Update: My information is changing and so are my views. The information gained includes:
- The more I listen to the Textile minister, the more it seems that FTA is his primary goal
- Increasing HNI activity going on in the textile sector (one example below)
trying to be value conscious as well now
@Ruchit_Shah – What is Gokek’s value in your opinion?
Imo, this is an early start. The sector is coming from a downturn and the market trying to discount the real numbers is yet to start. Whether is it peak valuations or not, depends upon the investor’s time horizons. There are some triggers that are yet to be achieved such as FTA or even sector consolidation. Peak valuations are often made at peak margins and my understanding says that we are far from froth. Likely, the game is just starting.
West has been diversifying from China. Indian manufacturers haven’t been able to gain anything and the current numbers are not close to the potential. Gokek’s and the Ministry’s are focussed on the same geographies/params. The froth will likely be there once all the triggers are in place.
Disclaimer: I’m invested in Gokaldas Exports. Me & my family members may be invested in other stocks whose names may or may not be mentioned here. This isn’t a BUY/SELL recommendation.
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