Sushil Finance is bullish on Alok Industries and has recommended buy rating on the stock with a target of Rs 30, in its November 11, 2009 research report.
"Alok Industries, AIL's strategy to make the most of its positioning & the huge global business opportunity by smartly expanding its capacities at very low cost of borrowings, largely under the TUF scheme (Technology Up gradation Scheme) has worked very well off late. Moreover, most of its expansions has gone on stream this year and hence we expect the company to post a consolidated a top line growth of 34% & 19% respectively in FY10E & FY11E & Consolidated APAT growth of 118% & 43% resp. in FY10E & FY11E. At the CMP of Rs 20, the stock trades at 5 3x its FY11E earnings While frequent equity dilution in past led to the stock underperforming the markets, with high revenue growth & improving margins, we expect the stock to get re-rated. 'Buy' with a target of Rs 30," says Sushil Finance research report.
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