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Investment Advisor Sanjay Chhabria says, the stock has a good pedigree of Coimbatore based Bannari Amman Group and at that time also I had mentioned that this is a long-term play on the textile sector.
Sanjay Chhabria believes that Bannari Amman is a long-term play in the textile sector. Chhabria thinks that it is better to hold on to the stock and advises investors to buy it at lower levels.
Chhabria feels that Murudeshwar Ceramics is likely to be one of the main beneficiaries of the ongoing construction and infrastructure boom in the country. He further states that the company enjoys one of the highest operating margins in the industry, mainly because it is into manufacturing of vitrified tiles, which is a highly valued product.
As regards to Zodiac Clothings, Chhabria says that the company has lined up aggressive expansion plans for its retail stores, riding on the organised retail boom going on in the country. He also informs that the stock trades at a very cheap valuation of 7.5 times FY07 earnings.
Excerpts from CNBC-TV18's exclusive interview with Sanjay Chhabria:
A: We had talked about this stock last month. At that time, the stock was quoting at around Rs 95-100 levels. Now the stock has gained around 30% in the last one month.
At present, I have a 'hold' call on this stock. The stock has a good pedigree of Coimbatore-based Bannari Amman Group and at that time too, I had mentioned that this is a long-term play in the textile sector.
It came as an IPO in October 2005 at Rs 135 per share to expand its spinning and weaving capacities and to foray integration into processing, garmenting and home textile facilities. It has invested in windmills for power generation also. So at the moment, I think it is better to hold on to the stock and investors could buy the stock at lower levels.
A: We had talked about this stock last month. At that time, the stock was quoting at around Rs 95-100 levels. Now the stock has gained around 30% in the last one month. 
