India is one of the leading countries when it comes to textile production. The textile sector in India is a major contributor to the country’s economy, and it employs millions of people. There are many good stocks in this sector, and here are ten of the best.
What is the textile sector in India?
The textile sector in India is composed of the production and export of various textiles, including cotton, silk, wool, and synthetic fibres. This sector plays a significant role in India’s economy, accounting for over 14% of its manufacturing output and 4% of its GDP.
The Indian textile industry is estimated to be worth $108 billion and is expected to reach $223 billion by 2021, with a compound annual growth rate of 12-14%. It also accounts for approximately 13% of the country’s total exports.
| Company Name | Recent Sales Growth | Net Profit Growth | Return on Equity (ROE) |
|---|---|---|---|
| Arvind Limited | 52.37% (last 4 quarters) | -5.38% (last 3 years) | 11.50% |
| KPR Mill Limited | 40.95% (last 4 quarters) | – | 27.40% (2017) |
| Bombay Dyeing & Manufacturing Company Limited | 60.92% (recent) | 23.27% (last 3 years) | 53.90% |
| Raymond Limited | – | – | 23.03% |
| Gokaldas Exports Limited | 84.54% (last 4 quarters) | 22.06% (last 3 years) | 21.90% |
| Vardhman Textiles Limited | 45.90% (last 4 quarters) | 37.30% (last 3 years) | – |
| Alok Industries Limited | 40.25% (last 4 quarters) | Data not provided | 2.10% |
| Welspun India Limited | 12.58% (last 3 years) | 14.91% (last 3 years) | – |
Best Stocks in the Textile Sector in India
1. Arvind Limited
It is a leader in the textile industry, with a diverse portfolio including denim, advanced materials, and branded apparel. It has seen consistent growth in recent years and is expected to continue its success.
Arvind Ltd is a textile and apparel manufacturer based in India. The company has a history dating back to 1931, and today operates a variety of brands across the apparel sector. Arvind has seen strong growth in recent quarters, with sales up 52.37% in the last four quarters. However, this growth has not been consistent, with sales up only 3.76% in the last three years. Net profit has also been subdued in the last three years, down 5.38%. Arvind’s return on equity is good at 11.50%, while its debt to equity ratio is low at 0.60%.
2. KPR Mill Limited
is a vertically integrated player in the textile sector, with spinning, knitting, processing, and garmenting capabilities. Its stock performance has been strong over the last five years and it continues to expand its operations.
KPR Mill Limited is a textile company that has been in business for over 110 years. They are known for their high-quality, durable textiles. Some of their popular products include cotton yarn, bed sheets, and towels.
KPR Mill Limited has seen steady growth in recent years. Their Return on Equity has increased from 19.92% in 2014 to 27.40% in 2017. Additionally, their Net Profit has grown from Rs. 158 crore in 2014 to Rs. 245 crore in 2017. This growth is largely due to their expanding sales base; their Sales have grown from Rs. 1,584 crore in 2014 to Rs. 2,070 crore in 2017. KPR Mill Limited’s good performance in the last four quarters is also reflected in their Sales growth of 40.95%.
3. Bombay Dyeing & Manufacturing Company Limited
Bombay Dyeing is one of India’s oldest and largest producers of textiles and home furnishing products, with an impressive client list including major retailers like Walmart and Target. Its stock has performed well in recent years and it shows no signs of slowing down.
Bombay Dyeing & Manufacturing Company Limited is a strong, reliable company that has been around for many years. Even in tough times, the company has shown resilience and continues to grow. Its recent sales growth of 60.92% is a testament to the company’s strength and stability. In addition, its return on equity is still high compared to most other companies, at 53.90%.
This shows that Bombay Dyeing & Manufacturing Company Limited is a wise investment for anyone looking to put their money into a solid company. However, its sales growth has been sluggish in the past 3 years, at only 23.27%. This may be cause for concern for some investors, but it is important to remember that even the strongest companies have their ups and downs. Overall, Bombay Dyeing & Manufacturing Company Limited is a great company with a bright future and should be considered by anyone looking to invest in the stock market.
4. Raymond Limited
Raymond Limited is a well-known player in the textile and branded apparel space, with a strong presence in domestic and international markets. Its stock has seen steady growth over the last five years and it continues to expand its operations.
The company’s financial performance has been impressive in recent years. In particular, Raymond Limited’s stock returns have been significantly higher than the Nifty 50 index in the past year. This is due to several factors, including the company’s strong focus on value creation.
The company also has a good Piotroski F Score of 8.0, indicating that it is a high-quality business with strong fundamentals. Raymond Limited is also undervalued, with a price to intrinsic value ratio of just 0.809. This indicates that there is significant upside potential for investors who buy shares in the company.
