InvestorQ : Can anybody judge Alok industry share why its not picking up the pace when the entire market is pumping high
Jeet made post

Can anybody judge Alok industry share why its not picking up the pace when the entire market is pumping high

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Rashi Mehra answered.
2 weeks ago
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You must appreciate the fact that Alok Industries has been taken over by a consortium of JM Financial and Reliance Industries. It is in the not-too profitable textiles industry and that puts limits on its valuation potential.

Secondly, it must be also remembered that the company had seen a very sharp rally ahead of the NCLT resolution and that means most of the short to medium term story in the stock is already captured.

Thirdly, the capital base of the company is still huge and it requires a real effort in terms of earnings growth to justify investments at current prices. That limits its upside potential.

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