Showing posts with label Alok Ind. Show all posts
Showing posts with label Alok Ind. Show all posts
23 December 2012
11 November 2012
29 September 2012
Alok Industries: Ongoing dilution saga… :: ICICI Securities, report
Ongoing dilution saga…
Alok Industries’ (Alok) Board has approved a rights issue amounting to
| 551 crore. It has also withdrawn the earlier cleared proposals of equity
issuances & preferential allotment and warrant allocation to promoters.
We look at this as a negative for the company considering the past
dilution history. In the race to enhance capacities, the company has had
to leverage extensively and also had to resort to equity dilution in the
past. However, this has not worked too well for shareholders who have
not received anything significant, either in the form of dividends or share
price appreciation. Based on our estimate of a rights issue price of | 12,
we expect a ~30% haircut in the EPS. Also, the delay in closure of deals
on the real estate front has worsened the situation for the company. In
the past few years, the company has had to time and again resort to
equity dilution. Considering these factors, we downgrade Alok Industries
from HOLD to SELL with a revised a target price of | 8.
19 September 2012
Alok Industries Ltd:: CRISIL IER -IndependentEquityResearch
Alok Industries Ltd
Pulled down by retail and real estate
Alok Industries Ltd’s (Alok’s) fundamental grade has been revised to 2/5 from 3/5 by CRISIL
Research. The company’s balance sheet has deteriorated more than our expectations. Its
consolidated debt-to-equity has increased to 6.1x in FY12 after adjusting for goodwill. Losses
in the UK retail store, higher than expected working capital levels despite rising share of
polyester business and no further deals in its real estate business have worsened its financial
profile. However, the core textile business continues to do well given Alok’s strong
capabilities and the huge capacity in this business. We expect the core business to help Alok
to improve its financial profile in times of tight liquidity
27 May 2012
21 February 2012
Buy Alok Industries; Target :Rs 25 ::ICICI Securities
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I m p a c t e d b y r u p e e d e p r e c i a t i o n …
Alok Industries’ (Alok) Q3FY12 numbers were ahead of our estimates on
the topline and operating front. However, the bottomline performance
came as a negative surprise. The company reported a topline, EBITDA
margin and loss of | 2,386.7 crore, 26.9% and | 36.6 crore, respectively.
The operating margin improved by 106 bps YoY due to lower raw
material costs. During the quarter, the company made a marked-tomarket (MTM) provision of | 184.2 crore on account of the depreciation of
the rupee. Consequently, the company reported a loss despite a good
operational performance. On account of this, we have revised our FY12E
estimates downwards by 46.4%. Further, due to a delay in any concrete
announcement of the real estate monetisation, we believe the higher debt
burden will continue for some part of FY13E as well. Consequently, we
have revised our FY13E estimates downwards by 4.5%.
ƒ Real estate monetisation plans delayed by a few months
The company did not make any new announcements regarding
monetisation of the real estate business. However, the management
indicated that a token amount was received and enquiries are
turning into buying decision. There would be a delay in the actual
transaction (from the management’s earlier estimates of March
2012). The management believes a large part of the deals should
close by H1FY13E as against the earlier estimated FY12E.
V a l u a t i o n
Alok has continued to demonstrate a robust topline growth on the back of
capacity addition. However, the adverse rupee movement (considering
~20% of the company’s debt is foreign currency denominated) has
dented the bottomline of the company. We have revised our earnings
estimates downwards bearing in mind factors like adverse rupee impact
and the delay in real estate liquidation. However, the management’s
conviction of becoming free cash flow positive and reducing debt remain
the long term positives for the company. The stock is currently trading at
6.5x and 3.1x its FY12E and FY13E EPS, respectively. We have reduced
the target multiple from 3.8x to 3.5x FY13E EPS due to a delay in land
monetisation, which will lead to higher interest costs. We maintain our
BUY rating on the stock with a revised target price of | 25.
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I m p a c t e d b y r u p e e d e p r e c i a t i o n …
Alok Industries’ (Alok) Q3FY12 numbers were ahead of our estimates on
the topline and operating front. However, the bottomline performance
came as a negative surprise. The company reported a topline, EBITDA
margin and loss of | 2,386.7 crore, 26.9% and | 36.6 crore, respectively.
