GauravBlog Logo

A Lion’s eye on the Bulls and Bears

“In India, companies may fall sick, but promoters rarely do!”

Gaurav's Blog


March 25, 2011

South Africa choke yet again in the Knockout Phase of World Cup Cricket…lose to New Zealand in the QF

I don’t think anyone really knows how South Africa does this !…of always and unfailingly choking in their first Knockout Phase Match in  World Cup Cricket after winning nearly all of their League matches…it’s as if they just give up when faced with a situation that if they lose the match they are knocked out !….Pressure…Character…Temperament….Big Match Psychology…Coping with History….all being tested….and South Africa repeatedly failing….they may enjoy the reputation of being a superbly professional,clinical and well knit side in all departments of the game…with some individual world best too…like Allrounder Kallis and Pacer Dale Steyn…… but today’s loss once again raised the question that in Big Matches it goes beyond being just clinically and professionally brilliant…you need emotion and passion too in abundance   

Today at Mirpur in Bangladesh Favourites and Group B Champions,South Africa lost to underdogs and Group A fourth ranked New Zealand in the third Quarter Finals of the 2011 World Cup….they were chasing a modest and gettable 222 to win and were comfortably placed at 108 for 2….and inexplicably they slumped to 146 for 8 before winding up for 172 in the 44th Over ! 

This is not to take anything away from the gritty New Zealanders….Vettori returned to captain the side and the Team fielded superbly…Man of the Match , 6 +Footer Jacob Oram timing his jump brilliantly while taking a blinder at the fence to send back Kallis and going on to take 4 wickets too

NZ move on to Colombo for the Semi Finals on Tuesday,March 29,2011…they will  take on the winners of the last QF tomorrow between fancied Sri Lanka and underdogs England…will underdogs prevail tomorrow too!?

In fact India play Pakistan at Mohali in the second Semi Finals on Wednesday,March 30,2011….so we would know who we shall face in the Finals if…no ! When we beat Pakistan….because just as World Cup History has shown that Losing becomes a Habit…South Africa choking everytime…..Winning too becomes a Habit…India has always beaten Pakistan in the World Cup

Next two Matches at Colombo…a QF tomorrow and a SF coming Tuesday….then Mohali on Wednesday for the second Semis and then Mumbai for the Finals on Saturday , April 2,2011 

Next should be an action packed Cricketing Week as the World Cup comes to an end after 43 days…it began on February 19,2011 with India and Sehwag thrashing Bangladesh…it will end on April 2,2011 with India  and both Sehwag and Sachin on his home ground thrashing whoever of NZ,Sri Lanka or England  for Dhoni to lift the 2011 World Cup…only the second in ten editions…1983 was the first when Kapil Dev was Captain  read more

Deepak Jain inquires about what to do with Alok Industries at Rs 21 as he’s sitting on a huge loss having bought at Rs 32….Interesting case

Alok Industries at Rs 21…Interesting case….Deepak Jain asks what should he do as his Purchase price was Rs 32 and he’s sitting on a huge loss

Well Deepak,Alok Industries has not exactly set the bourses on fire as it has not delivered to shareholders for years….but I noticed that it was only in November 2010,a few months ago it touched a 52 week high of Rs 35 and since then has slid to Rs 20 levels….I am therefore assuming your entry into Alok Industries is fairly recent….you are concerned at this ‘huge’ loss as you put it…clearly your Risk Profile should not have allowed you to begin any big exposure in Alok….as you seem to be sweating on this fall inside months

You have four options before you and I suggest you consider them keeping in mind your risk appetite

  • Immediately Exit fully at a Loss
  • Immediately Reduce Exposure by exiting partially at a Loss
  • Hold and Hope
  • Exit fully or partially when a nice Switching Opportunity presents itself

I would seriously consider the fourth Option

An Insider…with Decades of Experience in the Textile Industry…had warned me about Alok Industries several years ago….they simply do not have any USP Product Line and have to compete at extremely tricky margins that cannot become a sustainable model even if they attempt to play the Volumes game

This is what Alok Industries appears like to me… exists to just about survive and earn for all stakeholders,except for Non Promoter Shareholders !…it’s got into this warp and mindset functioning and will find it difficult to exit from it and start really adding genuine value to all Shareholders who are also part owners of the Company…so simply disregard all their ‘greening’ up of the Annual Report….In fact can you recall any Alok Brand !

