Best Textile Stocks in India

03 June 2024
9 min read
Best Textile Stocks in India
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(The stocks mentioned in the blog are as per Analyst Ratings and Market Capitalization)

The Indian textile sector has long contributed to the nation's economic advancement. With the ongoing surge in demand for Indian-made clothing, the sector is expected to rise in the near future.

Textile Industry in India - A Brief Overview

India’s textile industry stands as one of the world’s largest, making up 4% of the global textile and apparel trade. It is a major player in cotton, jute and silk production, with India ranking second in silk production worldwide. Additionally, a whopping 95% of the world’s hand-woven fabric originates from India. This industry contributes significantly to India’s economy, accounting for 2.3% of the GDP, 13% of industrial production and 12% of total export earnings.

Dating back centuries, the textile sector of India is one of the oldest industries in the country. It showcases a diverse range of textile products, ranging from traditional hand-spun textiles to modern, capital-intensive mills.

The industry’s strength lies in the robust production of natural fibres like cotton, jute, silk, and wool, to synthetic fibres such as polyester and nylon. This diversity enables India’s textiles industry to produce a broad spectrum of products suitable for different market segments, both domestically and internationally.

The textile industry of India primarily comprises decentralised power looms, hosiery, and knitting, forming the largest component of the sector. These segments are closely linked to agriculture, particularly for sourcing raw materials such as cotton.

Additionally, India's rich cultural heritage and traditions in textiles play a significant role, making the industry unique compared to others in the country. Furthermore, India's textile exports are projected to hit $190 billion by 2025-26.

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Best Textile Stocks in India 2024 as per Analyst Ratings

Here is a table outlining the best textile stocks in India in 2024 as per analyst ratings provided by the I/B/E/S database. We have selected analyst rating as a criterion to make this list as stock market analysts provide a rating to a stock after running in-depth market research :

S.No.

Textile Stocks in India (as per analyst ratings)

BUY Analyst Rating (in %)

1.

KPR Mill

100

2.

Raymond

100

3.

Arvind Ltd

100

4.

Manyavar- Vedant Fashions Limited

89

5.

Welspun Living

71

*Our stock selection criteria for top stocks based on analyst ratings are mentioned at the bottom of this blog.

Top Metal Stocks in India in 2024 as per Market Capitalisation

The following table gives the top textile stocks list as per market capitalisation in 2024:

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

*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog.

Overview of Best Textile Stocks in India as per Analyst Ratings 

Here is a summarised overview of the top Indian stocks in the textile sector as per analyst ratings:

1) KPR Mill

KPR Mill is a major publicly traded company known for its vertical integration and diverse business operations. With over 40 years of experience, the company has made a significant impact in the textile industry.

The company operates in 3 segments, including yarn, fabric, garment and sugar. It manufactures a wide range of textile products including readymade knitted apparel, fabrics and various types of yarn such as compact, melange, carded, polyester, etc. 

Its fabric products include various types like single jersey, interlock and ribbed fabric. Additionally, the company makes clothes for men, women, and children using different materials like cotton and organic cotton. KPR Mill Limited has some other companies under it called Quantum Knits Pvt. Limited and KPR Sugar Mill Limited. KPR Mill has a capacity to produce 1,00,000 million tonnes of yarn and 40,000 million tonnes of fabrics in a year.

2) Raymond

Initially incorporated in 1925 as the Raymond Woolen Mill near Thane Creek, Raymond Limited offers a wide range of shirting and suiting fabrics. The company provides options like Worsted fabrics, Cotton, Wool blends, Linen and Denim. It has a strong presence in the B2B sector through its garments business. Raymond manufactures suits, trousers, shirts and jeans for renowned fashion brands worldwide. 

It markets fabrics and apparel under various brand names such as Raymond Ready to Wear, Parx Ethnix, ColorPlus and Park Avenue. Additionally, Raymond is engaged in non-scheduled airline operations and real estate development.

As the largest integrated textile company globally, Raymond exports its suits to over 60 countries, including the USA, Europe, Japan, Canada and the Middle East.

3) Arvind Ltd

Arvind Limited is a textile manufacturing company in India, with its headquarters in Ahmedabad. The company operates in various segments: fabric and apparel, garments, advanced materials, brand and retail, real estate, telecom, engineering, internet, environmental solutions and more. Its fabric and apparel segment deals with denim, woven, knit and voile.

The advanced materials segment focuses on various products like industrial items, composites, protective fabrics and automotive fabrics. 

Arvind Limited produces a wide range of fabrics, including cotton shirting, denim, knits, bottom weights, jeans and shirts. Its subsidiaries include Arvind OG Nonwovens Private Limited, Arvind PD Composite Private Limited, Arvind Goodhill Suit Manufacturing Private Limited and Arvind Internet Limited. This company’s apparel brands include Calvin Klein, Tommy Hilfiger, U.S. Polo Assn, Flying Machine and Arrow.

