Top 10 Textile Stocks in India 2023

This guide will take into the world of top 10 textile stocks in India. When it comes to textile manufacturing, India is one of the most important countries in the world.

The textile industry employs millions of people and is one of the most important sectors of the Indian economy. Companies in this field are often good investments, and we have chosen the ten best for you to examine.

Let's dive into the discussion below and discuss India's top 10 textile stocks in 2023.

Overview of the textile industry in India 

India's textile industry produces and sells cotton, silk, wool, and synthetic fibers. As part of India's textile industry, these fabrics are also exported. 

This industry is vital to India's economy because it accounts for more than 14% of total manufacturing production and 4% of the country's GDP.

The Indian textile sector is estimated to be valued at $108 billion, with a target of $223 billion by 2021, rising at a rate of 12-14% per year. Furthermore, it accounts for around 13% of the country's total exports.

If you are relaxed with the risks of growth investing, then textile stocks could be a good addition to a well-rounded portfolio.

Why invest in the best textile stocks in India?

Because of the pandemic, shares in the textile industry fell briefly. This was due to a lack of workers and consumers when the lockdown was in effect. 

Despite this, India's textile stocks have risen significantly since then. Furthermore, the government has made possible 100% foreign direct investment through automated means.

The Indian textile market is estimated to be worth $55 billion by the year2020, with a compound annual growth rate (CAGR) of 10% or more in the years ahead. The demand for textiles is predicted to rise steadily as the population and economy expand.

In addition, the government has given the sector a substantial push in recent years. 

The sector is now open to receiving 100% FDI through the automatic route after the government removed restrictions on the practice. Between April 2000 and March 2021, the sector attracted investment of 3.75 billion US dollars.

As of 2020, the Indian clothing industry was valued at $55 billion. And it is anticipated to develop at a CAGR of 10%. This will make it reach a value of $135 billion by the year 2025.

List of top 10 textile stocks in India

When considering the finest textile stocks in India, consider the following:

Arvind Ltd

It is the market leader in the textile industry, with a diverse product line that includes branded clothing, denim, and high-quality materials.

This stock company has shown a record of consistent growth in recent years and is expected to continue to be successful.

Arvind Ltd. is an Indian textile and clothing manufacturing firm. The company has been operating since 1931 and is currently in charge of various clothing brands. Arvind's sales have increased by 52.37 percent over the last four quarters.

However, this shift has been haphazard, with sales increasing by only 3.76 percent over the last three years. The company's net profit has declined by 5.38 percent in the last three years, which could be better. 

Arvind's return on equity is 11.50%, a strong figure, and the company's debt-to-equity ratio is 0.80%, also a good figure.

KPR Mill Limited

This textile company can spin, knit, process, and manufacture clothing. As a result, it is a vertically integrated company. The stock's performance over the last five years has been excellent, and the company is still seeking to expand.

KPR Mill Limited is a textile firm in operation for over 110 years. It is family-owned and operated. 

They are well-known for producing high-quality fabrics that last a long period. Cotton yarn, bed linens, and towels are among their most popular products.

KPR Mill Limited has been able to maintain a steady rate of growth in recent years. Their Return on Equity increased from 19.92% in 2014 to 27.40% in 2017, representing a significant improvement. Furthermore, their net profit increased from Rs. 158 crores in 2014 to Rs. 245 crore in 2017.

The company's expanding sales base is a major contributor to this expansion. Revenue increased from Rs. 1,584 crores in 2014 to Rs. 2,070 crores in 2017. 

KPR Mill Limited's remarkable performance over the last four quarters shows its 40.95% increase in sales and total profitability.

Bombay dyeing & manufacturing company limited

Bombay Dyeing is one of India's oldest and largest textile and home furnishings manufacturers. It has a vast list of clients, including major retailers such as Walmart and Target. 

The company's stock has done extremely well in recent years and does not appear to be slowing down soon.

Bombay Dyeing and Manufacturing Company Limited has been in business for a long time and is a solid and dependable organization. Even in difficult circumstances, the company has demonstrated its resilience and continues to thrive. 

