Textile space looks interesting despite lofty valuations: ​P Phani Sekhar

In a chat with the ET Now, P Phani Sekhar, Fund Manager-PMS, Angel Broking, shares his views on the textile sector. Edited Excerpts:

ET Now: What is your view here on the textile space?

P Phani Sekhar: Arvind is not really an entirely textile play in the conventional sense. They have a lot of apparel front end business that is being valued at a premium. Stick to it and the complexion of the business changes completely. A lot of investors are fairly bullish on Arvind and you can see that on the ground. The management is now more confident in expanding the business. The numbers look much better than what they were.

The segment of textile business that is customer facing is doing well. It is also explained by lofty valuations which the new IPO, i.e Monte Carlo, is expecting from the market. There are investors who were willing to pay these kind of valuations so that segment of the market still looks good.