Best Textile Stocks to Buy in India 2023

One of India's most dynamic industries is the textile industry. After the spice industry, the Indian Textile Sector is preferred by both domestic and foreign investors.

International investors favour it as an industry because of its adaptability. Furthermore, after agriculture, the textile industry in India has historically been the only one to produce significant work opportunities for skilled and unskilled labour.

India's second-largest sector for creating jobs is still the textile industry. More than 35 million individuals across the nation have access to direct employment through it. In addition, India is the world's second-largest export industry of textiles and apparel, with US$ 44.4 billion in exports during the fiscal year 2023.

Since ancient times, India's textile industry has been a significant employer and exporter. It accounts for 2% of India's GDP, 7% of industrial production, and 11.4% of exports. With 4.5 billion directly employed workers, the textile and clothing industry is India's second-largest source of employment.

Regarding employment, output, and exports, the textile industry is an important sector of the Indian economy. Since the post-pandemic slump, Textile Stocks in India have experienced a significant price increase.

In this blog, we have compiled a list of the top Textile Stocks in India. Continue reading to learn more about the same.

Best Textile Stocks in India 2023

Let us review the top Indian stocks in the Textile Sector now that we have a better understanding of this billion rupees industry.

Factors to Consider Before Investing in Textile Sector Stocks

Here are some important factors you should consider when investing in textile industry shares-

• Market Capitalization

Using market capitalization correctly can help you avoid overpaying for an investment.

• Consistency in Profit

A declining share count with a constant profit may indicate higher value for an investor.

• Long-Term Investments

It is advisable to look for long-term investments with favourable price-to-earnings ratios as they may be profitable.

• SEBI Governance

The safest and most secure way to deal with stocks is to use a stockbroker registered with SEBI (Securities and Exchange Board of India), so be sure to consider your reasons for buying a stock before you make the purchase.

Best Textile Industry Stocks: An Overview

Here is an overview of the top textile shares-

1) Trident Ltd.

The flagship company of the $1 billion Indian business conglomerate and world-player Trident Group, with its headquarters in Ludhiana, is Trident Limited.

Trident began modestly in 1990, but under the visionary guidance of its founder and Group Chairman, Mr. Rajinder Gupta, the company has grown over the years to become one of the world's leading industrial home textile manufacturers.

The company manufactures a wide range of yarn, bed and bath linen, paper, chemicals, and captive power. Modern manufacturing facilities for Trident are located in Budni and Barnala (both in Punjab) (Madhya Pradesh). The company has a sizable market share and is one of the biggest exporters of home textile products. 

2) Lux Industries Ltd.

Thanks to advertising campaigns, Lux Industries may be one of the most recognisable brands on our list. Since its founding in 1957, Lux Industries has operated in the textile market. In addition, the business provides more than a hundred other products across its 16 lines.

It carries several brands, including One8, Genx, Lyra, Lux Cozi, and ONN.

3) Welspun India Ltd.

In terms of sales, Welspun India ranks third among textile companies in India. Welspun India Ltd., a global leader in home textiles and a member of the USD 2.7 billion Welspun Group, provides goods to 17 of the top 30 global retailers.

The manufacturing facilities of the companies in India are set up to deliver high-quality goods that meet international standards.

The top textile brands in India include Welspun. Currently, exports account for more than 70% of advanced textiles business. According to turnover, it ranks third among India's top 10 textile companies.

4) Vardhman Textiles

The second-largest textile company in India is Vardhman Textiles. Vardhman has been around for more than 50 years and is now one of the biggest textile companies in the nation.

Under the able direction of its chairman, Mr. S. P. Oswal, the Vardhman Group, which began modestly in 1965, has developed over the years into a major textile company in the modern era. Vardhman Textiles Limited is an example of ongoing commercial expansion and extensive industry knowledge today.

The Group, which manufactures yarn, fabric, acrylic fibre, clothing, sewing threads, and alloy steel, has grown over the years into a business conglomerate with operations in India and 75 other nations. One of the biggest textile producers in India is Vardhman, which also has a significant market share and an ethical business strategy.

5) Sangam India Ltd.

Sangam India Ltd. was established in 1984 and is one of the top producers of cotton, OE, and PV-colored yarn, as well as a fabric weaver. The company, traded on the BSE and NSE, produces 35 million meters of PV fabric and 48 million meters of denim fabric each year. This production level is possible by a ready manufacturing base of about 2,36,000 spindles and 2300 rotors.

The company's flagship brand, Sangam Suitings, has a pan-Indian community of 10,000 merchants and operates through a distribution channel. On the stock exchange, it is worth 1323 crores of Indian rupees. Sangam Group is actively interested in social welfare and its active business ventures.

6) Nitin Spinners Ltd.

With an impressive 15% market share and a sizeable portion of fabric exports in the total production of the Indian hosiery industry, Dollar Industries Limited has developed into one of the best Textile Stocks in India in 2023.

Additionally, it has developed a significant following on social media and e-commerce platforms. In 29 Indian states, Dollar Industries Limited has a sizable presence.

Also, the products have grown outside of India, where they are now the most well-known Indian innerwear brand in the UAE and the Middle East. Leading hosiery and knitwear manufacturer Dollar Industries Limited has a fully integrated production facility. In addition, Dollar installed a four-megawatt solar energy plant at Tirupur's manufacturing facility in 2020. Their market value now is Rs. 3,052 crores.

7) The Raymond Organization

The Raymond Group is a diversified organization with most of its business interests in the textile and apparel industries. However, it also has a presence in several other sectors, including FMCG, Engineering, and prophylactics in domestic and foreign markets. It is the fourth largest among the top 10 textile companies in India.

Since Raymond is a vertically and horizontally integrated textile manufacturer, it creates "The finest fabric in the world." A vast network of more than 20,000 points-of-sale in India and more than 1100 exclusive stores spread across 380+ cities make Raymond and its brands accessible in Tier IV and V cities.

Conclusion

The unique moats in place make the Indian textile industry stand out from the rest of the world. Additionally, this has several benefits for the best Textile Stocks in India.

When we look at domestic demands, the products are also tied to or specific to certain cultures. Investors who invest in the textile industry also need to be aware of a fresh set of difficulties. These include the advantages of festival season and cyclical price changes.

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Research Analyst - Bavadharini KS

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here
Research Analyst - Bavadharini KS