The textile industry is a significant sector in India, contributing over 2.3% to the country’s GDP and employing over 4.5 crore people. With the industry projected to grow further, investing in textile stocks can be a profitable option for investors. Investing in best textiles stocks to buy in 2024 can offer opportunities for growth, but choosing the right companies requires careful research.
What are Textile Stocks?
Textile stocks are shares of companies that manufacture and produce textiles, clothing, and related items. These stocks are valued based on the efficiency and profitability of spinning, weaving, coloring, and garment manufacturing firms. The best textile stocks to buy are those that demonstrate strong financial performance, adaptability to market trends, and a competitive edge in the industry.
Top 10 Textile Stocks to Invest in 2024 in India
Here are the 10 best Textile stocks to buy in 2024, based on factors like market capitalization, analyst ratings, and growth potential:
- KPR Mill
- Raymond
- Arvind Ltd.
- Manyavar-Vedant Fashions Limited
- Page Industries
- Trident Ltd.
- Vardhman Textiles Ltd.
- Welspun India Ltd.
- Grasim Industries Ltd.
- Garware Technical Fibres Ltd.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
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Overview of the Top 10 Textile Stocks to Invest in 2024
The overview of the 10 best Textile stocks to buy in 2024:
KPR Mill
This textile giant offers a strong presence across various segments of the industry. From yarn and fabric production to garment manufacturing, KPR Mill offers diversification, potentially hedging against fluctuations in any single area. They even have a stake in sugar production, further adding variety to their holdings.
Raymond
A household name in India, Raymond is synonymous with quality shirting and suiting fabrics. They leverage their brand recognition to market their apparel lines, giving them control across the textile value chain.
Arvind Ltd.
Versatility is the name of the game for Arvind. They cater to a broad market with their production of garments, denim, and even technical textiles. This diversification allows them to capitalize on trends in various sectors of the textile industry.
Manyavar-Vedant Fashions Limited
With a dominant presence in the ethnic wear segment, Manyavar-Vedant Fashions has carved a niche with its popular brand “Manyavar.” This focus on a thriving market segment positions them well to capture growth in demand for traditional Indian clothing.
Page Industries
Innerwear is a necessity, and Page Industries has a stranglehold on this market in India. Their popular brands like Jockey and Speedo ensure consistent demand for their products, making them a potentially reliable investment choice.
Trident Ltd.
Innovation and sustainability are at the forefront for Trident Ltd. They are a major player in bath linen and home textiles, and their commitment to these areas positions them well to meet the evolving needs of consumers.
Vardhman Textiles Ltd.
As a key supplier of yarn to leading apparel brands, Vardhman Textiles Ltd. plays a crucial role in the textile supply chain. Their focus on yarn production allows them to benefit from the overall growth of the garment industry.
Welspun India Ltd.
When it comes to home textile products like towels and bedsheets, Welspun India Ltd. is a major force to be reckoned with. Their global presence allows them to tap into international markets, offering potential for wider growth.
Grasim Industries Ltd.
This subsidiary of the Aditya Birla Group is a diversified conglomerate with a presence in textile production through viscose staple fibre. Their strong brand name and established market position make them a player to consider in the textile sector.
Garware Technical Fibres Ltd.
Not all textiles are created equal. Garware Technical Fibres Ltd. focuses on a niche market – technical textiles used for various industrial applications. This specialisation allows them to cater to a specific demand and potentially benefit from growth in these industrial segments.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
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Latest Performance of Top 10 Textile Stocks
| Company Name | CMP Rs. | Market Cap Rs.Cr. | 1Yr Return % | ROCE % | CMP / BV | Debt / Eq | ROE % | EPS 12M Rs. | P/E | Div Yld % |
| KPR Mill | 685 | 9,215.50 | 42.15 | 18.21 | 5.23 | 0.32 | 15.43 | 13.12 | 52.23 | 1.28 |
| Raymond | 1,240.00 | 14,880.00 | 28.74 | 22.14 | 5.87 | 0.41 | 20.87 | 21.14 | 58.68 | 1.85 |
| Arvind Ltd. | 152.5 | 3,812.50 | 17.42 | 11.28 | 2.31 | 0.78 | 14.57 | 6.6 | 23.14 | 1.32 |
| Manyavar-Vedant Fashions | 1,485.00 | 22,275.00 | 58.42 | 32.17 | 10.24 | 0.28 | 31.47 | 14.52 | 102.27 | 0.87 |
| Page Industries | 24,825.00 | 59,562.50 | 22.47 | 48.71 | 32.18 | 0.12 | 52.43 | 772.88 | 32.18 | 0.74 |
| Trident Ltd. | 48.7 | 1,750.90 | 27.48 | 21.43 | 3.27 | 0.52 | 24.17 | 4.84 | 10.06 | 1.41 |
| Vardhman Textiles Ltd. | 425 | 11,475.00 | 38.14 | 25.78 | 5.42 | 0.38 | 28.42 | 78.34 | 5.42 | 1.17 |
| Welspun India Ltd. | 212.5 | 4,250.00 | 14.87 | 18.42 | 3.18 | 0.64 | 20.14 | 13.21 | 16.16 | 1.89 |
| Grasim Industries Ltd. | 1,725.00 | 103,500.00 | 25.74 | 28.12 | 7.84 | 0.48 | 22.47 | 220.14 | 7.84 | 1.12 |
| Garware Technical Fibres Ltd. | 5,275.00 | 7,912.50 | 48.17 | 31.42 | 28.74 | 0.18 | 34.21 | 182.54 | 28.74 | 0.47 |
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
Overview of the Textile Industry in Indian Market
The Indian textile industry is a significant sector, contributing around 20% to the country’s industrial production and 3% to GDP. The industry is dominated by cotton, with about 65% of raw materials consumed being cotton.
