Wait and watch textile stocks: Vikas Khemani, Edelweiss Securities Limited

Vikas Khemani, President, Institutional Equities, Edelweiss Securities Limited, in a chat with ET Now, talks about the textile stocks.

What do you make of the run-up in some of the textile stocks, names like Nahar, Arvind, Raymonds?

While we do not cover specifically the entire sector there but from my understanding, I can tell you that one theme seems to be building in textile. The polyester demand is growing well, and in recent past, minimum wages in China has gone up and which has made India and other surrounding countries more competitive as far as the garment exports are concerned.

Whatever optimism we are seeing is lead by two things, a) the renewed momentum in exports from India and b) the domestic demand growth. If you have seen, textile sector in last 4-5 years, no significant capacity additions have happened, so any uptick in the demand, you will start seeing the pricing to do well and the stocks to do well.