Expect cotton prices to decline going forward: Vardhman Textiles

IIFL, in its report, has cut its earnings per share (EPS) estimate for Vardhman Textiles giving two reasons, one is that they expect the international cotton prices to fall upto 8 percent and secondly, the uncertainty with regards to goods and services tax (GST).

In an interview to CNBC-TV18, Neeraj Jain, Joint MD of Vardhman Textiles spoke about the latest happenings in his company and sector.

“The area under cultivation next year is expected to be much higher. So the overall crop seems to be better compared to this year and that is why there could be an expectation of higher inventory, so the prices may drop,” he said.

Jain further mentioned that current inventory will have an impact as prices fall down.