Yes, you can hold Alok Industries share. Alok Industries Limited is a publicly listed company and their shares are traded on the Bombay Stock Exchange (BSE). To hold their shares, you will need to set up a demat account with a depository participant (DP) and open a trading account with a stockbroker.
Once you have both of these accounts linked together, you can purchase shares of Alok Industries through the trading account. After the purchase is finished, they will be transferred to your demat account, where you can hold them till you decide to sell them.
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What is happening with Alok Industries?
Alok Industries, one of India’s largest integrated textile companies, has been facing severe financial distress since 2017 due to its mounting debt crisis. According to media reports, the company has a combined debt of around Rs43,000 crore, of which the lenders have taken charge in order to protect the interest of their constituents.
Alok Industries owes corporate lenders such as the State Bank of India, ICICI Bank and Axis Bank, along with other financial institutions such as LIC, PFC, Edelweiss and JM Financial.
In line with restructuring its debt, Alok Industries was approved for the corporate insolvency resolution process (CIRP) in 2019, thereby giving its lenders some assurance, as all of the company’s lenders were pulling out from debt restructuring plans due to their inability to reach a consensus.
An insolvency resolution professional (IRP) has been appointed by the National Company Law Tribunal (NCLT), and the IRP has proposed a corporate insolvency resolution plan to the lenders.
Under the proposed plan, the company has proposed a debt-to-equity swap wherein the lenders will convert their debt in the form of equity, thereby reducing Alok Industries’ debt to about Rs. 8,500 crore, and the lenders are expected to gain control of almost 94 per cent of the company’s equity.
The proposal includes the processing of the sale of land or other assets to reduce the debt further.
Unfortunately, Alok Industries’ debt crisis has been aggravated by the nationwide lockdown in India due to the novel Coronavirus pandemic, as it has led to a sharp deterioration in the company’s sales.
In addition, the company’s lenders have been battling with the IRP over the insolvency resolution plan, and the process has been hampered as a result.
While the resolution process drags on, Alok Industries has been allowed to raise funds (of up to Rs. 800 crore) in order to meet the corporation’s day-to-day obligations, such as salaries and wages. Thus, while the financial distress at Alok Industries continues, the company can at least operate its business in the interim.
Can Alok Industries be multibagger?
The answer to whether Alok Industries can be a multibagger or not depends on a variety of factors, such as the current state of the industry, the company’s balance sheet, its management, and the potential for future growth.
Looking at the current state of the industry, Alok Industries is a textile and apparel company and has been struggling since 2018. The current slowdown in the Indian economy, especially since the start of the Covid-19 pandemic, has caused the demand for clothing to plummet, and Alok Industries has been particularly hard hit.
On top of that, the Indian government has imposed various import duties on cotton, further exacerbating the situation. As such, while Alok Industries may eventually be able to turn things around, the current state of the industry may not bode well for potential multibagger status in the near future.
In terms of the company’s balance sheet, Alok Industries has reported losses for four consecutive fiscal years up to fiscal 2020, and is currently in a process of resolution via the corporate insolvency resolution process (CIRP).
The CIRP process involves the company undergoing a financial overhaul, and in this case, most creditors have voted to accept a non-cash restructuring proposal from a potential investor. If the restructuring is successfully implemented, this could be a major boost for Alok Industries, and it could set the stage for improved performance and possibly multibagger status.
The performance of any company is also heavily dependent on its management, and Alok Industries is no exception. The board of directors recently appointed Gaurav Chandak as CEO and member of the board, who is known to be an experienced professional with a track record of success.
The new CEO has also revealed plans to restructure the business model, aimed at aligning the production capabilities with changing industry needs, and has already secured a few prestigious contracts.
This suggests that the management will be able to steer the company in the right direction, increasing the likelihood of Alok Industries becoming a multibagger.
Finally, it is also important to consider the potential for future growth. Alok Industries is one of the leading players in the Indian textile and apparel industry, with over 4,000 employees, and a wide portfolio of clients across apparel and home textile segments.
The company also has a strong international presence, with customers in more than 50 countries. As India becomes increasingly attractive to domestic and international consumers, Alok Industries has a chance to capitalize on the growth potential and become a multibagger.
In conclusion, while there are certainly challenges in the current environment and a lot of uncertainty, there is certainly potential for Alok Industries to become a multibagger in the near future. The company has a strong balance sheet, experienced management, and potential for growth, all of which could help it become a multibagger.
Will Alok Industries rise in future?
The performance of Alok Industries over the last few years has been mixed. While the company’s share price has experienced some ups and downs, the future performance of the company is still uncertain.
In order to make an accurate prediction about the future of Alok Industries, it is important to examine the company’s recent performance, as well as its financial standing.
One factor that suggests that Alok Industries could rise in the future is its growing profits. In the last quarter, Alok Industries reported that its profits had increased by 18. 5%. This demonstrates that the company is continuing to be profitable and is showing positive growth in its profitability.
Another factor that could affect the company’s future prospects is its customer base. Alok Industries has a customer base of more than 10,000 companies worldwide and this customer base is continuing to grow.
This suggests that the company has a strong presence in the market and could benefit from further growth in customer numbers.
Finally, Alok Industries has also made a number of investments in the past few years. These investments have included the acquisition of new companies and the funding of research and development projects.
This could lead to improved products and services for Alok Industries customers, which could result in higher profits for the company.
In conclusion, Alok Industries does have some potential for growth in the future. However, any predictions about the company’s future performance should be based on an examination of the company’s current performance and financial standing.
Which share is to buy for holding?
When deciding which share to buy, there are several factors to consider and evaluate. Depending on the investor’s goal and risk appetite, they should evaluate the share’s past performance, current market conditions, and industry outlook.
It’s also important to consider the type of share, such as common stock, preferred stock, or unit trusts. The investor should then research the share’s dividend yield, dividend coverage, and management performance.
For those looking to hold a share for the long term, it is important to examine the company’s fundamentals, such as its cash flow, earnings, and balance sheet. A stock that is positioned for long-term success is likely to appreciate over time and provide dividends, as well as potential capital gains.
Additionally, focusing on stocks with a track record of sound corporate governance and efficient stewardship of capital are recommended.
Finally, investors should review analyst reviews and forecasts to gain insight into potential stock price movements in the short-term and how it may perform over the long term. Additionally, it is important to stay up-to-date with the stock market news and understand the macroeconomic conditions impacting the share.
Doing your own research and monitoring the share’s performance over a period of time is the best way to ensure informed and informed decision making when it comes to choosing the right share for holding.
Who owns Alok IND?
Alok IND is a manufacturing company specializing in household textiles and apparel, based in India. The company was founded in 1989 by Mr. Alok Gupta and is owned and operated by the Gupta family. The company has over 800 employees in three manufacturing sites in India, producing both high quality mass-market products as well as premium lines for international markets.
Alok IND has earned the reputation for delivering quality, innovation, and value to its customers. They are focused on producing products that are sustainable and eco-friendly, using the latest technologies to reduce its environmental impact.
Alok IND has also developed relationships with some of the largest global retailers, which allows the company to expand its reach and share its products with the world.
When was Alok Industries purchased by Reliance?
Alok Industries was purchased by Reliance in March 2017. The purchase was made through Reliance’s wholly-owned subsidiary, Reliance Industrial Investments and Holdings Ltd. The purchase was part of an Insolvency and Bankruptcy Code (IBC) resolution process and the total value of the deal was worth Rs 5,050 crore.
This acquisition was done with the aim to strengthen and expand the textile presence of Reliance across the country. The deal also marked the largest resolution of bankruptcy for a non-power sector entity under the IBC process.
