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Best Textile Stocks in India Based on 5Y CAGR

11 June 20245 mins read by Angel One
The government of India has allowed 100% FDI in the textile sector under the automatic route. The market for Indian textiles and apparel is likely to grow at a 10% CAGR to reach US$ 350 billion by 2030.
Best Textile Stocks in India Based on 5Y CAGR
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The Indian textile industry is a weaving giant. It boasts a rich heritage, significant global market share, and promising growth potential. This begs the question: Should you include textile stocks in your investment portfolio?

Key Strengths of the Indian Textile Sector

  • Domestic Demand Powerhouse: India’s massive and growing population fuels a strong domestic demand for textiles. Rising disposable incomes further elevate this demand, creating a stable market base for textile companies.
  • Global Player: India is a major exporter of textiles and apparel, contributing significantly to global trade. This international presence strengthens the industry’s resilience and growth prospects.
  • Government Support: The Indian government actively supports the textile sector through various initiatives, such as the “Make in India” program. This fosters a favourable environment for textile companies to flourish.
  • Technological Advancements: The industry embraces automation and digitalisation, increasing efficiency and productivity. This translates to improved profitability for textile companies.

Top Textile Stocks in India Based on 5Y CAGR

Company Name Market Cap (In ₹ Crore) 5Y-CAGR (%)
KPR Mill Ltd 27,372.47 46.48
Swan Energy Ltd 19,765.02 42.35
Trident Ltd 19,046.73 41.00
Welspun Living Ltd 13,805.27 20.36

Note: The above stocks have been selected from the Nifty 500 universe and sorted on the basis of 5Y CAGR

  1. K.P.R. Mill Limited: KPR Mill is engaged in one of the largest vertically integrated apparel manufacturing Companies in India. The company produces Yarn, Knitted Fabric, Readymade Garments and Wind power. The company operates 6 State of Art Spinning Mills with a capacity to produce 1,00,000 MT of yarn and 10,000 MT of Vortex Viscose yarn as of March 2024. K P R Mill Ltd’s revenue fell -12.74% since last year’s same period to ₹1,708.61Cr in Q4 2023-2024. On a quarterly growth basis, K P R Mill Ltd has generated a 34.61% jump in its revenue in the last 3 months.
  1. Swan Energy Limited: Swan Energy Limited (SEL) was originally incorporated in 1909 as Swan Mills Ltd. (SML), a manufacturer and marketer of cotton and polyester textile products in India. The company has an installed production capacity of 1 lakh meters per day. During FY21 to 9M FY24, the company witnessed a CAGR of ~141% in total income.
  1. Trident Ltd: Trident manufactures and trades yarn, bath and bed linen, paper, and chemicals. During FY24, the company expanded the production capacity of the Towel Segment by installing 42 Looms (7200 Ton/pa), the Yarn Segment by installing 1,89,696 spindles for fine count enhancement, and the Sheeting Segment by 10.8 Mn meters per year in the process house and CSP.
  1. Welspun Living Limited: Welspun Living Limited is part of the Welspun Group, one of the world’s largest home textile manufacturers. The company offers a wide spectrum of Home & Technical textile products and Flooring solutions. The company registered a significant growth of 31% YoY in Domestic Consumer business with revenue of ₹ 5,502 million

Overview of Textile Industry in India

India’s textile sector is one of the country’s oldest industries, stretching back millennia. India is the world’s 3rd largest exporter of textile and apparel. India ranks among the top five global exporters in numerous textile categories, with exports anticipated to exceed $100 billion. The textile and apparel industry contributes 2.3% of the country’s GDP, 13% of industrial output, and 12% of exports.

The Indian government has implemented many export promotion measures for the textile sector and allows 100% FDI in the sector through automatic methods. The Indian textiles industry’s future appears positive, thanks to robust domestic consumption and export demand. India is focusing on several key projects to strengthen its technical textile industry. The market for Indian textiles and apparel is expected to increase at a 10% CAGR to US$ 350 billion by 2030.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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