List of Best Textile Stocks to invest in India 2024

Best Textile Sector Stocks to Invest in India

24 Oct 2024
7 mins read
By: BlinkX Research Team

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India's textile industry is one of the world's largest, leading in cotton, jute, and silk production, and it ranks second globally in silk production. 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 dates back centuries and 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 based on their PE ratio.

List of Textile Companies in India

Here’s a table of the top 10 textile companies listed in NSE in the stock market.

Stock Name	CAGR of 5 Years (27th Aug 2024)	PE Ratio
Orbit Exports Ltd	12%	16.1
Vardhman Textiles Ltd	23%	20.1
MK Exim (India) Ltd	109%	23.4
Raymond Ltd	42%	24.6
Voith Paper Fabrics India Ltd	28%	31.5
Arvind Ltd	53%	34.0
K P R Mill Ltd.	51%	37.3
Soma Textiles & Industries Ltd	59%	49.3
Trident Ltd	46%	58.2
Bhilwara Spinners Ltd	63%	95.1

Disclaimer: The information provided on the above stocks is for informational purposes only. It is crucial to conduct thorough research before making any investment decisions regarding these stocks. We do not recommend trading any stocks without comprehensive research and professional financial advice. Always consult with a certified financial advisor to ensure informed and appropriate investment choices.

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List of Textile Companies in India
Overview of 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?

Overview of Top Textile Stocks in India

Here is the overview of top textile stocks:

1. Orbit Exports Ltd

Orbit Exports Ltd, founded in 1983, is a well-established player in the textile industry, focusing on the manufacture and export of fancy textiles.
The company's products are widely used for festive occasions, fashion, and furnishings, and they are known for their vibrant designs and high quality.
Orbit Exports has a significant presence in both domestic and international markets, catering to customers in the United States, Europe, and Asia.
The company has shown steady revenue growth due to its strong export base.

Get more details about Orbit Exports Ltd share price here.

Know the Orbit Exports Ltd Share Price History here.

2. Vardhman Textiles Ltd

Vardhman Textiles Ltd was established in 1965 and has since grown to become one of India's largest textile manufacturers.
The company is known for its integrated operations, which include the production of yarn, fabric, garments, and sewing threads.
Vardhman Textiles has a robust presence in both domestic and export markets, serving clients in over 70 countries worldwide.
The company produces a wide range of textile products, including cotton yarn, blended yarn, greige fabric, and processed fabric.

Get more details about Vardhman Textiles Ltd share price here.

Know the Vardhman Textiles Ltd Share Price History here.

3. MK Exim (India) Ltd

MK Exim (India) Ltd, founded in 1992, engages in the manufacturing and export of readymade garments, leather goods, and handicrafts.
The company is known for its commitment to high-quality fashion products and has a significant presence in international markets, including Europe and the Middle East.
The company has shown moderate financial performance, with a focus on expanding its market share in fashion and leather goods.

Get more details about MK Exim (India) Ltd share price here.

Know the MK Exim (India) Ltd Share Price History here.

4. Raymond Ltd

Raymond Ltd was established in 1925 and is a well-known name in the textile and apparel industry.
The company is famous for its high-quality woollen and worsted fabrics, and it also has a significant presence in the branded clothing segment.
With a strong retail network across India, Raymond has maintained its reputation for premium fabric and apparel products.

Get more details about Raymond Ltd share price here.

Know the Raymond Ltd Share Price History here.

5. Voith Paper Fabrics India Ltd

Voith Paper Fabrics India Ltd, established in 1968, specialises in the production of paper machine clothing, which is used in the paper manufacturing process.
As a part of the globally renowned Voith Group, the company is a leader in providing high-quality technical textiles to the paper industry in India and has a growing presence in the export market.
The company operates manufacturing facilities focused on producing high-quality paper machine clothing.

Get more details about Voith Paper Fabrics India Ltd share price here.

Know the Voith Paper Fabrics India Ltd Share Price History here.

6. Arvind Ltd

Founded in 1931, Arvind Ltd is a major player in the textile industry, known for its extensive denim production and diversified offerings in fabrics and garments.
The company also has a significant presence in branded apparel retailing, making it a well-recognised name both domestically and internationally.
Arvind Ltd has a strong financial track record, benefiting from its diversified operations and focus on high-growth segments such as branded retail and technical textiles.

Get more details about Arvind Ltd share price here.

Know the Arvind Ltd Share Price History here.

7. K P R Mill Ltd

K P R Mill Ltd was established in 1984 and is known for its vertically integrated operations in the textile industry.
The company is involved in spinning, knitting, processing, and garment manufacturing, focusing on high-quality cotton fabrics and garments.
K P R Mill has a strong export base, serving customers in Europe, the United States, and other regions.

Get more details about K P R Mill Ltd share price here.

Know the K P R Mill Ltd Share Price History here.

8. Soma Textiles & Industries Ltd

Established in 1940, Soma Textiles & Industries Ltd is engaged in manufacturing various textile products, including denim and speciality fabrics.
The company is known for its commitment to quality and modern manufacturing techniques.
Soma Textiles primarily serves the domestic market and is increasingly focusing on export opportunities.

Get more details about Soma Textiles & Industries Ltd share price here.

Know the Soma Textiles & Industries Ltd Share Price History here.

