The Indian textile sector continues to be a significant contributor to the nation’s economic progress, with an upsurge in demand for locally-made clothing indicating a promising future. This extensive industry, rich in tradition and diversity, remains a key player in the global market.
Textile Industry in India – A Brief Overview
India’s textile sector ranks among the world’s largest, accounting for 4% of the global textile and apparel trade. The country excels in producing cotton, jute, and silk, holding the second position in global silk production. Additionally, India is responsible for 95% of the world’s hand-woven fabric. This sector is crucial to the Indian economy, contributing 2.3% to the GDP, 13% to industrial production, and 12% to total export earnings.
Dating back centuries, the Indian textile industry features a rich history and a diverse product range, from traditional hand-spun fabrics to modern industrial textiles. The sector’s strength lies in its extensive production of natural fibers like cotton, jute, silk, and wool, as well as synthetic fibers such as polyester and nylon, catering to various market segments domestically and internationally.
The industry comprises decentralized power looms, hosiery, and knitting, closely linked to agriculture for raw materials like cotton. India’s cultural heritage further enriches the sector, distinguishing it from other industries. Textile exports from India are projected to reach $190 billion by 2025-26.
Top Textile Stocks in India 2024 by Market Capitalisation
The following table highlights the leading textile stocks in India by market capitalisation:
| S.No. | Textile Stocks in India (as per market capitalisation) |
|---|---|
| 1. | Page Industries |
| 2. | KPR Mill |
| 3. | Manyavar-Vedant Fashions Limited |
| 4. | Swan Energy |
| 5. | Trident |
Overview of Best Textile Stocks in India as per Analyst Ratings
- KPR Mill
- Overview: KPR Mill, with over 40 years in the industry, is a leading player known for its vertical integration and diverse operations, including yarn, fabric, garment, and sugar production.
- Products: Offers readymade knitted apparel, fabrics, and various yarn types.
- Performance: ₹842.15 (Current Price) | -₹14.50 (-1.69%) This Week | +₹112.75 (15.46%) Past Year | P/E Ratio: 35.93
- Raymond
- Overview: Established in 1925, Raymond Limited is a global textile leader offering a range of fabrics including Worsted, Cotton, Wool blends, and Denim. The company also operates several well-known textile and apparel brands.
- Performance: ₹1,845.50 (Current Price) | -₹62.45 (-3.27%) This Week | +₹7.45 (0.41%) Past Year
- Arvind Ltd
- Overview: Based in Ahmedabad, Arvind Limited operates across multiple sectors including fabric and apparel, advanced materials, and real estate. The company is known for its wide range of fabrics and prominent apparel brands.
- Performance: ₹405.05 (Current Price) | +₹19.15 (4.96%) This Week | +₹238.00 (142.47%) Past Year
- Manyavar-Vedant Fashions Limited
- Overview: Specializes in ethnic and celebration wear, operating under brands like Manyavar and Mohey. The company has a significant retail presence in India and international markets.
- Performance: +₹45.05 (3.63%) This Week | +₹166.80 (14.89%) This Month
- Welspun Living
- Overview: Welspun World offers home textile products and flooring solutions, with a global distribution network. The company produces towels, bed linens, and various flooring products under multiple brands.
- Performance: +₹0.66 (0.36%) This Week | +₹62.88 (51.99%) Past Year
| Textile Stock | Price 1 Week Ago | Price 1 Month Ago | Price 1 Year Ago | Price 5 Years Ago | P/E Ratio |
|---|---|---|---|---|---|
| KPR Mill | ₹856.65 | ₹877.70 | ₹729.40 | ₹131.25 | 35.93 |
| Raymond | ₹1,907.95 | ₹1,866.20 | ₹1,838.05 | ₹591.05 | – |
| Arvind Ltd | ₹385.90 | ₹400.30 | ₹167.05 | ₹53.50 | – |
| Manyavar-Vedant Fashions Ltd | ₹55.50 | ₹47.60 | ₹57.58 | ₹13.15 | – |
| Welspun Living | ₹0.66 | ₹6.20 | ₹62.88 | ₹128.23 | – |
Factors to Consider Before Investing in Textile Stocks in India
- Raw Material Prices: Keep an eye on the costs and availability of raw materials such as silk and cotton, as they can affect stock prices and profitability.
- Market Trends: Assess overall market conditions and industry trends, including domestic and global demand for textiles and emerging consumer preferences.
- Management Quality: Review the management team’s experience and strategic vision.
- Financial Health: Analyze financial statements to assess revenue growth, profit margins, and debt levels.
- Competition: Understand the competitive landscape, including market share and competitive advantages.
- Export Market Conditions: Evaluate international demand for textile products and its impact on revenue.
Should You Invest in Textile Stocks?
Investing in textile stocks can be advantageous, but it comes with challenges such as fluctuating demand and international competition. Government policies also impact production costs and export potential. Thorough research and understanding of these factors are crucial before making investment decisions.
The Bottom Line
The Indian textile industry is evolving and maintains a strong global presence. While it presents investment opportunities, it also involves risks that must be carefully considered. Conduct comprehensive research and evaluate your investment strategy to make informed decisions in this dynamic sector.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The data and figures presented are based on publicly available information and may be subject to change. Before making any investment decisions, it is recommended to conduct thorough research, consult with financial advisors, and consider your individual investment goals and risk tolerance. The author and publisher of this article do not assume any responsibility for any investment decisions made based on the information provided.
Note: Data as on Sept 14, 2024
