The Indian textile industry is a crucial sector of the country’s economy, contributing significantly to exports, employment, and overall economic growth.
Recently, the Indian government has announced a capital expenditure (capex) of Rs 10,000 crore under the production-linked incentive (PLI) scheme to boost the domestic garment manufacturing and exports sector. The scheme is expected to attract investments, enhance manufacturing capabilities, and create jobs in the textile sector.
The future of the Indian textile industry appears promising, driven by rising domestic and international demand, competitive production costs, and a strong agricultural base for sourcing raw materials.
With continued government support and a focus on sustainability and innovation, the sector is poised for substantial growth in the coming years.
Listed below are such textile stocks held by Mukul Agrawal during the recent quarter:
Lux Industries Ltd:
With a market capitalization of Rs. 7,050 crores, the shares of innerwear and hosiery products manufacturer started Wednesday’s trading session on a higher note at Rs. 2,394 compared to its previous close of Rs. 2,363.15.
During the trading session, the shares hit a low of Rs. 2,311.55, losing around 2 percent, and are currently trading at Rs. 2,315 apiece.
Coming onto the company’s financial statements, the revenue zoomed by 58 percent from Rs. 445.01 crores during the December quarter to Rs. 704.21 crores in the March quarter. In addition, the net profits magnified by 182 percent from Rs. 19.49 crores to Rs. 55.09 crores during the same period.
According to the BSE data, Ace Investor Mr Mukul Agrawal entered the stock in March 2024, by acquiring 4 lakh equity shares equivalent to a 1.33 percent stake in this company. The current holding value of his investment amounts to Rs. 95.8 crores. Moreover, LIC also holds a 4.74 percent stake in the company.
The company has a total of seven manufacturing facilities that possess a cumulative capacity of 34 crores of garment pieces a year. The company’s manufacturing units are located in India in Punjab, Uttar Pradesh, Tamil Nadu and West Bengal. And the company has a 15 percent existing market share in men’s innerwear.
In terms of key financial metrics, the company reported a return on equity of 8.26 percent and a return on capital employed of 12.13 percent for the period spanning FY23-24. Additionally, the net profit margin stood at 5.40 percent during the same timeframe.
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Indo Count Industries Ltd
With a market capitalization of Rs. 7,646 crores, the shares of the company specialized in home textiles and bedding products started Wednesday’s trading session on a higher note at Rs. 390.50 compared to its previous close of Rs. 383.70.
During the trading session, the shares hit a high of Rs. 395.95, gaining around 2 percent and are currently trading at Rs. 386 apiece.
Looking at the company’s financial performance, the revenue decreased by around 14 percent from Rs. 1,093 crores during the March quarter to Rs. 941 crores in the June quarter. On the other hand, the net profits declined by 15 percent from Rs. 92 crores to Rs. 78 crores during the same period.
According to the BSE data, Ace Investor Mr Mukul Agrawal entered the stock in March 2020 and currently holds around 23.25 lakh equity shares equivalent to a 1.17 percent stake in this company. The current holding value of his investment amounts to Rs. 91.4 crores.
Furthermore, the company is prioritizing the U.S. market due to its larger order sizes and the potential for operational leverage. Additionally, it plans to increase the non-U.S. market’s share to 40 percent, while maintaining the U.S. market’s share at 60 percent.
In terms of key financial metrics, the company reported a return on equity of 16.17 percent and a return on capital employed of 21.77 percent for the period spanning FY23-24. Additionally, the net profit margin stood at 9.50 percent during the same timeframe.
Written By Vaibhav Patil
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