As seen by its most recent revenue growth of 60.92 percent, the company is robust and steady. Furthermore, the company's return on equity remains high compared to most other enterprises, at 53.90%.

This demonstrates that Bombay Dyeing & Manufacturing Company Limited is an excellent investment opportunity for anyone looking to put their money into a reputable company. 

However, revenue growth has been quite modest in the last three years, averaging only 23.27%.

Some investors may be concerned about this, but it's crucial to remember that even the most successful businesses have periods of success and periods of failure. 

If you want to make a stock market investment, consider Bombay Dyeing & Manufacturing Company Limited. 

It is a fantastic firm with a promising future that you should investigate. 

Raymond Limited 

Raymond Limited is a well-known participant in the textile and branded clothing industry, with a significant domestic and international presence. Its stock price has consistently increased over the last five years, and its business operations have expanded.

The corporation has done extremely well financially in recent years. The returns on Raymond Limited's shares have been much higher than the Nifty 50 index during the last year. This is due to various factors, including the organization's emphasis on value creation.

The company has a high Piotroski F Score of 8.0, indicating that it is a high-quality company with solid foundations. In addition, the company has a very strong Value Composite Score of 8.0. 

Raymond Limited is also undervalued, with a price-to-intrinsic value ratio of just 0.809. This indicates that anyone who buys the company's stock could make a lot of money if they invest in it.

In addition, Raymond Limited has made significant progress in debt repayment in recent years. As a result, the company's finances have improved, and the variety of ways it may make money has increased.

Lastly, Raymond Limited's exceptional return on equity (ROE) of 23.03% is one of its most important assets. This signifies that the corporation is profitable and makes a lot of money from its investments. 

Overall, Raymond Limited appears to be a fantastic location to invest because it has solid fundamentals and plenty of space for growth.

Gokaldas exports limited 

Gokaldas Exports Limited is one of India's largest garment exporters. Customers include well-known apparel labels such as H&M and Gap. The company's stock has done quite well in recent years and has focused on extending its foreign trade.

Gokaldas Exports Limited is a fantastic company that is rapidly expanding. Their return on equity has increased over the last three years, reaching 21.90%. 

During a similar period, their net profit increased by 22.06%. Sales have increased at a 15.10% annual pace over the last three years, which is also very fast.

This demonstrates that Gokaldas Exports Limited is a company in which to invest. Their revenues have expanded at an annual pace of 84.54% over the last four quarters, with a high rate of growth every quarter.

Vardhman textiles Co., Ltd

Vardhman Textiles Limited is a key player in the spinning and yarn manufacturing industries, with a strong presence in domestic and international markets. As a result, the organization may serve customers in various countries. 

The company's stock has done well in the last five years, and its business operations are still expanding. Vardhman Textiles Limited has achieved an excellent return on equity over the last three years.

The company's revenues have increased by 13.53 percent over the last three years, indicating that the business is expanding at a healthy rate.

Over the last three years, the company's net profit has increased by an astounding 37.30%. The company has been gradually developing, with sales increasing by 45.90% over the last four quarters.

Vardhman Textiles Limited is a fantastic spot for investors to invest their money since it generates great returns and continues developing.

Alok industries limited

Alok Industries Limited is a key player in the textile sector, offering various products and services. This includes spinning, weaving, processing, clothing manufacturing, and sales. 

The firm's stock has continuously increased in value over the last few years, and the company has grown.

AIL has maintained a consistent growth rate over the last three years, with a 31.72% increase in sales. Over the last four quarters, sales have increased by 40.25 percent, indicating that the trend has been consistent. 

However, the current return on equity (ROE) is 2.10%, which is lower than the three-year average. This could be due to increased business competition and other economic issues.

Even though its stock price has fallen, AIL remains a robust firm with a strong market position. Its products are popular with many people, thus growing at a healthy rate. 

Investors may wish to purchase stock in this company because it has a favorable long-term outlook.

