The Indian textile industry has been a major employer as well as a source of exports for centuries. Today, it is worth 2% of India’s GDP, 7% of its industry output and 11.4% of its exports. The textile and apparel industry is the second largest employer in India, with 4.5 cr workers directly employed in the sector.
Why invest in the best textile stocks in India?
The textile industry shares had initially seen a temporary slump because of the pandemic, both due to a lack of workers as well as an acute lack of customers during lockdown. However, since then, the textile stocks in India has seen tremendous growth.The government has also recently opened up the sector to 100% FDI under the automatic route.
As of 2020, the Indian apparel market is worth $55 billion and is poised to experience double digit CAGR in the coming years. With increasing population and income levels, demand for textiles is expected to steadily increase.
List of top 10 textile stocks to buy in India
The following textile stocks come to mind when thinking about the best textile stocks in India:
|Company Name||P/E Ratio (TTM)||EPS Ratio (TTM)|
|Sheela Foam Ltd||55.68||48.40|
|Vardhman Textiles Ltd||6.28||54.92|
|Garware Technical Fibres Ltd||43.09||81.44|
|Go Fashion (India) Ltd||90.96||14.85|
|Swan Energy Ltd||-43.77||-5.38|
|Lux Industries Ltd||15.53||108.48|
|Siyaram Silk Mills Ltd||8.87||50.05|
|Jindal Worldwide Ltd||40.00||6.59|
Top 10 best textile stocks: Fundamentals
It is engaged in manufacturing and trading of yarn, bath and bed linen, alongside paper and chemicals. The company is worth ₹17,697 cr and its profits in 2022 have skyrocketed to over ₹834 cr (from ₹304 cr in 2021). Its share price has fallen by 11.2% in the last one year and hence it may see an upward correction soon.
Sheela Foam Ltd.
It is a company worth ₹13,146 cr and has seen profits of ₹217 cr in 2022. It mostly produces mattresses (Sleepwell is its flagship brand), technical foams and other home comfort products. Its share price has increased by 7.3% in the last one year.
Vardhman Textiles Ltd. –
This yarn and fabric-producing company is worth ₹9,968 cr. Its profits have soared to ₹1547 cr this year (from 410 cr last year). Its stock price has seen a 7.88% fall in the last 12 months, although it has grown by 89.27% in the last 3 years. Therefore this textile stock does hold potential for future growth to the previous resistance level.
Raymond Ltd. –
It is an India-based suit manufacturer. The company’s market cap is ₹7316 cr and it has made profits of ₹260 cr in 2022. The stock price has seen a whopping 142% growth in the past twelve months and is still growing.
Garware Technical Fibres Ltd. –
The company produces synthetic fibre-based products such as ropes and twines. It is worth ₹7236 cr and has made profits that are steadily increasing in the last 5 years to upto ₹165 cr in 2022. Since March 2022, the stock price has seen a growth of 32%.
Go Fashion (India) Ltd. –
It is an India-based clothing apparel company. The company is worth ₹7295 cr and has made profits worth ₹35.60 cr in 2022. Its stock price has increased by a significant 56.78% since March 2022 and can be considered a good buy.
Swan Energy Ltd. –
The company is a manufacturer and marketer of cotton and polyester textile products in India. It is worth ₹5476 cr, but it has been making losses in the last four years. This textile stock’s price has seen a 61.08% increase in the last one year.
Lux Industries Ltd. –
It is primarily engaged in the production of clothing apparel, especially innerwears. The company is worth ₹5067cr and has made profits of ₹340 cr in 2022. Its share price, however, has fallen by 51.50% in the last 1 year.
Siyaram Silk Mills Ltd. –
The company produces yarns, fabrics, garments etc and is worth ₹2081 cr and has seen huge profits of ₹216 cr in the past twelve months. The share price, however, has fallen by 12.71% in the last one year.
Jindal Worldwide Ltd. –
It is a textile company worth ₹5284 cr and has made profits this year of ₹109 cr. In the last twelve months, its stock price has increased by a whopping 89.93%.
The top textile stocks in India are ripe for investment as profits and share prices are generally increasing. Try to open a demat account and start investing in one of the above stocks today.
What are textile stocks?
Stocks of companies that produce and market textiles as a major component of their business are called textile stocks.
Can I buy textile stocks online?
Yes, you can buy textile stocks online by opening a demat account with a trusted online share trading platform.
Which is the best textile stock to buy?
Many of the above textile stocks are ripe for investment as they are poised to appreciate in value.
Has the textile industry recovered since COVID?
Yes, the textile industry has recovered since COVID and is posed to see double digit CAGR in the coming years.
What are the different types of textile companies?
There are several types of textiles in the market such as clothing apparel, jute bags, technical textiles, cloth-based packets and mattresses, bathroom and bed linen etc.
Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and not recommendatory.