The operating margin improved by 106 bps YoY due to lower raw
material costs. During the quarter, the company made a marked-tomarket (MTM) provision of | 184.2 crore on account of the depreciation of
the rupee. Consequently, the company reported a loss despite a good
operational performance. On account of this, we have revised our FY12E
estimates downwards by 46.4%. Further, due to a delay in any concrete
announcement of the real estate monetisation, we believe the higher debt
burden will continue for some part of FY13E as well. Consequently, we
have revised our FY13E estimates downwards by 4.5%.
ƒ Real estate monetisation plans delayed by a few months
The company did not make any new announcements regarding
monetisation of the real estate business. However, the management
indicated that a token amount was received and enquiries are
turning into buying decision. There would be a delay in the actual
transaction (from the management’s earlier estimates of March
2012). The management believes a large part of the deals should
close by H1FY13E as against the earlier estimated FY12E.
V a l u a t i o n
Alok has continued to demonstrate a robust topline growth on the back of
capacity addition. However, the adverse rupee movement (considering
~20% of the company’s debt is foreign currency denominated) has
dented the bottomline of the company. We have revised our earnings
estimates downwards bearing in mind factors like adverse rupee impact
and the delay in real estate liquidation. However, the management’s
conviction of becoming free cash flow positive and reducing debt remain
the long term positives for the company. The stock is currently trading at
6.5x and 3.1x its FY12E and FY13E EPS, respectively. We have reduced
the target multiple from 3.8x to 3.5x FY13E EPS due to a delay in land
monetisation, which will lead to higher interest costs. We maintain our
BUY rating on the stock with a revised target price of | 25.
05 February 2012
Stock strategy: Positive bias in Alok Ind, Biocon :: Business Line
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Alok Industries (Rs 21.5): While the long-term outlook remains weak for Alok Industries, in the short-term the stock could show some resilience.
The stock made a strong recovery last week. It finds immediate resistance at Rs 27 and support at Rs 18.1. A close above the resistance can lift the stock towards Rs 33. Only a close above Rs 54 will change the outlook positive for the stock.
F&O pointers: Fresh longs were initiated on Alok Industries on Friday. Option trading indicates that Rs 20 would be tough to break.
Strategy: Traders can go long on Alok Industries with a stop loss at Rs 20(spot price on a closing day basis). Since the market lot is 11,000 shares per contract, traders with high-risk appetite can consider entering into the strategy.
Alternatively, traders can also write (sell) 20 put, which closed on Friday at 55 paise.
While maximum profit in the strategy is the premium collected, loss could be unlimited if Alok Industries falls sharply below Rs 20. This strategy is also for traders with a high-risk appetite only.
Biocon (Rs 280): While the medium-term outlook remains negative for Biocon in the short run, the stock can witness a recovery. The stock finds key resistance at Rs 324 and support at Rs 256.
Only a close above Rs 375 will change the outlook to positive for Biocon.
On the other hand, a fall below Rs 256 will trigger a fresh downfall for the stock. In that event, it can go to Rs 203 level.
F&O pointers: Biocon accumulated fresh long positions on Friday. Options did not see any activity.
Strategy: Traders can go long on Biocon February futures with a stop-loss at Rs 256 for an initial target of Rs 324. If it opens on a positive note, stop-loss could be shifted to Rs 280. Market lot is 1,000 shares.
Follow-up: Last week we had recommended short-strangle on NTPC and a short on IFCI with a stop-loss at Rs 31.
Traders can hold on to both the strategies. NTPC can be held till expiry as the stock is hovering around Rs 175 level.
IFCI, on the other hand, closed above Rs 31 in the spot market. However, as mentioned last week, traders who are willing to take high risk, can hold on to IFCI futures with Rs 33 as stop-loss on a closing day basis.
13 November 2011
Investment Focus - Alok Industries: Buy ::Business Line
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A varied product mix, backward integration, strong export standing and low valuations make the stock of Alok Industries a good bet in the textile space for investors with a 2-3 year perspective. At Rs 20, the stock trades at four times trailing four-quarter earnings, at a steep discount to closest comparable Bombay Rayon Fashions.
Ranged presence: Over the past two years, Alok has gradually brought polyester yarn into its product offering to diversify out of its cotton concentration. In international markets, man-made textiles have a stronger presence than natural fibres such as cotton. In the first six months of this financial year, polyester accounted for as much as 36 per cent of revenues. It also deepened product lines; for instance, it introduced terry towels in the home textiles segment. Alok's product range includes apparel fabric, garments, home textiles, and polyester and cotton yarn.
