The stock prices of leading companies in the textile and footwear segments rose following the announcement of a proposed GST rate reduction by the Group of Ministers, as investors anticipated positive benefits from the cut.
What’s the News?
As per the sources, the Group of Ministers (GoM) is expected to propose reducing the GST on certain textile products, including glimped yarn, metallised yarn, and rubber thread, from 12 percent to 5 percent.
The panel may also recommend increasing the price threshold for readymade garments eligible for 5 percent GST from Rs 1,000 to Rs 2,500, while garments priced above Rs 2,500 could attract 18 percent GST instead of the current 12 percent.
For footwear, GST on items priced above Rs 2,500 is likely to be raised from 12 percent to 18 percent. These proposed changes aim to rationalise tax rates across textiles and footwear, potentially affecting pricing and demand in these sectors.
Below are the Stocks that are in focus following the News
1. Trent Ltd
Trent Limited is an Indian retail company that operates several formats, including Westside, Zudio, Utsa, Star Hypermarket, Landmark, Misbu/Xcite, Booker Wholesale, and ZARA. It provides apparel, footwear, accessories, toys, home furnishings, decor, and lifestyle items.
Westside specializes in fashion and home products, Landmark in toys and books, Zudio in affordable apparel, and Utsa in ethnic and beauty products. Its hypermarkets and supermarkets under the Star Market concept offer a diverse range of products, such as staples, beverages, and health and beauty items.
With the market capitalisation of Rs. 1,88,426.13, the shares of Trent Ltd is trading at Rs. 5,299 up by 1.21 percent from its previous closing of Rs. 5,235.50. The stock has reached an intraday high of Rs. 5,411, gaining 3.35 percent from previous close price.
In Q1FY26, the company reported revenue of Rs. 4,883 cr, up 19 percent YoY from Rs. 4,104 cr in Q1FY25 and 16 percent QoQ from Rs. 4,217 cr in Q4FY25. Profit for the quarter stood at Rs. 425 cr, marking a 9 percent YoY increase from Rs. 391 cr and a 36 percent QoQ jump from Rs. 312 cr in Q4FY25, reflecting strong sequential and yearly growth momentum.
2. Siyaram Silk Mills Ltd
Siyaram Silk Mills Ltd is a textile manufacturing company specializing in fabrics and ready-to-wear garments, with a particular focus on men’s apparel. The company also exports its products to countries including the UAE, Australia, Bahrain, Bangladesh, Cambodia, and Canada.
With the market capitalisation of Rs. 2,791.85, the shares of Siyaram Silk Mills Ltd is trading at Rs. 613.70, up by 0.87 percent from its previous closing of Rs. 608.40. The stock has reached an intraday high of Rs. 630, gaining 3.62 percent from previous close price.
In Q1FY26, the company reported revenue of Rs. 389.48 cr, up 26.9 percent YoY from Rs. 306.82 cr in Q1FY25, but down 47.1 percent QoQ from Rs. 736.19 cr in Q4FY25. Profit declined sharply to Rs. 4.64 cr, down 59.6 percent YoY from Rs. 11.50 cr and 93.6 percent QoQ from Rs. 72.05 cr, reflecting weaker margins and seasonally lower performance compared with the previous quarter.
3. Bata India Ltd
Bata India, a division of the Bata Shoe Organisation, is India’s largest footwear manufacturer and retailer. It was founded in 1931 and has its headquarters in Batanagar. It went public in 1973. The company operates a retail network of over 1,375 stores in metros, mini-metros, and towns, offering a diverse range of quality products. Aside from retail, Bata India serves millions of customers through its urban wholesale division and over 30,000 dealers, ensuring a broad market reach.
With the market capitalisation of Rs. 14,228, the shares of Bata India Ltd is trading at Rs. 1,107, up by 2.56 percent from its previous closing of Rs. 1,079.40. The stock has reached an intraday high of Rs. 1,119.90, gaining 3.75 percent from previous close price.
In Q1FY26, the company reported revenue of Rs. 942 cr, down 0.32 percent YoY from Rs. 945 cr in Q1FY25, but up 19.54 percent QoQ from Rs. 788 cr in Q4FY25. Profit declined sharply to Rs. 52 cr, down 70.11 percent YoY from Rs. 174 cr but up by 13.04 percent QoQ from Rs. 46 cr, reflecting weaker margins and seasonally lower performance compared with the previous quarter.
4. Relaxo Footwears Ltd
Relaxo Footwears Limited is India’s largest non-leather footwear manufacturer, specializing in slippers, sandals, canvas shoes, sports shoes, and school shoes, and leading the value segment. Its portfolio includes brands like Relaxo, Sparx, Flite, and Bahamas, with products sold through distributors, retail outlets, exports, and e-commerce channels.
With the market capitalisation of Rs. 11,924.16, the shares of Relaxo Footwears Ltd is trading at Rs. 479, up by 6.99 percent from its previous closing of Rs. 447.70. The stock has reached an intraday high of Rs. 489.50, gaining 9.34 percent from previous close price.
In Q1FY26, the company reported a revenue of Rs. 654 cr, down 12.6 percent YoY from Rs. 748 cr in Q1FY25 and 5.9 percent QoQ from Rs. 695 cr in Q4FY25, while profit rose to Rs. 49 cr, up 11.4 percent YoY from Rs. 44 cr and down 12.5 percent QoQ from Rs. 56 cr, reflecting lower top-line performance but improved operational efficiency compared to last year.
Written By Akshay Sanghavai
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