The Promoters,Jiwrajkas continue to remain overly optimistic and even make tall claims and boasts despite conflicting realities….have a look at their Annual Report for 2009/10….”Doing More for Less” is their assertion…Hardly…..”Doing Less for More” is more like it….”Created value beyond economic profitability for all stakeholders ” is their other assertion…judge for yourself from below


Payouts in Rs Crs to Stakeholders in FY 2009-10



Rs Crs Payout





(Direct Taxes)



Salaries & Commission
(see below table)






Dividend of 2.5%=> Rs 0.25/share => less than 8% of Net Profit of Rs 247 crs

(of which 5.58 crs go to 20 Promoter Group Shareholders as they hold 28.35% of the Equity)


 Payouts in Rs Crs  to Promoter Directors





Mr. Ashok B. Jiwrajka  ,
Promoter Executive Chairman




Mr. Dilip B. Jiwrajka ,  Promoter
Managing Director




Mr. Surendra B. Jiwrajka , Promoter
 Joint Managing Director




Mr. C.K. Bubna ,Executive









    There are over 177000 shareholders ! and Deepak you are in good company as several FIIs,DIIs and Banks and MFs are shareholders…have a look at some 


Scrip Code :  521070

Quarter ending :  December 2010


Shareholding belonging to the category
“Public” and holding more than 1% of the Total No.of Shares

Sl. No. Name of the Shareholder No. of Shares Shares as % of Total No. of Shares


 Caledonia Investments PLC




 Caledonia Investments PLC FDI




 Life Insurance Corporation of India








 Axis Bank Ltd




 Sloane Robinson LLP A/c SR Global(arutius) Ltd (Class B Asia)




 CLSA Mauritius Ltd




 State Bank of India




 IL&FS Trust Company Ltd A/c IL&FS Pvt Equity Trust – Leverage India Fund




 IDBI Bank Ltd




 LEGG Mason Southest Asia Special Situation Trust




 Macquarie Bank Ltd







On the face of it all the above seem genuine Investments and not fronts…maybe ,Deepak,if you have access to anyone of these above shareholders,ask them why they are holding Alok Industries !?……. but it was amusing to note that in April 2009 when Alok Industries launched a huge Rights Issue of Rs 450 crs for just Rs 11 per share in an 83:40 ratio,it was subscribed just about 1.15 times !….In March 2010 it was able to do a QIP at Rs 23.32 per share for Rs 425 crs….In the Heady Years before of 2007-8 the FCCB Conversion was done at Rs 61.5875 and Preferential Allotments to Promoters  at Rs 102 per share ! read more

Heart’s beating again !….India knock out three times consecutive World Cup Cricket ODI Champions Australia in the QF

Phew !…Heart has started beating again….India at 180 odd for 5 with set Virat Kohli having holed out a juicy full toss from David Hussey to short midwicket,Gambhir trying desperately to get run out and succeeding the third time ! and Dhoni squaring it to Point…..last recognised pair Yuvraj and Raina at the crease and chasing 261 to win….run a ball…..could hear the Silence all over India !…the debate was yet out that Yusuf Pathan should have played intead of Raina…one more wicket would have exposed India’s lower order

But Man of the Match Yuvraj and Raina took India home sharing an unbeaten sixth wicket partnership of 74 runs….Three Times consecutive World cup Cricket ODI Champions,Australia were knocked out of the 2011 World Cup….Captain Ponting’s ton going in vain…..the match was poised to go down to the wire….but Yuvraj thrashed Bret Lee for 14 runs in an over and of another 13 runs were scored….Batting Powerplay commenced in the 46th over with a Six of the first ball of a Lee over by Raina…… Australian Players bodies sagged and it was clear they had given up the fight….In fact Ponting missed a trick….he should have tightened his field when Kohli and Gambhir were milking them for singles…..the Australians gave us 50 to 60 runs too easy

Was watching the match with friends…blew the IPL ‘Mumbai Indians’ big horns (like vuvuzelas) to celebrate India’s win and had some Coke Float….

We play Pakistan in the Semi Finals in Mohali on Wednesday,March 30,2011 and Dhoni may not change this winning combination….Pathan may get a game only if Sehwag does not pass a fitness test….Sehwag was included today after passing one…Mohali wicket will need two seamers….Munaf Patel may be persisted with as Nehra has cost us a game already and temperamental Sreesanth has yet to get a game

One thing is sure….atleast one country from the subcontinent will feature in the Finals at Wankhede Stadium in Mumbai on Saturday,April 2,2011

For the QF my Son has gone to Ahmedabad with friends and my nephew from New Zealand who’s come down specially for the World Cup….he just called me saying the organisation was simply awful at the stadium…but it has been worth it…that they freaked out is an understatement…he has lost his voice !….he’s begging me to arrange tickets for the Mohali Semi Finals !…it’s a big one between two traditional rivals….Pakistan has never beaten us in the World Cups so far !….Such a clash is always a Huge Bonanza for the Organisers,the TV Channels broadcasting the match live and even I daresay for the Bookies ! read more

Scroll to Top