Alok derives about a third of sales from exports. While the biggest consumer markets of the US and Europe are troubled, Alok's large capacities serve it well. As global retailers look to contain costs, they may consolidate suppliers and source more from fewer vendors. Those able to ramp up production to meet higher demand could thus benefit.
During the previous recessionary phase, Alok had been able to grow exports by virtue of its capacities. In the six months ended September 2011, exports have expanded a healthy 28 per cent. As fresh capacity expansion across product categories comes on stream by the end of December, revenues could see better growth. It also plans to deepen presence in domestic retail; however, with its franchise route of expansion, extensive capital will not be required. Further, retail accounts for less than one per cent of revenues.
Debt and interest: Revenues for the first half of this financial year have grown by 48 per cent, helped by price and volume growth. Operating margins stood at 26 per cent, down from the 29 per cent in the year-ago period on a higher contribution of low-margin polyester in revenues. With prices of inputs such as cotton cooling off over the past several months, the earlier margin pressures from material costs have lightened. Backward integration into spinning of yarn has also helped it record better margins than peers.
However, with debt-equity at 3.1 times, interest costs have hurt Alok. Net profits grew by 10 per cent for the first half of this financial year; interest outgo rose 35 per cent during this period. Still, some of the debt comes under government schemes which have long repayment periods. It has also begun to dispose of its real estate, raising about Rs 100 crore thus far. It aims to collect about Rs 1,400 crore through such sales by the end of 2012 which will significantly reduce interest burden.
09 November 2011
Buy Alok Industries ; Target : Rs 28 ::ICICI Securities
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R o b u s t t o p l i n e g r o w t h c o n t i n u e s …
Alok Industries’ (Alok) Q2FY12 numbers were in line with our estimates.
The company has continued its strong topline growth trend as it enjoys
the benefits of expanded capacities. In Q2FY12, revenues increased by
47.2% YoY to | 2,136.8 crore higher than our estimate of | 1,959.5 crore.
Exports increased by 22.2% YoY to | 740.0 crore. During the quarter, the
company had to make a marked-to-market (MTM) provision (to the tune
of ~ | 100 crore) on account of the recent depreciation of the rupee.
Consequently, the operating margin fell by 438 bps YoY and 323 bps QoQ
to 24.3% (lower than our estimate of 27.2%). Further, higher depreciation
and interest costs ate into the company’s profits and PAT growth was a
muted 2.4%. Despite pressure on the operating front and higher fixed
costs, Alok’s Q2FY12 PAT stood at | 81.7 crore, (I-direct estimate: | 83.5
crore) on the back of higher other income (| 22.5 crore, of which | 10.0
crore came in as a final insurance claim while | 10.0 crore was profit
accrued due to the Silvassa land sale). For the first half ended September
2011, revenues, EBITDA and PAT increased by 48.3%, 30.7% and 10.4%
to | 3,781.7 crore, | 970.7 crore and | 139.5 crore, respectively.
ƒ Real estate monetisation: No announcements; optimism prevails
The company did not make any new announcements regarding
monetisation of the real estate business. However, the management
tone was affirmative and they continued to maintain their guidance
of closing large part of the deals and garnering ~ | 1,400 crore (of
the | 1,800 – 2,000 crore) in the current fiscal.
V a l u a t i o n
After an exceptional FY11, domestic textile players have witnessed a
tough H1FY12. With cotton prices correcting ~35% from peak levels,
some players faced heavy inventory losses. Amid such difficult times,
Alok has maintained consistent topline growth (backed by capacity
expansion) while the bottomline has also grown, albeit at a lower pace
(due to high interest costs). We expect topline and bottomline to grow at
a CAGR of 22.4% and 21.4%, respectively, during FY11-13E. The stock is
currently trading at 3.2x and 2.7x its FY12E and FY13E EPS of | 6.4 and
| 7.6, respectively. We have valued the stock at 3.8x FY13E EPS to arrive
at a target price of | 28. We maintain our BUY rating on the stock.
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R o b u s t t o p l i n e g r o w t h c o n t i n u e s …
Alok Industries’ (Alok) Q2FY12 numbers were in line with our estimates.
The company has continued its strong topline growth trend as it enjoys
the benefits of expanded capacities. In Q2FY12, revenues increased by
47.2% YoY to | 2,136.8 crore higher than our estimate of | 1,959.5 crore.