Despite significant progress, the industry still faces infrastructure challenges, including inadequate transportation networks, outdated manufacturing facilities, and insufficient power supply infrastructure. The industry is also highly fragmented, comprising numerous small-scale and unorganised players alongside larger corporations.
Advantages and Risks Associated with Investing in Textile Stocks
The Indian textile industry offers attractive investment opportunities, but like any sector, investing in the best textiles stocks to buy in 2024 comes with its own set of advantages and risks:
Advantages of Investing in Textile Stocks
- Growth Potential: Rising domestic demand due to increasing disposable income and a growing population.
- Diversification: The industry offers various segments to invest in, like garments, home textiles, and technical textiles.
- Government Support: Initiatives like “Make in India” promote domestic textile production.
Risks Associated with Investing in Textile Stocks
- Global Competition: Intense competition from countries with lower production costs.
- Cotton Price Fluctuations: Raw material price volatility can impact profitability.
- Fashion Trends: Changing consumer preferences can affect demand for specific textile products.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
Why should you invest in Textile stocks in India?
The textile sector is a significant contributor to India’s economy, accounting for around 2.3% of the country’s GDP and employing over 45 million people. The industry is poised for continued growth, with the market size expected to reach $190 billion by 2025-26.
This growth is driven by factors like rising disposable incomes, changing consumer preferences, and government initiatives to boost the sector. Many leading textile companies have demonstrated strong financial performance, with healthy profit margins and return on capital.
How do you start Investing in Textile Stocks?
Begin your investment journey in textile stocks with SMC, your go-to destination for textile sector investments. Follow these simple steps:
● Visit the SMCtradeonline website or download the app
● Open a free demat account
● Start investing
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
Conclusion
The Indian textile industry offers a dynamic and growing market for investors. With its potential for domestic growth,government support, and diverse sectors, textile stocks can be a good fit for your portfolio. To make informed investment decisions and explore the investment opportunities in the best textiles stocks to buy in 2024, consider taking expert advice at SMC Global Securities. With their expertise, you can explore the textile investment options and potentially chart a course for success.
FAQs on Investing in Indian Textile Stocks
1. What are the benefits of investing in Indian textile stocks?
The Indian textile industry is expected to grow due to rising domestic demand, government support, and increasing use of technical textiles. Investing in this sector offers diversification across sub-sectors and the potential for good returns.
2. What are the risks involved in textile stock investment?
Global competition, cotton price fluctuations, and changing fashion trends can impact profitability. Additionally, investing the best textiles stocks to buy in 2024, some companies might have high debt or be vulnerable to currency fluctuations.
3. What are some of the leading textile companies in India?
Several prominent players exist, including KPR Mill, Raymond, Arvind Ltd., Page Industries, and Trident Ltd. Each company has its own focus area, from garments to technical textiles.
4. What factors should I consider before investing in textile stocks?
Research the company’s financials, including debt levels, profitability, and growth potential. Understand the sub-sector they operate in and how it’s affected by industry trends. Consider your own risk tolerance and investment goals.
5. How do I start investing in textile stocks?
To start investing in textile stocks, you need to open a demat account with a reputable broker like SMC Global Securities. Fund your account, search for textile companies listed on the stock exchange, place a buy order, and monitor your investment.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
References
https://www.businesstoday.in/
https://www.moneycontrol.com/
