Showing posts from November 21, 2010

Alok Industries mulls Rs 800 cr capex in next 2 years

MUMBAI: Leading textile player, Alok Industries Ltd has drawn up Rs 800 crore capex plan for the next two years period, a top company official said here.
"We have invested Rs 7,000 crore in the last six years in our expansion programme. In the next two years period, we will further invest around Rs 400-450 crore per annum for our on-going expansion plans," Alok Industries CFO, Mr Sunil Khandelwal said on the sidelines of a conference here.
The company will finance the said funds through internal accruals and debt, Mr Khandelwal said, adding that it has already made a rights issue aggregating Rs 449.59 crore last year and QIP of Rs 425 crore in March 2010.
The company also seeks funds through government's TUFF scheme, which is expected to revive now, he said.
During FY10, the company had incurred a capital expenditure of Rs 1,522.90 crore across various divisions. A major portion of these were towards Phase III and Phase IV expansions, which have been fully completed, se…


IDBI Bank (Rs 179.4): IDBI Bank is in a structural uptrend since the March 2009 low of Rs 39.7. The third leg of this up-move was in progress from August this year. This leg has already achieved its target of Rs 200 and is currently reversing lower. It is possible that the stock now corrects the entire up-move from March 2009 to November this year. That gives the stock minimum downward targets of Rs 153 and Rs 140.
Investors should therefore wait for a decline to these levels before buying the stock. There is a higher support at Rs 170 that can also act as a reversal point for the stock.
If it fails to move to these targets but reverses higher, then wait for a close above Rs 205 before purchasing the stock.

Please let me know the long-term trend of Alok Industries purchased at Rs 26.

Please let me know the long-term trend of Alok Industries purchased at Rs 26.
Alok Industries (Rs 29.2): Alok Industries has not yet emerged from the bear market that gripped the stock in January 2008. The stock was in a sideways range between Rs 17 and Rs 27 for an extended period from last June. This sideways move ended in June this year and the third wave of the up-move from March 2009 is in progress since then.

Simple 1:1 extrapolation of this move gives us the target of Rs 36. The stock is currently reversing lower after recording the peak of Rs 35. Investors therefore need to tread carefully at this juncture since the stock can now decline to Rs 26 or Rs 20 over the ensuing months. Investors can hold the stock as long as it trades above the first target.
Protracted sideways move between Rs 26 and Rs 36 for a few months can help the stock move higher to Rs 43 over the next 12 months. It is hard to envisage a move beyond this level just yet. Subsequent long-term targets are Rs 54 an…