Best Textile Sector Stocks to Invest in India
- 10 May 2024
22 mins read
- By: BlinkX Research Team
India's textile industry, one of the world's largest, is a major player in cotton, jute, and silk production, with India ranking second in silk production worldwide. The sector contributes significantly to India's economy, accounting for 2.3% of GDP, 13% of the industrial output, and 12% of total export earnings. The industry, dating back centuries, showcases a diverse range of products, from traditional hand-spun textiles to modern, capital-intensive mills. India's textile industry primarily comprises decentralised power looms, hosiery, and knitting, closely linked to agriculture for sourcing raw materials like cotton. India's rich cultural heritage and traditions in textiles make the industry unique. India's textile exports are projected to reach $190 billion by 2025-26. This blog will explore some of the best textile sector stocks listed in NSE.
Top 10 Textile Companies in India
Read on to find out more about the top 10 textile companies listed in NSE in the stock market.
Company Name | Market Cap (in Cr) | Share Price | Close Price |
Vedant Fashions Ltd | ₹230.24 billion | ₹950.00 | ₹1,368.15 |
Orbit Exports Ltd | ₹4.39 billion | ₹166.15 | ₹183.45 |
Voith Paper Fabrics India Ltd | ₹8.66 billion | ₹1,971.05 | ₹1,830.50 |
MK Exim (India) Ltd | ₹3.42 billion | ₹84.25 | ₹115.70 |
Bhilwara Spinners Ltd | ₹1.13 billion | ₹125.00 | ₹75.75 |
Soma Textiles & Industries Ltd | ₹1.27 billion | ₹38.30 | ₹19.75 |
Paras Petrofils Ltd | ₹1.30 billion | ₹3.90 | ₹2.40 |
Kandagiri Spinning Mills Ltd | ₹84.68 million | ₹21.94 | ₹21.10 |
Padam Cotton Yarns Ltd | ₹35.40 | ₹35.40 | ₹56.00 |
Delta Industrial Resources Ltd | ₹41.63 | ₹41.63 | ₹17.36 |
Disclaimer: The market capitalisation mentioned above is accurate as of the date, 23rd April 2024. However, you must do your homework before buying any of these stocks.
Table of Content
- Top 10 Textile Companies in India
- Top Textile Stocks in India
- The Indian Textile Industry
- How to Identify the Best Textile Stocks to Buy in India?
- Factors to Consider Before Investing in Textile Stocks in India
- How to Invest in Textile Stocks in India?
- Factors Affecting Textile Sector Stocks
- Types of Textile Sector Stocks
- Why Should You Invest in Textile Sector Stocks?
- Are There Any Challenges in the Textile Sector Stocks in India?
Top Textile Stocks in India
Here are some of the top textile stocks overviews:
The Indian Textile Industry
India had one of the biggest textile industries in the world during the British colonial era, shipping textiles to several countries. Yet the sector faced several difficulties following independence, such as the need for modernisation and competition from synthetic fabrics.
The textile sector currently produces around 17% of export revenue and 14% of the nation's industrial output. Investors can look over a textile sector share list for the textile industry to find possible companies to invest in.
There are several different segments within the Indian textile penny stocks list, including cotton, silk, jute, wool, and synthetic fibres. The sector, which generates around 70% of all textiles, is largely dominated by the cotton textile industry. The textile industry for silk and synthetic substances are other important sectors.
The Indian government is implementing several projects to further develop the textile sector in India. One of these programs, the Amended Technology Upgradation Fund Scheme (ATUFS), provides financial support to textile firms to update their machines and equipment. The Integrated Textile Park (ITP) program aims to create textile parks that offer infrastructure and support services to businesses in the textile sector.
How to Identify the Best Textile Stocks to Buy in India?
It takes thorough analysis and research to identify which Indian textile stocks are the highest investments. Here are five important aspects to consider before buying.
Factors to Consider Before Investing in Textile Stocks in India
To make sound decisions, it's important to consider a variety of demands before investing in Indian textile stocks.
How to Invest in Textile Stocks in India?
Investing in Textile stocks in India is a fairly simple process. Below are the steps you should follow:
- Using your demat account choose the Indian textile equities through individual firms listed on stock exchanges such as the NSE and BSE.
- You can also choose textile-focused mutual funds or ETFs that provide more diverse possibilities.
- Remember, indirect exposure can be obtained by investing in adjacent firms throughout the textile supply chain, such as cotton producers or machinery manufacturers.
- Remember to research and assess your investing objectives and risk tolerance before executing your purchase order.
Factors Affecting Textile Sector Stocks
Considering the major effect on the economy of the entire country, diversifying investment in Indian textile industries could represent an appropriate option for a lot of individuals. Thus, before moving on, let's go over a few of the factors that are affecting textile stocks.
Types of Textile Sector Stocks
Stocks held by companies involved in the textile sector are often called textile stocks. The organisation's production of textile-related goods might be utilised to organise these stocks. Following is a list of the textile stock categories:
Why Should You Invest in Textile Sector Stocks?
India has the greatest textile sector in the world when it comes to spindles installed for spinning yarn. Therefore, you must have a Demat account to invest in Indian textile sector firms and get a significant return on investment. Let's explore them.
- Advancement Possibilities: Several reasons contribute to India's significant development potential for textile brands. Such as changing consumer preferences, increased disposable income, and population growth.
- Transfer Opportunities: Indian textile companies can grow and are already well-established in foreign markets. Investing in textile equities may expose investors to this export potential.
- Portfolio diversification: This could possibly be accomplished via investing in textile sector businesses because these stocks do not have a strong correlation with other industries.
- Capability for adapting to financial Patterns: Companies in the textile sector have the potential to deal with economic fluctuations with an adequate amount of flexibility. Even in times of economic downturn, there is typically an ongoing market for textile items.
- Popularity and Status: Many Indian textile enterprises are recognised names with a solid record of producing high-quality goods. This provides a competitive edge and may encourage an increase in stock price.
However, investors should conduct an independent study before deciding to invest and/or speak with a financial professional.
Are There Any Challenges in the Textile Sector Stocks in India?
Since any investment opportunity involves risk, it is essential to consider all factors. As a result, we've outlined the primary obstacles to investing in the textile industry below.
Conclusion
Given the rising consumption and distinct moats of textile manufacturing businesses, textile sector stocks might provide an excellent chance to invest in the finest textile stocks in India. Thus, investing in textile stocks may be a progressive and successful way to diversify your portfolio. This might also benefit India's developing textile sector. Choose a reliable stock market app for better understanding.
However, before making any decisions, you should conduct careful research and contact a financial expert.
FAQs on Textile Industry Sector Stocks
A recovery in post-pandemic spending by consumers, more efficiency, beneficial government policies, and increased domestic and foreign demand might potentially contribute to an increase in textile holdings.
The textile industry faces intense competition from low-cost nations, affecting profit margins, and grappling with customer preferences, environmental regulations, and fluctuating raw material prices.
The textile sector is poised for growth with the integration of advanced technologies and a growing emphasis on sustainable practices, enhancing efficiency and productivity.
The textile market is a vital global economy, providing employment, contributing to GDP, and serving as a gauge of economic health by reflecting consumer spending and industrial activity.
Textile stocks are cyclical due to their fluctuating performance with economic cycles, indicating a continuous need for investors to monitor market trends and anticipate demand shifts.