Alok Industries shares jump 80% in six straight sessions. Experts see more rally
Alok Industries shares have been in a bull trend since 2nd January 2024. In these six straight sessions, Alok Industrties share price has been hitting 52-week highs regularly. During the early morning session on Tuesday, Alok Industries shares opened upside and touched a new 52-week high of ₹39.05 per share, logging over an 80 per cent rise in the last six sessions.
According to stock market experts, Alok Industries shares are rising after the news of Reliance Industries investing in this company via a preferential route. Alok Industries informed Indian stock market exchanges on 2nd January 2024 that it has received ₹3,300 crore investment from the Sensex heavyweight. This attracted the attention of Dalal Street bulls and the penny stock started skyrocketing to its 52-week high regularly. However, stock market experts still see upside potential in this Reliance-backed scrip. They said that Alok Industries share price may go up to ₹48 apiece levels in the short term.
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Why Alok Industries share price is skyrocketing?
Speaking on Alok Industries share price rally, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Alok Industries shares are rising because Reliance Industries has invested ₹3,300 crore in this company. Reliance has bought a 9 per cent stake in Alok Industries by investing ₹3,300 crore. They bought these shares via a preferential route. This is the major short-term reason for the rise in Alok Industries shares.”
Alok Industries share price target
Expecting further upside in Alok Industries shares, Sumeet Bagadia, Executive Director at Choice Broking said, “Alok Industries shares are in a bull trend and it may soon go up to ₹39 apiece levels. So, those who have Alok Industries shares in their stock portfolio, are advised to hold the scrip for the ₹44 target maintaining stop loss at ₹33. Once it breaches the ₹39 hurdle, the stock may soon touch ₹44 and ₹48 per share target in the short term.”
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Alok Industries news
On 2nd January 2024, Alok Industries informed Indian stock market exchanges about RIL funding saying, “Further to our disclosure dated November 07, 2023, we wish to inform you that upon receipt of subscription money of Rs. 3,300,00,00,000/- (Rupees Three Thousand Three Hundred Crore Only) from Reliance Industries Limited, the Company has today, at around 2.00 p.m., allotted to Reliance Industries Limited 3,300,00,00,000 (9%) Non-Convertible Redeemable Preference Shares of Re.1/- each for cash at par aggregating Rs. 3,300,00,00,000/- (Rupees Three Thousand Three Hundred Crore Only), on the terms and conditions as approved by the shareholders of the Company vide special resolution passed on December 23, 2023.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decision.
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Published: 09 Jan 2024, 10:49 AM IST
