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May 13, 2008, 04.10 PM IST
Rajan Shah from Angel Broking is of the view that one should switch from Arvind Mills to Vardhaman Textiles which could offer at least decent return in the 12-24 months time frame.
Shah told CNBC-TV18, "Arvind Mills has time and again disappointed actually. For the past 13 years, the company has disappointed on the consistence, this year there is no exception and there is hardly anything to talk on the fundamentals. The EPS is less than one; it is trading at 50 times. They are talking all big things actually; the management has in the past sometimes guided a very rosy picture but always fails to deliver numbers, this time yesterday they spoke about all big things but I think I am not very happy with the company’s management nor I am very happy with the performance of the company."
He furthr added, "In fact one would do better to switch to Vardhaman Textiles which is in the same space which is into textiles but into yarns and threads with a very clean management, the company’s stock is quoting at about Rs 120 levels at about 5 times the estimated earnings of about of Rs 24 in the current year, so at 5 times when you are getting the number one textile player in the country Vardhaman Textile, why get into a company which has failed to deliver time and again. This talk of actually hiving off non strategic assets and all that will keep all the stocks in Fancy or maybe the stock could move up to Rs 60 levels because it has fallen down from Rs 93 to Rs 35 and back now to Rs 51, so at that time I think he/she would do better to exit the stock completely and get into Vardhaman Textile which could offer at least decent return in the 12-24 months time frame."
Disclosure: Analyst has an indirect interest in all the stocks discussed today.
Action in Vardhman Textiles
May 23 2013, 16:33
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