Welspun India limited

Welspun India Limited is one of the world's largest manufacturers of home textiles. Target and Walmart are only two of the major retailers who purchase from them. 

The price of its shares has risen significantly over the last five years, and the company is committed to extending its presence in international markets.

Welspun India Limited has grown in revenue and net earnings during the last three years. In addition, their debt-to-equity ratio has improved significantly compared to the three-year average.

Despite these positive indicators, their TSR Growth Index and Profitability Index are relatively low. 

Furthermore, compared to the Nifty, their stock returns have been negative over the last year and three years. Finally, this company's dividend yield is approximately 0.2%.

Welspun India Limited's sales have increased by 12.58 percent each year over the last three years, indicating that the company is in good health. This demonstrates that the organization is performing well and growing at a reasonable rate. 

Furthermore, the company's net profit has increased by 14.91 percent during the last three years. This is yet another proof demonstrating how well the organization is performing.

S Kumars nationwide limited

It is the textile industry's market leader, selling a diverse range of products such as fabrics for suits and shirts and home textiles. The business's stock has consistently increased in value over the last few years, and the corporation has been expanding its operations.

Sangam (India) Limited 

It is a key leader in the textile sector, specializing in producing and processing cotton yarn. The price of its shares has increased significantly over the last five years, and the corporation is still devoted to growing the amount it can make.

What is the future of the textile stock industry in India?

India's textile industry is quite distinctive compared to the rest of the globe, particularly because of the distinctive moats in place. 

As a result, India's Best Textile Sector Stocks benefit from several distinct advantages. When we consider the needs of the home market, we find that the items are also culturally connected or unique.

This sector provides an advantage to Indian producers, even though not every company listed has capitalized on this opportunity. 

However, they have taken advantage of the relatively low production cost in the country compared to other western nations.

Investors must be aware of new obstacles and be prepared to navigate them when investing in the textile industry. These include seasonal pricing fluctuations and the benefits offered by holidays and celebrations. 

Before the epidemic in the year 2018-19, the industry had already contributed 2% to India's GDP. 

In addition, the industry was responsible for 12% of the earnings from exports during the same period, contributing 5% to global commerce in textiles and apparel.

Despite the myriad of challenges faced by the textile industry during the pandemic, they discovered a way out of their predicament. They adapted when it came to the production of covid necessities. Today, India is the world's second-largest producer.

Should you buy textile stocks?

As with much of the economy, the global COVID-19 pandemic is causing structural changes in the textile industry. These changes are happening faster than they would have without the pandemic.

Comfortable clothes that look like athletic wear are here to stay, and people seem energized by shopping online. As the world economy slowly improves, people are going shopping again.

This creates new business opportunities for textile companies that do business online. Those who use the digital age's improvements are entering a new period of growth. 

If you are 100% comfortable with the risks of growth investing, these top textile stocks could be a good addition to a well-rounded portfolio.

Related questions: FAQs

Which companies are the finest in their respective fields?

Raymond, Reliance Industries Limited, Aditya Birla Group, Arvind Mills, and Alok Industries are among the most successful companies in India's textile industry.

Why should investors consider investing in this sector?

The government has launched several programs to assist the textile industry, including the Amended Technology Upgradation Fund Scheme. These programs contribute to the growth of the sector.

Why are textile stocks rising?

People believe this high increase was caused by a combination of incredible things happening globally and within the organization. One of the reasons for people's optimism in this area is that the government is getting more involved.

Is the textile sector a suitable location to invest in?

The textile industry in India is yet one of the most active. Investors worldwide are almost as interested in the Indian textile sector as in the spices industry. Because it is constantly changing, worldwide investors are keen to invest in it.

Conclusion

Investors who want to profit from India's thriving textile industry might consider purchasing one of the best textile stocks. Before you decide to invest, you should conduct your research and consult with a financial advisor.

Have a prosperous business! However, it is important to note that the textile industry faces challenges, such as competition from lower-quality imports and fluctuating raw-material prices. 

As a result of these factors, investors in the sector may face a variety of potential hazards.