In my interaction with the management of Nitin Spinners they raised a very interesting point about HSN codes being split for reducing duty on cotton not produced in India.
Common sense says that AMBIKA could be the direct beneficiary.
But how long can they protect the niche they have in Extra Long Staple Cotton? and is there a risk of others also adding excess capacity there if govt gives incentives.
Also Ideally the co should add capacity and use cash if the duty on ELSC is removed, otherwise tough to see a lot of shareholder value being created.
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