A detailed examination of Gujarat’s leading textile and chemical companies’ stock prices as the fiscal year 2022–23 drew to an end on Friday revealed a significant decline.
The chemical industries also saw decreased demand in addition to profit-booking, while the textile business had a relatively uninteresting year with rising input costs and lower demand.
Arvind Ltd, a prominent domestic textile manufacturer, saw a 28.9% decline in share price from Rs 119 on April 1, 2022, to Rs 84.65 on March 31, 2023. Similar to Vishal Fabrics, the share prices of major denim manufacturers Nandan Denim and Nandan Denim fell by 76.2% and 54.4%, respectively.
“Cotton prices hit historic highs of Rs. 1.10 lakh per candy in May last year” (356kg). At the same time, the global demand fell significantly. key markets in the US and Europe experienced an economic downturn after the conflict between Russia and Ukraine erupted. This has a big influence on textile industry majors’ income, “said a stock dealer located in Ahmedabad.
However, key chemical industry businesses including Meghmani Organics, Atul Limited, and Deepak Nitrite as well as PSUs GSFC and GNFC all reported a fall in their stock prices ranging from 20% to 41%. “Soon after Covid-19, chemical supplies increased nationwide amid rumour that China +1 and Indian producers may serve as viable alternatives to their Chinese counterparts.
But, throughout the past year, investors significantly booked their profits, which caused big equities to fall “a stock analyst stated. “In the meantime, a rapid increase in costs plagued the chemicals business. The majority of enterprises had a dismal third quarter result due to an increase in raw material prices, he added.
