Hold Arvind, advises Phani Sekhar

Phani Sekhar of Angel Broking told CNBC-TV18, "After a long period of time, Arvind seems to be finally getting its act together for the last one-to-one-and-half-year. The main business continues to be textile. However, they have found a way to monetize their land bank offlate, which is helping in good part to reduce the debt. With China’s focus more on value added apparels, I guess it is good news for players such as Arvind."

He further added, "The stock is operating at around 14 percent return on equity (RoE). It is very difficult for Arvind to increase its profitability by leaps and bounds from this point in time. It has to bank on its increased capacity or look out for new segments because competition is eventually going to catch up. A great deal of hope is there on the land bank monetization which is progressing satisfactorily. At this point in time, valuations look reasonable."

"Considering the fact that the stock has come into favour after very long time, it seems that it might attract some more new investors. One can stay on in Arvind for some more time, but I don’t think that over a really long period of time one can make wealth in textile business and stocks such as Arvind. So my advise is to stay there tactically maybe for six months, nine months and on a good rally exit out of that entire segment," Sekhar said.