Nirmal Bang has maintained its ‘Buy’ rating on Alok Industries to achieve a target of Rs 19.40 within 1-5 days.

Traders can buy the stock on dips with a stop loss of Rs 13.

Shares of the company, on Monday (April 13), closed at Rs 198.25 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 2.83 and 5.50 respectively. The share price has seen a 52-week high of Rs 66.34 and a low of Rs 11.33 on BSE.

Mumbai-based Alok Industries has queued up plans to develop its retail business, Home & Apparel (H&A), by doubling up its stores from the current 62, by the end of this year (2009).

Alok Industries also possesses 42.9% equity stake in Grabal Alok (UK) and works under retail ‘Store Twenty One’ and ‘qs’. Presently, it has 215 stores there and the business is likely to pick up this year.

The company entered retail business by getting hold of 79.62% stake in Czech-based manufacturing business —Mileta.

The company also said that it has finished growth plans worth Rs 2,000 crore at its plants in Vapi and Silvasa, Gujarat.

Alok Ind has added 48,000 spindles to raise its overall capacity to 299,712 as on March 2009 whereas weaving capacity has surged to 152.5 million metres from 10.9.9 million metres.

Alok Industries, on April 06, has declared that Credit Analysis & Research (CARE) have assigned the CARE A [Single A] rating for the company’s long term facilities having tenure of over 12-months.

CARE has also assigned PR1 [PR One] rating for the company’s short term facilities having a tenure up to one year as per BASEL II norms.

Alok Industries, in March 2009, has fixed March 25 as the record date for its right issue to be issued at Rs 11 a share i.e face value Rs 10 a share and premium of Re 1 a share. The company will offer the right issue in the ratio of 83:43.