new Delhi. Multibagger Stock: America has banned cotton yarn coming from Xinjian region of China. The US has banned the import of cotton products, including cotton yarn, from the Xinjiang region over allegations of forced labor. This ban is expected to boost the export of Indian cotton yarn. HDFC Securities says that Indian companies will benefit from this.
The brokerage firm says that Vardhman Textiles is a leading company in this sector. Vardhman Textiles will benefit greatly by banning US Chinese Cotton Yarn and its stock may rise further. Therefore, investing in it can be beneficial and this share (Vardhman Textiles Share Price) has seen an increase of more than 127 percent in 1 year.
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this is strategy
HDFC Securities is of the opinion that investors should buy the stock of Vardhman Textiles in the range of Rs 2580-2600. If there is a decline, then buy gradually in the range of Rs 2230-2270. In the next 6 months, this stock can reach Rs 2,770 to Rs 3,030.
Export of cotton yarn will increase
HDFC Securities says that cotton yarn importers from western countries are looking for markets other than China for their imports. India is a major producer of cotton. In such a situation, India can be a major market for these companies. The long term outlook of cotton yarn looks very strong. Global retailers are also trying to diversify their supply chains. That’s why they are looking for markets other than China for shopping.
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Vardhman Textile’s figures are strong
The performance of the company has been very strong in the third quarter of FY 2022 (Vardhman Textails Q3 2022 Results). The company’s earnings have grown by 49 per cent on an annualized basis during this period and has been at an all-time high of ₹2,603 crore. HDFC Securities says that the current VTL’s Revenue/EBITDA/PAT may see an increase of 20/40/53% year-on-year in the period of FY 2021-24. It is worth noting that the board of the company has recently decided to split the face value of Rs 10 per share into shares of Rs 2 face value. Shareholders’ approval is yet to be taken for this.
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Tags: Multibagger stock, stock market, Textiles
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