CMP: Rs 154.65
The company also has a good presence in the US as well as in Europe, it adds. The report also highlights the point that while the company’s garments are sold in the offshore market, its fabrics are sold in the domestic arena. According to the broking firm, at a CMP of Rs 156, the stock discounts at an FY09E EPS of Rs 26.80 by 5.8 times and an FY10E EPS of Rs 43.80 by 3.5 times.
"Many textile employees from all over India are in a pickle after the textile industry, which has warned the government of 5-6 lakh lay-offs due to the global downturn ."
The main reasons are -
Higher Interest rate.
Global economic crisis.
ET writes " The Northern India Textile Mills Association (NITMA) said that none of its representatives was invited to the meeting convened by Prime Minister Manmohan Singh on November 3 to discuss the state of the economy."
The industry, directly and indirectly, employs about 35 million people.
Garment exporters have reported a 30-35 per cent drop in volume in the July-September quarter.
The Confederation of Indian Textile Industry (CITI) has estimated 6-7 lakh people are facing job threats because of a slump in export demand.
More readings in Economic Times.
