Bangladesh, the world’s second-largest exporter of garments, exported ~$47 billion worth of ready-made garments in 2023. The country holds a substantial market share in the European Union (EU) and the United Kingdom (UK), with a 10 percent market share in the United States (US).
However, as the crisis in Bangladesh deepens, its key textile sector—which contributes a lion’s share of its exports—faces increasing challenges. This turmoil may prompt international buyers to seek alternative markets, such as India, to meet their needs.
If 10-11 percent of Bangladesh’s garment exports shift to Indian hubs such as Tiruppur, India stands to gain an additional business of $300-400 million per month, according to several sources.
The future of India’s textiles and apparel industry looks promising, supported by government investments, increasing domestic demand driven by rising disposable incomes, and the growing appeal of ‘fast fashion’ products. Analysts believe these factors will provide a boost to the industry, even amid a slowdown in demand in key markets.
Here are some textile stocks that reported strong results for the June quarter of FY24-25:
In Tuesday’s trading session, the shares of a leading yarn manufacturer and exporter in India surged by 11.05 percent to hit a new 52-week high at Rs. 123.05, as against its previous closing price of Rs. 110.8, with a market cap of Rs. 1,104 crores.
The revenue from operations for Q1 FY24-25 stood at Rs. 288 crores, marking a 9.5 percent YoY rise from Rs. 263 crores in Q1 FY23-24, as well as a 0.7 percent growth quarter-on-quarter from Rs. 286 crores in Q4 FY23-24.
GHCL Textiles’ net profit jumped by 181 percent YoY to Rs. 11.8 crores in Q1 FY24-25, as against Rs. 4.2 crores in Q1 FY23-24, and on a quarter-on-quarter basis, it grew by 15.7 percent from Rs. 10.2 crores in Q4 FY23-24.
The company strategically increased the revenue mix of value-added products such as knitted and greige fabric, and exports, to effectively mitigate market fluctuations and enable a stable margin visibility.
Further, the company’s expansion includes adding 25,000 spindles with a capex outlay of Rs. 215 crores and is expected to generate revenue of Rs. 250 crores. This ongoing expansion is expected to be completed by Q2 FY25-26, along with further investments to set up knitting, weaving, and dyed fabric production capacities.
The shares of GHCL Textiles have delivered positive returns of nearly 50.3 percent in one year as well as around 63 percent returns year-to-date.
GHCL Textiles Limited is engaged in the business of manufacturing and trading of yarn and fabric.
In Tuesday’s trading session, the stock surged by 20 percent to hit a new 52-week high at Rs. 704.85, as against its previous closing price of Rs. 587.4, with a market cap of Rs. 1,457.8 crore.
The revenue from operations for Q1 FY24-25 stood at Rs. 528 crores, marking a 23.4 percent YoY rise from Rs. 428 crores in Q1 FY23-24, as well as a 12.6 percent growth quarter-on-quarter from Rs. 469 crores in Q4 FY23-24.
Century Enka’s net profit jumped by 71.4 percent YoY to Rs. 24 crores in Q1 FY24-25, as against Rs. 14 crores in Q1 FY23-24, and on a quarter-on-quarter basis, it grew by 20 percent from Rs. 20 crores in Q4 FY23-24.
The shares of Century Enka have delivered positive returns of nearly 47.8 percent in one year as well as around 50.3 percent returns year-to-date.
Century Enka Limited is engaged in the business of manufacturing and selling of synthetic yarn and related products.
In Tuesday’s trading session, the shares of one of India’s leading textile conglomerates surged by 9.2 percent to Rs. 1,382.85, as against its previous closing price of Rs. 1,266.05, with a market cap of Rs. 1,680.5 crore.
The revenue from operations for Q1 FY24-25 stood at Rs. 634 crores, marking a 17.7 percent YoY rise from Rs. 539 crores in Q1 FY23-24, as well as a 3.7 percent growth quarter-on-quarter from Rs. 611.2 crores in Q4 FY23-24.
Sportking India’s net profit jumped by 75 percent YoY to Rs. 31.8 crores in Q1 FY24-25, as against Rs. 18.2 crores in Q1 FY23-24, and on a quarter-on-quarter basis, it grew by 39.2 percent from Rs. 23 crores in Q4 FY23-24.
As of Q1 FY24-25, the company’s average exports were worth more than US$ 125-175 million.
The shares of Sportking India have delivered positive returns of nearly 67 percent in one year as well as around 57 percent returns year-to-date.
Established in 1989, Sportking India Limited y is engaged in the manufacturing of cotton yarn, synthetic yarn and blended yarn. It produces a wide range of grey and dyed textile yarns to serve the demands of the weaving and knitting industry in India as well as overseas.
Written by Shivani Singh
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