One of the most bustling industries in the nation, textile and apparel, is experiencing a renaissance. The value of textiles equities on the bourses has increased resulting into a surge. The fortunes of top performers including Trident, Alok Ind, KPR Mills, Lakshmi Machine Works (a significant manufacturer of textile machinery), Welspun, Raymond, and Vardhaman Textiles Ltd. have improved.
With a Buy rating in May 2023, Sharekhan kept KPR Mills’ target price at 685; in June, it was increased to 800. For Gokaldas Exports, Siyaram Silk Mills, Vardhaman Textiles, and Nitin Spinners, ICICI Direct had made a Buy recommendation.
Despite challenges like the COVID pandemic, global economic trends, the war in Russia and Ukraine, fluctuating raw material prices, inflation, etc., the business is predicted to expand significantly. thanks to escalating demand from developing nations, robust domestic textile demand (which grew throughout the pandemic), and pandemic-related medical textile demand.
The government’s initiatives, which have included encouraging the production of technical textiles, the PLI programme, the establishment of mega textile parks under the PM-Mega Integrated Textile Region and Apparel (PM MITRA) programme, the Silk Samagra programme to advance the sericulture and silk industries, the SAMARTH Yojana for skill development, the signing of Free Trade Agreements with numerous nations, etc., have all been beneficial.
“Textile as a space hasn’t yet taken off the way many of the other industries and topics have in recent months. It did, however, have its fair share of outperformers, albeit a few that saw a significant and sustained upward trend. Based on the vast majority of equities creating a base pattern on the weekly charts, the sector’s outlook has changed for the better.
“However, the rise is anticipated to begin in a small number of equities before spreading to the rest, which will make stock selection crucial. While periods of outperformance are anticipated moving forward for stocks like KPR Mill and Gokaldas Export, others, including Zodiac Clothing, Ambika Cotton, and Himatsingka Seide, are anticipated to experience a new uptrend after forming a rounding bottom pattern on the weekly charts, according to Gaurav Bissa, Vice-President, InCred Equities.
