Shares of textile companies experienced high demand and surged by up to 9 percent on the BSE during Monday’s intraday trade, primarily due to expectations of improved earnings.
Welspun Living, Indo Count Industries, and Himatsingka Seide witnessed impressive gains, ranging from 4 to 7 percent at the close of trade. In comparison, the S&P BSE Sensex concluded 0.52 percent higher at 64,112.65.
The textile industry is projected to achieve moderate revenue growth in the fiscal year 2023-2024 (FY24), driven by steady domestic demand.
Despite a slowdown in various sectors, including textiles, Indian exporters are maintaining a positive outlook and anticipate a robust performance in 2023-24. Additionally, the industry exhibits optimism regarding exports in FY24.
One notable stock, Welspun Living, hit a fresh 52-week high at 158.05, surging 8 percent on the BSE. This was aided by a more than three-fold increase in average daily trading volumes on Monday.
The stock has soared by an impressive 24 percent in the last four days, following the company’s strong profit after tax (PAT) of 196.7 crores in the September quarter (Q2FY24). Comparatively, the PAT in the same quarter of the previous year (Q2FY23) amounted to 8.7 crore.
On October 12, 2021, the stock reached a record high of 170.70.
