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[Dilip Davda] The company is largely doing trading in textile products with third-party contracts. Its major earnings are from exports. Rising margin earnings shown by it over the last three fiscals are surprising and raise eyebrows. In the context of its recent super earnings, its valuations are at the optimum level. The sustainability of such a margin going forward is a major concern. Dependency on third party contracts poses major risks. Government policy on trade with China, and recent clashes with Turkey pose threats for its export earnings. Cash surplus risk seekers may consider parking funds for the medium to long term. Read detail review...
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