cotton to yarn industries.
3) Alok Industry has established an independent manufacturing company in Czech Republic and this hundred percent subsidy of the Alok Industry.
4) This Industry has been undertaken by the Reliance Industries offering positive promise of its higher growth in the upcoming time.
5) In terms of quality, the products are durable and reliable.
6) The industry is producing two lacks of PPE kits per day exporting the same to the different countries. The production may further be augmented keeping in view of surge of COVID 19 patients.
However, you might have seen greater fluctuations in its price ranging from Rs 1.40 to Rs 23.60 lately but a handsome return may be expected after a couple of months. Hence you may hold your share for the time being and may be disposed off after six months so as to gain handsome profits.