Exports increased by 22.2% YoY to | 740.0 crore. During the quarter, the
company had to make a marked-to-market (MTM) provision (to the tune
of ~ | 100 crore) on account of the recent depreciation of the rupee.
Consequently, the operating margin fell by 438 bps YoY and 323 bps QoQ
to 24.3% (lower than our estimate of 27.2%). Further, higher depreciation
and interest costs ate into the company’s profits and PAT growth was a
muted 2.4%. Despite pressure on the operating front and higher fixed
costs, Alok’s Q2FY12 PAT stood at | 81.7 crore, (I-direct estimate: | 83.5
crore) on the back of higher other income (| 22.5 crore, of which | 10.0
crore came in as a final insurance claim while | 10.0 crore was profit
accrued due to the Silvassa land sale). For the first half ended September
2011, revenues, EBITDA and PAT increased by 48.3%, 30.7% and 10.4%
to | 3,781.7 crore, | 970.7 crore and | 139.5 crore, respectively.
ƒ Real estate monetisation: No announcements; optimism prevails
The company did not make any new announcements regarding
monetisation of the real estate business. However, the management
tone was affirmative and they continued to maintain their guidance
of closing large part of the deals and garnering ~ | 1,400 crore (of
the | 1,800 – 2,000 crore) in the current fiscal.
V a l u a t i o n
After an exceptional FY11, domestic textile players have witnessed a
tough H1FY12. With cotton prices correcting ~35% from peak levels,
some players faced heavy inventory losses. Amid such difficult times,
Alok has maintained consistent topline growth (backed by capacity
expansion) while the bottomline has also grown, albeit at a lower pace
(due to high interest costs). We expect topline and bottomline to grow at
a CAGR of 22.4% and 21.4%, respectively, during FY11-13E. The stock is
currently trading at 3.2x and 2.7x its FY12E and FY13E EPS of | 6.4 and
| 7.6, respectively. We have valued the stock at 3.8x FY13E EPS to arrive
at a target price of | 28. We maintain our BUY rating on the stock.
09 August 2011
Buy Alok Industries; Target : Rs 28:: ICICI Securities
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A c c r u e s b e n e f i t s o f e n h a n c e d c a p a c i t i e s …
Alok Industries’ (Alok) Q1FY12 results were ahead of our expectations on
the revenue and operating margin front. Net sales increased 49.7% YoY
to | 1,644.9 crore (I-direct estimate: | 1,483.6 crore) led by strong volume
and value growth across segments. Exports registered growth of 38.5%
YoY to | 602.2 crore. The company reported an EBITDA margin of 27.5%
against our expectation of 24.7%. The EBITDA margin declined by 224
bps YoY due to increased raw material costs and higher share of
polyester segment (low margin business). Alok’s Q1FY12 PAT stood at |
57.8 crore in line with our estimate of | 57.1 crore. Higher interest cost
and increased depreciation led to PAT growth of 24.2% YoY. The
company has been able to monetise some of its real estate portfolio and
is hopeful of being free cash flow positive by FY13E. The management
also envisages debt reduction over the next three years and targets a
debt/equity of 1.5x by FY16E (from the current levels of 3.1x).
ƒ Real estate monetisation begins
Alok has commenced its real estate monetisation process and has
contracted three deals, thus far. Alok expects to garner | 1,800–
2,000 crore through real estate monetisation over the next three
years. Of this, ~ | 1,400 crore is likely to be received in FY12,
another | 200 crore is likely to be realised in FY13E while the
balance would flow in by FY14E.
ƒ Operating leverage to kick in
Alok has completed a large part of its capex over the last few years.
We believe optimum utilisation of expanded capacities and reduced
costs will augur well for the company.
V a l u a t i o n
Alok has continued its robust performance for the last three to four years
on the back of expanded capacities. While revenues grew at a CAGR of
37%, PAT growth was a healthy 23% during FY07-11. Going forward, we
expect topline and bottomline to grow at a CAGR of 22% and 21%,
respectively, during FY11-13E. We value the stock at 3.8x FY13E EPS to
arrive at a target price of | 28. We have a BUY rating on the stock.