4) Manyavar- Vedant Fashions Limited

Vedant Fashions Limited, an Indian company, focuses on making, trading, and selling ready-to-wear ethnic clothing for men, women and kids. Its product range includes ethnic and celebration wear for men, such as Indo-western outfits, sherwanis, jackets, kurtas and accessories like safas, juttis and malas. For women, the company offers ethnic and celebration wear clothes such as sarees, lehengas, kurtis, gowns and stitched suits. 

It operates under various renowned brand names like Twamev, Manyavar, Mebaz, Mohey and Manthan. The company has retail stores in more than 200 cities across 3 countries, with more than 600 stores and 11 international outlets in the United States and the United Arab Emirates.

5) Welspun Living

Welspun World is one of India’s fastest-growing global enterprises, providing home textile products, advanced textiles, flooring solutions, and more. The company primarily manufactures home textile products like bed linen, terry towels, and rugs.

Under home textiles, Welspun produces towels, bathrobes, mats, rugs, carpets, bedsheets, and various bedding items. Its power segment involves power generation, while the flooring segment includes tiles and grass tiles. 

Additionally, Welspun offers flooring solutions, advanced textiles, e-commerce, hospitality and wellness. Some of its flooring products include Welspun Ecolite, ResilonX and HealthyFloor. The company's brands include Staywell, Martha Stewart, Scott Living, WelLiving Home, Wimbledon and more. Welspun Living distributes its products to global retailers across the US, Canada, the UK, Europe, South East Asia and the Middle East for export.

Factors to Consider Before Investing in Textile Stocks in India

Following are some key factors you need to consider before buying textile sector stocks in India:

  • Raw Material Prices

Monitor the price and availability of raw materials like silk, cotton and synthetic fibres. Changes in raw material costs can impact textile stock prices and profitability.

  • Market Trends

When assessing textile stocks, look at the overall market conditions and industry trends. It includes understanding the demand for textiles, both domestically and globally, and keeping an eye on emerging consumer preferences.

  • Management Quality

Examine the management team's track record, experience, and strategic vision. Companies with effective leadership and sound decision-making histories are more likely to successfully navigate industry challenges.

  • Financial Health Performance

Analyse the textile company's financial statements to evaluate its financial health. Look at parameters such as revenue growth, profit margins, debt levels, and return on equity. A financially stable company is in a better position for long-term success.

  • Competition

When analysing competition, it is crucial to understand the company's competitive landscape. Evaluate its market share, competitive advantages and ability to withstand competition. A strong market positioning indicates growth potential.

  • Export Market Conditions

Consider the potential demand for textile products in international markets because it directly impacts revenue. Fluctuations in export demand have a direct influence on textile share prices.

Should You Invest in Textile Stocks?

Investing in textile stocks in India can be beneficial for some, but it is essential for you to be aware of the challenges involved. Fluctuating demand is one challenge, as it can affect the revenue and profitability of textile companies. Another concern is the competition from countries like China and Bangladesh, which offer similar products at lower prices.

Moreover, the textile industry is highly dependent on government policies, which can impact production costs and export potential. Therefore, it is crucial to thoroughly research and understand these challenges before making investment decisions in textile stocks.

The Bottom Line

The Textile Industry is one of the most evolving industries in India. Our country has carved a strong niche for itself worldwide and has been dominating various textile segments, including cotton, silk, jute, and many more.

While the textile industry might seem to be a lucrative sector to invest in, remember that it is tagged along with various risks as well. Hence, you must run a comprehensive study from your end before investing in textile stocks. Ensure to check the associated factors, your investment and risk appetite and then only make an informed decision.

You may also be interested to know

1.

Best Metal Stocks in India

2.

Best Healthcare Stocks in India

3.

Best IT Stocks in India

4.

Best Chemical Stocks in India

5.

Best EV Stocks in India

 

*Stock Selection Criteria for Top Stocks Based on Analyst Rating

Investors must carefully read through the following information on stock selection criteria while running through the stocks based on analyst ratings-

These stocks have been shortlisted as per Analyst ratings provided by the I/B/E/S (The Institutional Broker’s Estimate System) database, further aggregated by Refinitiv. Ratings are determined by analysts' forecasts of company performance, taking into account metrics like earnings per share, sales, and net income. These ratings should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).  

Before investing, investors must conduct independent research and not solely rely on the information provided here. This will allow investors to make appropriate investment decisions based on their financial goals, investment objectives and risk tolerance.

*Stock Selection Criteria for Top Stocks Based on Market Capitalisation

These stocks are chosen based on their market capitalization, which represents the total value of a company's outstanding shares. The selection is arranged in descending order, placing the largest companies first and the smaller ones later. This helps prioritize stocks based on their market size. 

It is important to note that market capitalization in no way guarantees a company’s performance or the returns from its stocks. However, it can be used as a criterion for shortlisting companies from within a sector. Investors should recognize that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. 

This stock selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).

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 - Aakash Baid

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Groww Invest Tech Pvt. Ltd. (Formerly known as Nextbillion Technology Pvt. Ltd) Ltd. do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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