9. Trident Ltd

Trident Ltd, founded in 1990, is one of India's largest manufacturers of terry towels, yarn, and paper.
The company is recognised for its integrated operations and wide range of high-quality textile products.
Trident has a strong presence in both domestic and international markets, exporting to over 100 countries worldwide.

Get more details about Trident Ltd share price here.

Know the Trident Ltd Share Price History here.

10. Bhilwara Spinners Ltd

Bhilwara Spinners Ltd was established in 1980 and focuses on the manufacturing and sale of synthetic and blended yarns.
The company is known for producing high-quality yarns for various textile applications and primarily caters to the domestic market, with some export activities.
Bhilwara Spinners has a modest financial profile, focusing on consistent production quality and customer satisfaction.

Get more details about Bhilwara Spinners Ltd share price here.

Know the Bhilwara Spinners Ltd Share Price History here.

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.

Financial Success and Medical Care:

Analyse textile companies' financial achievements by investigating important financial metrics like return on equity, profit margins, and sales growth.

The Marketplace Share and Industry Placement:

Find out where the firm stands in the textile sector. Economies of scale are likely to favour businesses with significant market shares and an edge over competitors.

Management Quality and Corporate Governance:

Analyse the performance history and strategic choices made by the management unit. A business with a history of good management practices and a transparent governance structure is more capable of tackling obstacles and generating long-term shareholder value.

Chain of Custody Connectivity and Diversification:

Consider businesses with various products and a seamless chain of custody. A company engaged in vertical integration can benefit from lower costs and improved quality control at several points in the textile production process.

Patterns in Domestic Textiles and Demand Worldwide:

Keep updated on domestic and worldwide textile demand developments. Long-term success is more likely for businesses that explore foreign markets, adjust to shifting consumer tastes, and invest in technology to improve product quality and innovation.

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.

Market Dynamics and Patterns:

Investigate the textile sector's general marketplace conditions and patterns. Study local and international economic scenarios, textile demand, and new consumer preference patterns.

Company's Financial Health:

Evaluate the textile company's economic health by studying its financial accounts. Consider measures like return on equity, profit margins, debt levels, and sales growth. A financially stable firm is more likely to succeed over a lengthy period.

Leaders Efficiency:

Consider the management group's experience, track record, and strategic vision. Businesses with a track record of sensible decision-making and strong leadership are better positioned to handle obstacles.

Positioning in the Industry and Competition:

Evaluate the company's place within the textile sector and its competition level. Consider its market share, advantages over competitors, and capacity to change. Businesses with the upper hand in the market have the potential for further development.

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.
The Rates for Raw Supplies:

Cotton, silk, and synthetic fibres are examples of costly raw materials. These factors can have a direct effect on the profitability of companies who manufacture textiles, which in effect, can have an impact on the prices of textile shares and stocks.

Foreign Exchange Rates:

The costs of importing raw materials may vary according to the value of the Indian rupee compared to other currencies. As a result, the money received from exporting finished items impacts the share prices and profitability of textile companies.

Policies within the Government:

Trade, tax, and regulation policies might affect a company's profitability and share prices in the textile industry. For example, variations to import/export policies may affect the price and availability of raw materials, whereas adjustments to tax laws may affect manufacturing costs and profitability.

Overseas Industry Terms:

The total amount of money that textile manufacturing companies make may be impacted by the possible demand for their products in foreign markets. The selling prices of textile companies decline as a result.

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:

Textile Stocks Identified in Cotton:

Industries that manufacture textiles from cotton are linked to the top textile stocks to purchase in India. Cotton is one of the principal raw materials used by textile industry businesses. Several variables, including cotton prices and availability, may have affected these stocks.

Textile Stocks using Synthetic and Blended Fibres:

Companies that manufacture textiles using synthetic fibres or a combination of synthetic and natural fibres. These textile stocks can be impacted by variables such as customer demand, technical improvements, and raw material prices.

Apparel Shares:

These textile sector shares are associated with companies that produce completed clothes, such as dresses, shirts, and pants. Numerous factors, including manufacturing, fashion trends, and consumer demand, might impact these textile shares.

Technology Textiles Shares:

These are linked to textile manufacturing companies. They are useful in industrial settings for textile products such as automotive, geotextile, and medical applications.

Homes Textiles Stocks:

These top textile stocks include companies that manufacture textiles. These businesses make the fabrics used in curtains, towels, and other home furnishings.

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.

Shifts in Demand:

Shifts in demand may affect the revenues and profitability of the Indian textile sector, which in response can affect the price of textile shares. Thus, having access to investment ideas and portfolios that are expertly chosen and focused on companies that can weather market swings can be beneficial.

Competitors from Other Nations Participants:

The Indian textile industry faces competition from a range of countries, including Bangladesh, China, and Vietnam, which provide the same goods at less money. These nations can affect the potential for exporting goods, the financial success, and the share prices of Indian textile enterprises. To avoid international competition, you might thereby directly invest in businesses that have a well-known brand, loyal consumers, and differentiated product offers.

Dependency Upon Policies and Regulations:

The government's trade, tax, and regulatory policies have had a major effect on the textile sector. A textile company's earnings may depend on changes in the price of its shares, the cost of manufacturing, the availability of raw materials, and its export potential.

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.

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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.