Folks, I am an investor in Himatsingka Seide. While I always used to think it's underpriced, I don't know what caused the sudden spurt in the share price? Is this due to rerating by brokerages Or is it due to the new liking toward textile stocks. Appreciate your comments. Thanks
Himatsinka is a good company. When I was researching about this company it was quoting around 130 rs. The company makes revenue through two subsidiaries and then the textile . One of the subsidiary is having retail stores from uk which is something like a branded store. Second one is in usa doing distribution for Tom brands etc. I thought as they are doing textile manufacturing, ll they be able to put on the retail stores they have in uk, but as the store is just for one brand that idea was not possible, if that was possible this company would have sold it at high margins and good growth was there. also I came to know that this company took loan to buy uk retail store brand at 2008 and unluckily recession came and it took this long for this company to wake up. Seeing all these factors the story did not impress me, so stayed away.
In textiles Vardhman Textiles is undisputed leader.RSWM is distant second.Rest of stocks are being played by so called experts,who will lose their shirts along with their followers .I am invested in Vardhman ,and being stake holder is having vested interest.U can enter only these two stocks in weakness after doing proper study and consulting your financial adviser.
@ krish: I was also observing this script for long time. It spikes very fast. Moved from 162 -180-198-203-208-218. It is almost trading near to 52 week high. Results are expected shortly. Many people having buy call as this firm has a good business model. Pls study the fundamentals of this if u plan to hold it for long term.Indeed I made some profit on this by doing intraday..Play safe. All the best bro.