Alok Industries could an outperformer in small-cap space: Abhijit Chakraborty, Fortune Financial Services India Ltd
Alok Industries is going to see a change in its profile of earnings and ROEs.
Abhijit Chakraborty, Sr VP, Institutional Equities, Fortune Financial Services India Ltd, in a chat with ET Now talks about Alok Industries.
What is a smaal cap name which you would buy for the year 2011?
Though not exactly a small cap - relatively small - would be Alok Industries. This industry is doing great because of the shortage and increased demand of textiles and offshoring from India. Alok is going to see a change in its profile of earnings and ROEs because of its higher contribution of business coming from higher contributing margin of polyester. That is going to change the EBITDA margin and profile of the company along with 35-40% kind of an earnings growth. So it could be serious outperformer in the small-cap space.
What is a smaal cap name which you would buy for the year 2011?
Though not exactly a small cap - relatively small - would be Alok Industries. This industry is doing great because of the shortage and increased demand of textiles and offshoring from India. Alok is going to see a change in its profile of earnings and ROEs because of its higher contribution of business coming from higher contributing margin of polyester. That is going to change the EBITDA margin and profile of the company along with 35-40% kind of an earnings growth. So it could be serious outperformer in the small-cap space.
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