Shah told CNBC-TV18, "We like many companies in the textile space, we like Rajasthan Spinning , Super Spinning and recently we picked up Bannari Amman Spinning Mills, that stock is looking very interesting. It is quoting at about Rs 105 and we recently met the management of this company and we are pretty confident about the long term of this company."
He further added, "The spindle capacity and the looms capacity is being quadrupled, like from 30,000 spindles it has been expanded to about 1,20,000 spindles and the expansion has just got completed very recently. The looms capacity is also moved up from 30 looms to about 130 looms. What is going to happen is that next year when we will have the full impact of this expansion the company's turnover could infact move up by almost about 60% and I am expecting the company to report the earnings of about 22-23 next year, which translates into a PE of just about 4. So the stock can do very well."