In addition, Raymond Limited has reduced its debt levels significantly in recent years. This has helped improve the company’s financial position and increase its ability to generate profits.
Lastly, one of Raymond Limited’s key strengths is its impressive return on equity (ROE) of 23.03%. This indicates that the company is generating significant profits from its investments and creating value for shareholders. Overall, Raymond Limited appears to be an attractive investment opportunity with strong fundamentals and significant upside potential.
5. Gokaldas Exports Limited
Gokaldas Exports Limited is one of India’s largest garment exporters, with clients including major fashion brands like H&M and Gap. Its stock has performed well in recent years and the company continues to focus on expanding its export business.
Gokaldas Exports Limited is an excellent company that is growing rapidly. Over the past three years, their return on equity has increased to 21.90%. Additionally, their net profit has grown by 22.06% in the same period. Sales growth is also strong, with a rate of 15.10% in the past three years. This indicates that Gokaldas Exports Limited is a company that is worth investing in. Their sales growth has been consistently strong in the last four quarters, with a rate of 84.54%.
6. Vardhman Textiles Limited
Vardhman Textiles Limited is a major player in the spinning and yarn manufacturing segment, with a strong presence in both domestic and international markets. Its stock has performed well over the last five years and it continues to expand its operations.
- Over the past three years, Vardhman Textiles Limited has demonstrated impressive returns on equity.
- The company is growing at a healthy rate, with sales increasing by 13.53% in the last three years
- Net profit has grown by an impressive 37.30% in the last three years
- The company’s growth is stable, with sales increasing by 45.90% in the last four quarters
- With strong returns and steady growth, Vardhman Textiles Limited is a promising investment opportunity for investors.
7. Alok Industries Limited
is a major player in the textile industry, with a diverse portfolio including spinning, weaving, processing, garments, and retail. Its stock has seen consistent growth in recent years and continues expanding its operations.
AIL has been growing at a healthy rate in the past three years, with sales growth of 31.72%. The growth has been good in the past four quarters as well, with sales growth of 40.25%. However, return on equity (ROE) has declined versus the last three-year average to 2.10%. This could be due to the increased competition in the industry or other macroeconomic factors.
Despite this decline, AIL is still a strong company with a solid market position. Its products are popular across the globe, and it is continuing to grow at a healthy rate. Investors may want to consider investing in this company for its long-term prospects.
8. Welspun India Limited
Welspun India Limited is one of the world’s largest producers of home textiles, with clients including major retailers like Target and Walmart. Its stock has performed well over the last five years and the company continues to focus on expanding its global presence.
Welspun India Limited is a company that has been seeing healthy sales growth and net profit growth in the last three years. In addition, their debt to equity ratio has decreased compared to the previous three year average. However, despite these positive indicators, their TSR Growth Index and TSR Profitability Index are quite low. Additionally, their stock returns have been negative over the past year as well as the past three years when compared to Nifty. Lastly, their dividend yield is quite low at 0.20%.
The sales growth of Welspun India Limited has been healthy in the last three years, with a rate of 12.58%. This indicates that the company is doing well and growing at a good pace. Additionally, their net profit has grown at a healthy rate of 14.91% in the last three years. This is another indication of the company’s good performance.
9. S Kumars Nationwide Limited
It is a leader in the textile Industry, with a diverse portfolio including suiting fabrics, shirting fabrics, and home textiles. Its stock has seen steady growth in recent years and continues expanding its operations.
10. Sangam (India) Limited
It is a major player in the textile industry, with a focus on cotton yarn manufacturing and processing. Its stock has performed well over the last five years and the company continues to focus on expanding its production capacity.
FAQ
What are some leading companies in the sector?
Some leading companies in India’s textile sector include Raymond, Reliance Industries Limited, Aditya Birla Group, Arvind Mills, and Alok Industries. These companies have a strong presence both domestically and internationally, with exports reaching countries such as the United States, China, Bangladesh, and Spain.
Why should investors consider investing in this sector?
The growing demand for Indian textiles globally presents a great opportunity for investors. The government’s initiation of various schemes and programs to support the textile industry, such as the Amended Technology Upgradation Fund Scheme, also provides a boost to growth in this sector. Additionally, India’s increasing disposable incomes and growing fashion industry provide further potential for growth in the textile sector.
Conclusion
Investing in any of these top textile sector stocks could prove to be a wise decision for investors looking to tap into the success of India’s thriving textile industry. Do your own research and consult with a financial advisor before making investment decisions. Happy investing! However, it is important to note that the textile industry does face challenges such as competition from cheaper imports and fluctuating raw material prices. These factors may pose certain risks for investors in the sector.
