Enter Arvind around Rs 70-72, says SP Tulsian

SP Tulsian, sptulsian.com advice traders to enter in Arvind around Rs 70-72.

Tulsian told CNBC-TV18, “I found Arvind numbers to be much better than what I was expecting. In fact the surprise has come from the branded garments. If you see the EBIT I am referring the results on a sequential basis, it has shown a growth of about or may be an increase in EBIT in the branded segments by about Rs 17 crore, and even textile has given an increase of about Rs 30 crore in the EBIT. In fact the kind of performance or the situation which has been prevailing in the branded retail garments when you talk to the people it has been doing very badly but the company has posted an EBIT of close to about Rs 15 crore in the quarter which was at negative Rs 3 crore in Q1 of FY13.”
He further added, “Overall I am not saying that numbers are too excited but on a sequential basis the numbers look good, on a y-o-y basis it looks bad. So, may be you can call the numbers more or less on the – the worst part that the interest burden has not been reducing in the companies books and that is in fact keeping the bottom-line little subdued. So, may be neutral kind of performance and that is the reason we are seeing some profit booking coming in, may be the share can correct to about Rs 70-72 and again that can be a good entry point for traders and investors.”