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A c c r u e s b e n e f i t s o f e n h a n c e d c a p a c i t i e s …
Alok Industries’ (Alok) Q1FY12 results were ahead of our expectations on
the revenue and operating margin front. Net sales increased 49.7% YoY
to | 1,644.9 crore (I-direct estimate: | 1,483.6 crore) led by strong volume
and value growth across segments. Exports registered growth of 38.5%
YoY to | 602.2 crore. The company reported an EBITDA margin of 27.5%
against our expectation of 24.7%. The EBITDA margin declined by 224
bps YoY due to increased raw material costs and higher share of
polyester segment (low margin business). Alok’s Q1FY12 PAT stood at |
57.8 crore in line with our estimate of | 57.1 crore. Higher interest cost
and increased depreciation led to PAT growth of 24.2% YoY. The
company has been able to monetise some of its real estate portfolio and
is hopeful of being free cash flow positive by FY13E. The management
also envisages debt reduction over the next three years and targets a
debt/equity of 1.5x by FY16E (from the current levels of 3.1x).
ƒ Real estate monetisation begins
Alok has commenced its real estate monetisation process and has
contracted three deals, thus far. Alok expects to garner | 1,800–
2,000 crore through real estate monetisation over the next three
years. Of this, ~ | 1,400 crore is likely to be received in FY12,
another | 200 crore is likely to be realised in FY13E while the
balance would flow in by FY14E.
ƒ Operating leverage to kick in
Alok has completed a large part of its capex over the last few years.
We believe optimum utilisation of expanded capacities and reduced
costs will augur well for the company.
V a l u a t i o n
Alok has continued its robust performance for the last three to four years
on the back of expanded capacities. While revenues grew at a CAGR of
37%, PAT growth was a healthy 23% during FY07-11. Going forward, we
expect topline and bottomline to grow at a CAGR of 22% and 21%,
respectively, during FY11-13E. We value the stock at 3.8x FY13E EPS to
arrive at a target price of | 28. We have a BUY rating on the stock.
15 February 2011
IDFC research, ALOK INDUSTRIES
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• Alok Industries is a fully integrated textile company and one of the largest textile manufacturers in the country.
• The company has been displaying healthy operational performance. It has been able to pass through rising cotton
prices, which has protected margins. This, along with increasing end-user demand, has helped the company deliver
strong volume growth. Alok’s export growth has been outperforming its domestic growth.
• It recently purchased a substantial proportion of its cotton requirement at Rs39,000 per candy (1 candy = 356 kg) as
against prevailing prices of Rs48,000-50,000 per candy. This low-cost inventory should provide a cushion for the
coming quarters amid rising cotton prices.
• The company added 20 ‘H&A’ stores in Q3FY11, taking the total number of stores to 271. However, it has reduced its
store target for March 2011 to 350 from 400 earlier.
• Alok plans to incur capex of ~Rs8bn, mainly in polyester and cotton spinning. It has a capacity of 0.34m spindles in
cotton spinning, which it aims to increase to 0.4m. With the commencement of its second polyester plant, total
capacity would increase to 0.4m tpa (from 0.2m tpa now). The company is also planning an additional 0.2m tpa in the
polyester segment.
• It has captive power capacity of 70MW, of which 15MW is contributed by a gas-based plant in Vapi. The balance
55MW comes from a plant in Silvassa, which operates on furnace oil. The company expects to run the plant on gas to
reduce production cost. It also has a parallel connection with the grid in Silvassa, from which it sources power at an
average realization of Rs4/ unit.
• Real estate: Alok has two commercial properties, Ashford Centre and Peninsula Business Park, which are ready for
sale. The properties are valued at ~Rs14bn. The company holds a 50% stake through a JV in a residential project in
Nahur, Mumbai, valued at Rs4bn.
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• Alok Industries is a fully integrated textile company and one of the largest textile manufacturers in the country.
• The company has been displaying healthy operational performance. It has been able to pass through rising cotton
prices, which has protected margins. This, along with increasing end-user demand, has helped the company deliver
strong volume growth. Alok’s export growth has been outperforming its domestic growth.
• It recently purchased a substantial proportion of its cotton requirement at Rs39,000 per candy (1 candy = 356 kg) as
against prevailing prices of Rs48,000-50,000 per candy. This low-cost inventory should provide a cushion for the
coming quarters amid rising cotton prices.
• The company added 20 ‘H&A’ stores in Q3FY11, taking the total number of stores to 271. However, it has reduced its
store target for March 2011 to 350 from 400 earlier.
