Alok Industries a Reliance Industries Company, Target Price
Check out complete details on Alok Industries acquisition by Reliance Industries Limited.
Alok Industries is growing with Upper Circuit each day, and investors are all happy. At the same time it is important to safeguard your money, along with growth the capital.
So what should be target?
Currently in times of COVID-19, it’s creating PPE kits and will be making them for long time now.
Reliance Industries Vision, in eCommerce.
Reliance want to be like Amazon. Do it?
No Reliance have different vision, it want to empower small businessman by providing them platform.
Reliance will play eCommerce like Alibaba and Amazon both.
Also in discussion to buy Future Retail.
Check out more details on Future Group and Future Retail.
I will say no one can predict future, and I don’t believe in making assumptions.
Also, after Reliance coming into picture there will be a lot of structural changes and optimization in company.
Reliance can also take Pareto Principle ie. 80:20 Principle to optimize business. GM in US also did the same. In 80:20 business cut down operation that consumes 80% time but only generate 20% revenues. and focus on those 20% operation that brings in 80% revenue.
Another thing for Reliance can be it will use the above Pareto Principle along with the operation that RIL retail business can use as consumption from Alok Industries.
In between these optimizations there might be ups and downs in revenue and profitability but in the end company will be in good state.
Alok Industries, Future Retails and Reliance Retail work hand in hand with great efficiency in price for manufacturing great quality products and reaching customers directly with huge sale.
My strategy is to keep the investment in company as I like to buy in companies for long run. Only dis invest when you thing company is not good.
Also, this don’t means that Alok Industries will keep on growing and stock price grow will never stop. No there will be a time soon when stock price of company will exceed all companies valuation. At that point one might thing to sell few.
But the real benefits of long term investment is not just taking out 100% or 1000% profits, but to create wealth.
When you invest in long term like Warren Buffett did with Coke, you will not just get increased capital, but will enjoy tax free Dividend for as long as you keep the stock.