Phani Sekhar of Angel Broking told CNBC-TV18, "There is a lot that is yet to come in Sintex Industries but it all depends on how long one want to be in the game. In the very near term there are positives because the quarter gone by has shown that at least operationally the company has beaten expectations. Over the medium to long-term there are concerns about increasing capex and the working capital cycle not coming down. So both these things are putting a lot of pressure on cash flows despite that it seems that over the next few quarters the capex intensity is only going to increase and that too in textile."
"However, that will not be positive from a medium- term perspective but if you wait out for a period of two-three years then as the capex draws to its close and hopefully economic environment improves, these subdued valuations might give a very good kick up. So, it all depends on how long one want to be here," he added.
"If one want to be in Sintex for two-and-a-half-three years then I will not be surprised to see the stock at levels closer to Rs 70-75 also. One year is an awkward time horizon to invest in this stock because this stock might be continuously under pressure based on news flow where the currency is going because of its forex loans and generally where the leverage is headed which can be little higher also."
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