• Alok plans to incur capex of ~Rs8bn, mainly in polyester and cotton spinning. It has a capacity of 0.34m spindles in
cotton spinning, which it aims to increase to 0.4m. With the commencement of its second polyester plant, total
capacity would increase to 0.4m tpa (from 0.2m tpa now). The company is also planning an additional 0.2m tpa in the
polyester segment.
• It has captive power capacity of 70MW, of which 15MW is contributed by a gas-based plant in Vapi. The balance
55MW comes from a plant in Silvassa, which operates on furnace oil. The company expects to run the plant on gas to
reduce production cost. It also has a parallel connection with the grid in Silvassa, from which it sources power at an
average realization of Rs4/ unit.
• Real estate: Alok has two commercial properties, Ashford Centre and Peninsula Business Park, which are ready for
sale. The properties are valued at ~Rs14bn. The company holds a 50% stake through a JV in a residential project in
Nahur, Mumbai, valued at Rs4bn.
14 January 2011
HSBC Smart Idea :: Buy Alok Industries Ltd
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Alok Industries Ltd Buy
Alok Industries Ltd, one of the largest textile companies in India, is a
vertically integrated company having operations from spinning to
garmenting and home textiles stage to retailing stage. It operates in
cotton as well as polyester segment with a balanced revenue mix to
garner opportunities in the optimistic demand scenario of textile sector.
Reaping the benefits of the aggressive expansion undertaken in the last
six years, Alok Industries is in a sweet spot to benefit from global vendor
consolidation.Growth Drivers
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Alok Industries Ltd Buy
Alok Industries Ltd, one of the largest textile companies in India, is a
vertically integrated company having operations from spinning to
garmenting and home textiles stage to retailing stage. It operates in
cotton as well as polyester segment with a balanced revenue mix to
garner opportunities in the optimistic demand scenario of textile sector.
Reaping the benefits of the aggressive expansion undertaken in the last
six years, Alok Industries is in a sweet spot to benefit from global vendor
consolidation.Growth Drivers
04 November 2010
Alok Industries : Diwali Mahurat Pick by Anand Rathi
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Alok Industries
The market outlook for textiles, particularly for Polyester Yarn & Fabrics is
improving very fast with increasing demand from global and domestic
markets and better realizations
Company is planning to invest Rs.900crs over the next 2 years to increase
capacity
FII’s have increased their holding in the company from 11.41% in June’10
quarter to 20.38% in Sept.’10 quarter
Promoters were able to release around 42% of pledged stocks
We expect company to report, superior results for second half of FY’2011
19 October 2010
Investment Idea - ALOK IND Strong BUY by Anand Rathi
Visit http://indiaer.blogspot.com/ for complete details ALOK IND
CMP 23.10
Strong BUY.
FII’s Holding, Pledged share & outlook update
According to latest holding pattern filings, the FII’s have increased their holding in the company from 11.41% in June’10 quarter to 20.38% in Sept.’10 quarter. That’s a hefty increase of 9% by FIIs, indicating strong interest of FIIs in this textile giant.
Further as per our information [data available to us], the promoters, [who are holding 28.3% stake]; were able to release around 42% pledged stocks [earlier 100% of promoters stake was pledged] and it is very likely that they will be able to get more stocks released from lender’s clutched, as textile markets will improve further.
The market outlook for textiles, particularly for Polyster Yarn & Fabrics is improving very fast with increasing demand from global and domestic markets and better realisations. It is interesting to note that – Chinese domestic demand is also very strong leading to reduced Chinese supplies in global markets. This is leading to Indian players grabbing higher export market with better realizations..
Company is also planning inn investing further Rs. 900 crs over the next 2 years in increasing capacity in terry towels, bed sheets & polyester capacity ( doubling to 4 lakh tons a year by Decemeber). The order book is running full for the company as demand is robust globally and with improving competitiveness vis a vis China, the supplies to global markets is growing at a fast pace. The realizations are also growing in Polyster as differentials between cotton and polyster is rising sharply, with high cotton prices, This will push the margins also in to higher orbit.
It is also going in for increasing exports big time targeting 2500 cr exports from 1500cr in FY10. Along with various products, it is also exporting polyester yarn in big way.
We expect company to report, superior results for second half and we may revise upwards our earnings estimates, post Sept quarter results. Meanwhile we suggest strong buy in stock, with short term target of Rs 27/- and medium term target of Rs 32/-. BUY.
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