Buy Arvind, says Baliga

Ambareesh Baliga of Karvy Stock Broking is of the view that one can buy Arvind.

Baliga told CNBC-TV18, "Arvind is basically into denims and the denim prices have been moving up especially in the last five-six months. At the same time the raw material prices, basically naphtha is one of the major raw materials for Arvind, have come down. So clearly there would be a margin expansion going ahead. So from that point of view we feel that the worst is over for the stock. I don’t think we will again see those levels of Rs 13-14. So even at these levels I think it is a decent buy. One should see levels of closer to around Rs 30-35 possibly in the next nine-twelve months."

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock or sector.