ALOK IND & GVK POWERS

POSTED BY SANJAY SINGH ON April 6, 2011 3:02 pm ONE COMMENT

I’ve Alok ind 500 shares @ 20.68 & GVK Powers 100 shares @ 28.55.

At what price should i exit?

I can wait for 6-8mths.

Kindly advice.

One reply on this article “ALOK IND & GVK POWERS”

  1. moneysights.com says:

    Hi Sanjay,

    GVK Power & Infra, while being a good company, the stock isn’t cheap. It is fundamentally amongst the better Power/ Infra stock to own. It has almost zero debt as of March 2010 balance sheet (a big plus for Infra cos these days) & very healthy EPS Growth. The point is can it give you decent return in next 6-8 months? Given the current valuation, it looks difficult, unless its quarterly earnings shows very high EPS growth. While we don’t give a BUY/SELL recos, upside looks long term & downside is also limited. You can get all the above information & take you own decision here – http://goo.gl/QHI1O

    Alok Industries – It looks decently under-valued. The company has m-cap of around Rs. 2,062 Cr, while it has cash on its books of Rs. 1,390 Cr. The company is trading below its book value – another BIG plus. The volumes are showing an decent increase in last 3 months. So there may be a buying interest.
    A BIG negative – the company’s current debt is huge – 8,000Cr plus. The payment capability of this debt is not the best in shape – interest coverage being only 2.3!
    So, it has a similar fate. Unless, the company grows its EPS or shows signs of debt payment capability, it doesn’t look like a screaming buy. But if you are aware of any bit about its earning estimates – it may just make sense to research this. Simply because its available at dirt cheap valuations. Do check this link for more info – http://goo.gl/rzrsQ

    Hope this helps.

    Santosh Navlani | moneysights.com

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today