Textile Stocks: The story of India’s textile industry is often overshadowed by flashier sectors. But have you ever wondered how this industry quietly leaves a lasting impact on every stitch of its progress? Their impact goes far beyond aesthetics. They provide a rich cultural heritage and act as a backbone for millions of people.

The textile industry empowers rural communities and provides employment opportunities for countless individuals. They also act as a potential driver for economic growth by powering exports to attract foreign investments and significantly contributing to the nation’s GDP. As the world moves towards innovation this industry also embraces it and focuses on sustainability for a brighter future. 

Come let’s try to understand the Industry as a whole and look into some stocks in the industry. 

Textile Industry Overview

India’s textile industry is one of the most diverse and oldest sectors in the country’s economy, with a rich history spanning centuries. It encompasses a wide range of activities, from traditional hand-spun and hand-woven textiles to modern, capital-intensive mill operations.

Note: If you want to learn Candlesticks and Chart Trading from Scratch, here’s the best book available on Amazon! Get the book now!

telegram channel

The industry’s strength lies in its robust production base, which includes both natural fibres like cotton, jute, silk, and wool, as well as synthetic and man-made fibres such as polyester, viscose, nylon, and acrylic. The textile sector plays a crucial role in India’s economy, contributing 2.3% to the country’s GDP, 12% to exports and13% to industrial production.

During the period of 2018 to 2023 the Indian textile industry saw a decline of 11.69% from $16.24 billion to $14.34 billion. In order to revive, the government has planned to adjust its Production Linked Incentive (PLI) scheme to include product lines like Innerwear and t-shirts. The industry also wants to make the scheme more accessible by concentrating on the labor intensive apparel sector.

Many companies are also advocating for lower initial capital requirements and focusing on creating demand for large mills through apparel factories. It is projected to double its GDP contribution to 5% by the end of this decade. The market for Indian textiles and apparel is expected to grow at a 10% CAGR, reaching US$ 350 billion by 2030.

India ranks as the world’s third-largest exporter of textiles and clothing, with exports anticipated to hit US$ 100 billion. The industry employs around 4.5 crore workers, including 35.22 lakh handloom workers, making it a significant source of employment. The government has introduced various schemes to attract private equity and boost employment, such as the Scheme for Integrated Textile Parks (SITP), Technology Upgradation Fund Scheme (TUFS), and Mega Integrated Textile Region and Apparel (MITRA) Park scheme.

India’s position in the global textile market is strong, with the country being the world’s largest producer of cotton. The technical textile sector, including medical textiles and composites, shows promising growth potential. The government has also taken steps to promote the industry through initiatives like the National Technical Textiles Mission and allowing 100% FDI under the automatic route.

list of Textile stocks

Raymond

Raymond was incorporated in 1925, it acts as a predominant player in the textile and apparel industry by manufacturing a wide range of readymade garments and fabrics. They sell their products through their extensive retail network and also export to international markets. 

ParticularsAmtParticularsAmt
CMP3,036.80Market Cap (Cr)19,437
Stock P.E (TTM)11.62Industry P.E (TTM)27.75
ROE (TTM)35.47ROCE (TTM)24.19%
Debt-to-Equity0.91EPS (TTM)251.23

Raymond’s plans 

Raymond plans to expand its Ethnix retail brand to over 200 stores by 2025. With a mix of 25% company-owned stores and 75% being operated under franchises. The company wants to invest Rs 200 crores in garmenting capex with plans of becoming the 3rd largest suit maker in the world. For the next two years, Raymond targets to achieve 18-20% annual growth in presales for their lifestyle business. 

Grasim Industries

Grasim Industries was established on August 25, 1947 in Gwalior. The company started its journey as a textile manufacturer and produced fabrics. As days passed Grasim diversified itself into different sectors like textiles, chemicals, cement and financial services. 

ParticularsAmtParticularsAmt
CMP2,719.15Market Cap (Cr)1,75,754
Stock P.E (TTM)29.11Industry P.E (TTM)29.94
ROE (TTM)6.34%ROCE (TTM)7.44
Debt-to-Equity1.55EPS (TTM)91.68

Grasim Industries plans for the future

Grasim has mentioned that the company is moving towards from pure manufacturing to retail so that they can attract more customers and generate high revenue in the B2C segment. The company’s retail brand Linen Club is now operating with 230 Brand outlets and it is available at 9000 + multi-brand outlets.

