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Last Updated : May 06, 2015 11:01 AM IST | Source: CNBC-TV18

Look at Ashapura Intimates Fashion: Prakash Diwan

Prakash Diwan of Altamount Capital Management is of the view that one may look at Ashapura Intimates Fashion.

Prakash Diwan of Altamount Capital Management told CNBC-TV18, "Thanks to the fact that Ashapura Intimates Fashion is a stock that is listed on the SME segment of the exchange BSE. It is not yet very popular. If you see the kind of volume action, price action may be last couple of weeks it is tending to kind of start seeking some attention for the simple reason that this is one company that has created a wonderful brand for itself call Valentine in the lingerie business unlike Page Industries which manufactures for another brand."

"Ashapura Intimates Fashion owns the brand, has its own outlets, manufacturers the product and sits on a huge margin chain. The kind of exclusive brand outlets (EBOs) in Bangalore, Pune, Ahmedabad and even in Mumbai, they have received tremendous response. The pricing has been very smart and the quality of the product apparently is very good. Best part is, it is not just a lingerie manufacture, they have gone into a whole range of kids garments and night wear. They export a lot of stuff to the Middle East and North Africa region (MENA) market for the floral gowns that lot of African women wear. Those kaftan kind of stuff is very simple to make but has great value," he said.

"The fund activity is happening now; recently DSP just bought a chunk so that is the first institutional activity that we have seen because it is still on the SME exchange. Retail investors find it slightly prohibited to trade on the SME issue. Because you buy minimum 1,000 shares which is almost like close to Rs 3,00,000 of a trade. That becomes a little bit of a inhibiting factor but the company has completed two years on the SME exchange which makes it eligible to move on to the main board anytime now. That were to happen and you compare it with any of the other lovables and Page Industries, it is still available at 1/5 th of the valuations."

First Published on May 6, 2015 10:57 am