MESSAGES

bannari amaan spinning has sold its subsidiary company young brands apparels for rs 223 crore. this will go a long way in brining back bannari amaan spinning to its profitable ways. the company will cut down its debt and will be able to use the extra liquidity to improve the performance of its core business of cotton yarn spinning. the company has many tailwinds besides the sale of this division was a drain on the company. the biggest reason wby cotton yar companies suffered in the last one and a half years was that indian cotton price were quoting much higher than international prices. now things are back to normal and indian cotton prices are the lowest in the world and has become even cheaper compared to us cotton. in the last 1 month us cotton prices increased by 17 percent and india contton on mcx cotton futures increased only about 7.50 percent. this makes it even more profitable for indian yarn spinners in the local as well as the export market. capacity utilisation has also increased leading to even better margins and the huge inventory gains will help the company report bumper results in q4. and from fy25 onwards the entire sector will get re-rated and most of these beaten down stocks offer very good scope for large capital appreciation according to me. some textile stocks have already started moving et sutlej textiles . many other should follow next week.