Positive on cotton and polyster viscose: Avinash Gorakshekar, Edelweiss Financial Advisors

Avinash Gorakshekar, VP Research, Edelweiss Financial Advisors, in an interview with ET Now, gives his views on textile stocks


Would you buy into any of the textile counter?

Sangam India and stocks like Arvind for example, you could see good top line growth coming in at least for the next couple of quarters. Even on the pricing front what has been seen in the last six months it is going to be definitely some further price improvement is also coming but I think the market is probably slightly doubting whether this growth will actually percolate down to the bottom line because quite frankly cotton prices have come down so typically polyester viscose player like Sangam India, whether they would be able to see a decent kind of top line growth even in the current year. Last year they have shown a decent growth both in the top line as well as in the bottom line in fact the stock has actually been non performer actually typically after the results the stock has actually come off but if you see the numbers and the kind of growth forward there is definitely good amount of juice left in some select stocks like Arvind or may be a Sangam India even an Alok Industries which is more in the news because of some restructuring activity but the core business is definitely going to do well. So positive on cotton as well as polyester viscose.