Best Textile Stocks to Buy in India

The textile industry in India is one of the oldest in the country and the country’s second-largest employer. The textile industry is incredibly diverse, with hand-woven, hand-spun, and numerous mills. Because it is one of the largest industries, it employs over 4.5 crore people, including 35.22 lakh handloom workers across the country.

India’s economy has benefited greatly from the textile sector. Since India makes a worldwide trade of clothing and textiles, the GDP of India has been boosted, which has brought a huge amount of revenue to India.

The textile business was one of the most hit by the epidemic. This was mostly due to the industry’s lack of alternatives, as workers were forced to strike. Furthermore, demand for many of their retail clients dropped precipitously. 

Despite the multiple obstacles that the textile industry faced during the pandemic, they discovered a silver lining and advanced in actual production. India is presently the world’s second-largest manufacturer of personal protective equipment.

List of Top Textile Stocks in India

The billion rupees textile companies in India have some of the top textile stocks in India and attract investors from across the nation and, throughout the world, because of their adaptability as an industry.

Trident Ltd

Trident Ltd., a member of the Trident group, was established in 1990, with its headquarters in Ludhiana. The organization has grown to be valued at over three billion dollars in just three decades under the leadership of the founder and Group Chairman, Mr. Rajinder Gupta.trident logo The business is a top producer of yarn and bath and bed linen. The company also produces chemicals, captive power, and paper made from wheat straw in addition to these other activities.

The company spans over 75 countries across six continents and comprises global retail brands like Ralph Lauren, Calvin Klein, JCPenney, IKEA, Target, Walmart, Macy’s, Kohl’s, etc.

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Lux Industries Ltd

Lux Industries is a hosiery company that was established in 1957. The business offers more than 100 products under 16 different labels.

Its brands include, among others, Lux Cozi, ONN, GenX, Lyra, and One8. Due to its advertising initiatives, Lux Industries may be among the most well-known businesses on this list.Lux Industries logo The corporation is recognized for investing a significant amount in its advertising, frequently featuring numerous notable Bollywood actors. Shah Rukh Khan, Amitabh Bachchan, Katrina Kaif, and Kartik Aryan are some of its current brand ambassadors.

The daily production capacity of Lux Industries, which has more than 11 manufacturing sites located throughout India, is 1.2 million garments. Lux started in 1957 as the go-to brand for the average person and is today the top pick for all customer demographics.

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Welspun India Ltd

Welspun India Ltd. is another top textile stock in India and one of the biggest producers of home textiles worldwide, established in 1985. The company’s product line includes carpets, linens, towels, and bathrobes, among other things. welspun logoWelspun India provides goods to 17 of the biggest retailers in the world. Among them are retail behemoths like Walmart, Costco, Kohl’s, Ikea, and Bed Bath & Beyond.

Welspun generates most of its revenue from exports, in contrast to other companies on this list. Up to 84% of its income is derived from exports. 

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Sheela Foam Ltd

Sheela Foam Pvt. Limited (Sleepwell) was established in 1971 and is based in Delhi. They were the first to manufacture P.U. Foam in India. They manufacture a range of mattresses, home comfort products, and technical products. sheela group logoThey provide a wide variety of P.U. Foam in both Ester and Ether types for various industrial applications such as automobile filters, electronics, aviation, footwear, furniture, and lingerie apparel.

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Grasim Industries Ltd

Grasim Industries Limited is the leading firm of the Aditya Birla Group. In 1947, it began as a textile manufacturer in India. Today, it is a global leader in VSF and India’s largest chemical (Chlor-Alkali-s) player. grasim logoThrough its subsidiaries UltraTech Cement and Aditya Birla Capital, it is India’s largest cement producer and Diversified Financial Services, player.

Grasim is the world’s largest producer of viscose rayon fibre, with exports to over 50 countries and about 24% market share. Textiles and related products contribute to 15% of the group’s turnover. Grasim is headquartered in Mumbai and has plants at Nagda, Kharach, Bharuch, and Harihar.

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Factors to Consider Before Investing in Textile Stocks

There are a few key factors to consider before investing in textile stocks. 

  • The first is the overall health of the economy. If the economy is struggling, demand for textile products is likely to be weak, leading to lower stock prices. 
  • Another important factor to consider is the competitive landscape. If there are a lot of competitors in the market, then prices may be driven down, which can impact profitability. 
  • Additionally, investors should consider the top management. It is the backbone of any organization since they are responsible for making strategic choices for the firm and play a critical part in determining the company’s fate.
  • Finally, it is also important to keep an eye on global trends. If there is a lot of uncertainty, the demand for textile products may be weak.

Conclusion:

The textile companies in India are distinct from the rest of the globe, and investing in textile stocks provides various advantages to investing in the top stocks in India. When we look at domestic desires, we see that the items are also culturally tied or distinctive. The textile sector is very cyclical, with swings in raw materials and other demand fluctuations.

Furthermore, to fulfill increased demand, capacity development necessitates significant capital expenditure. As a result of the industry’s capital intensity, margins and returns are narrow. As a result, the textile companies’ capacity growth plans and their potential to improve margins must be closely monitored.

Disclaimer: The provided information is solely for educational purposes. Investments in the stock market are prone to risk; thoroughly read all relevant documents or consult an expert before investing.

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