Grasim with its Viscose Staple Fiber segment is looking for opportunities to debottleneck its capacity to achieve 4-5% growth compared to that of the previous year. 

Arvind ltd

Arvind Ltd started its journey as Arvind Mills Ltd in 1931. As a company, it started manufacturing high-end superfine cotton textiles and fabrics. Over the years the company diversified itself into various segments which include textile manufacturing, brand apparel, retail, engineering solutions and real estate.    

ParticularsAmtParticularsAmt
CMP379.45Market Cap (Cr)9,688.18
Stock P.E (TTM)28.93Industry P.E (TTM)7.14
ROE (TTM)9.50%ROCE (TTM)12.28%
Debt-to-Equity0.41EPS (TTM)12.8

Arvind Ltd future plans 

Arvind Ltd expects its garments business to grow by 25% in FY 25. To increase the garment capacity from 45 million pieces to 60 million pieces over the next year the company continues to invest in its operations. The company aims to get a 20% return on capital employed (ROCE) from its overall textile business.

Arvind Ltd has also commissioned its first agro-fuel boiler to replace fossil fuels. The company wants to increase its consumption of renewable energy to meet 90% of its power requirement compared to that of its current 47%. 

Also read…

KPR Mills 

KPR Mills  was established in 1984, the company manufactures and markets various ranges of products like cotton yarn, melange and compact yarn, ready-made knitted garments and knitted fabrics. 

ParticularsAmtParticularsAmt
CMP912.2Market Cap (Cr)30,183
Stock P.E (TTM)38.39Industry P.E (TTM)44.49
ROE (TTM)18.48ROCE (TTM)20.18
Debt-to-Equity0.27EPS (TTM)23

Plans of KPR Mill

The company is currently undergoing a brownfield expansion to increase its garment capacity from 157 million pieces to 177 million pieces on an annual basis. KPR Mill expects to maintain production of around 40 million garments per quarter in the first half of FY 25 and increase it to 45 million pieces in the second half after the brownfield expansion.

KPR Mill has also implemented various value addition initiatives like full body printing, garment printing, fabric printing and embroideries for garments. The company is currently waiting for the market conditions to improve before planning any major new expansion. They are currently focused on its existing operations. 

Ganesha Ecosphere

Ganesha Ecosphere was established on 30th October 1987. The company started its journey by producing Dyed & Doubled Yarn. Now the company manufactures Spun Yarn, Recycled Polyester Staple Fibre and Dyed Texturised Yarn. Recently FII’s in the last quarter have increased their stake from 0.89% to 9.94%. 

ParticularsAmtParticularsAmt
CMP1,403.60Market Cap (Cr)3,546.93
Stock P.E (TTM)56.77Industry P.E (TTM)37.3
ROE (TTM)5.74%ROCE (TTM)9.02%
Debt-to-Equity0EPS (TTM)24.65

Company’s plans

Ganesha Ecosphere’s recycled polyester staple fibre business is expected to scale up and to meet the demand the company is expecting to reach its optimum levels by the next one or two quarters. Since the company’s textile segment is currently facing challenges due to subdued demand and sliding prices in the textile industry they’re not planning any major capex.

The company expects some recovery in the textile sector around July – August which may improve their performance. 

Conclusion

The future of the Textile industry in India shimmers with promise. Backed by Government initiatives and embracing innovation, the industry can weave a path towards robust growth. Collaborations between textile leaders, research institutions and artisans may lead to creating a unique identity for Indian textiles in the global market.

Addressing the challenges like infrastructure bottlenecks, environmental concerns and skill gaps ensures the Indian industry to scale up and position it as a global powerhouse. What would you say about the revival of the textile industry in India will it become a Global leader as it was before? Do let us know in the comments below. 

Written by Pavunkumar V M

By utilizing the stock screenerstock heatmapportfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks, also get updated with stock market news, and make well-informed investments.


Start Your Stock Market Journey Today!

Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!