Nirmal Bang, one of the leading equity research-cum-broking house, has recommended a buy call on Alok Industries with an intraday target of Rs 31.50.

In its latest research report, the firm said that Alok Industries is clearly a buy, so investors can accumulate Alok Industries on declines.

In addition, the firm has suggested a support level for the scrip at Rs 24.

The scrip of the company, on Thursday (June 12), closed at Rs 26.50 on BSE. Current EPS & P/E ratio stood at 3.10 and 8.27 respectively. The share price has seen a 52-week high of Rs 51.87 and a low of Rs 11.33 on BSE.

Mr. Sunil Khandelwal, chief financial officer (CFO), Alok Industries said, ``Looking at the indication from the top buyers, capacities for FY`2010 are almost booked.``

``There are also good amount of enquiries, which are expected to convert into orders, `` he added.

He indicated that Alok Industries as on June 05, 2009 had a strong order book position aggregating to Rs 7.50 billion.

Out of this total order book, the domestic orders of the company consisted of Rs 3.50 billion and export orders worth Rs 4 billion.

The company’s retail segment, Alok Retail (India) has decided to introduce 1,000 stores across India by the next two years.

``These stores would be set up across the country in Tier III and III cities,`` he said.

Mr. Sunil also said that the growth would take place via the `franchisee` path and also added that the company was in talks with private equity players for possible investment.

At present, the company has around 70 stores operational across India.

Alok Industries reported a substantial growth in its standalone net profit for the three month period ended March 31, 2009. During the three month period, the company’s profit surged 30.44% to Rs 701.00 million from Rs 537.40 million in the same quarter last year.

Net sales during the quarter increased 25.33% to Rs 9,083.90 million, whereas total income for the quarter surged 29.53% to Rs 9,247.50 million.