List of top textile stocks in India: India has a long history with textiles. Even in the past, there has always been a huge demand for Indian textiles. Indian Jute, cotton, and silk have a great demand internationally, and the numbers justify the demand for Indian textiles.
And we can’t talk about textiles without mentioning the importance of khadi. This article will take you through the top textile stocks in India so read on to find out.
Textile Industry Overview
After China, India stands at #2 in the textile industry. After agriculture, the textile industry is the second largest employer of skilled and unskilled labour in India, employing 45 million people directly.
Even today, textiles take up an important portion of the national economy, contributing up to 2% of the GDP. We’re also the 2nd largest producer of Silk and PPE in the world.
India loves cotton and so do its people. Cotton alone supports the livelihoods of 5.8 million people. 126.14 lakh hectares of land is currently used in India to cultivate cotton. We’re both one of the largest producers and consumers of cotton in the world.
The Indian Textiles market is estimated to be valued at $ 17.6 billion dollars and grew at a CAGR of 10% from 2015-16 to today. At a growth rate of 11%, India’s textile industry is expected to reach a valuation of $100 billion dollars by 2027.
India has already registered textile exports worth $41 billion dollars in 2021. The biggest contributors to FDI in the textile sector are Japan, Mauritius, Italy, and Belgium.
List of Top Textile Stocks in India
Now that you’ve had an overview of the billion-dollar textile industry in India, let’s take a look at the top textile stocks in India (by market cap):
1. Top Textile Stocks In India – Page Industries
Founded in 1994, Page Industries sits at the top of this list with a market cap of ₹54,793 crores. The company is a manufacturer and retailer of loungewear, underwear and socks in India.
Besides manufacturing and retailing their own products, they are the licensee of Jockey International in India, Sri Lanka, Nepal, UAE, and Qatar. The company is also the license holder for Speedo swimwear in India and Sri Lanka as of 2011.
The stock P/E sits at a high 102, as compared to the industry PE of 17.6 and ROE is at 54.4%. It has a healthy dividend payout of 70.3% and a good sales growth of 18.5% over the last 10 years.
With a current market price of ₹49,212, the share is one of the most expensive stocks listed in India.
2. Top Textile Stocks In India – Trident
Trident Ltd is the subsidiary of Trident Group. The company manufactures yarn, bath linen, bed linen and wheat straw paper.
Yarn contributes 26% of the company’s revenues and home textiles, which includes bath and bed linen, comforters, sheets and pillows contribute 54% of the company’s revenues.
Trident is also the largest manufacturer of terry towels and wheat straw-based paper. In India, they are the second largest home textile maker and yarn manufacturer.
Besides textiles, they also manufacture battery-grade sulphuric acid and are currently its largest manufacturer in North India.
The stock PE is at 24.3, almost equal to the Industry PE of 23.1. They have a good profit growth of 19.94% CAGR over the past 5 years and a healthy dividend of 45%.
3. Top Textile Stocks In India – K P R Mill
K P R Mill is an apparel manufacturing company. They also produce yarn, knitted fabrics, and wind power. The company has a wide range of business products from textiles like yarn to automobile parts and ethanol.
Yarn and fabrics account for 42% of revenues, followed by garments (42%) and sugar (12%). Out of this, 65% of revenue from sales comes domestically and the remaining 35% is from international sales, exporting to over 60 countries including the UK, China, USA and.
Similar to the top two players, K P R Mill has a stock PE of 22 close to the industry PE of 17.6. They have an exceptional profit growth of 23.67% CAGR over the past 5 years and an ROE of 25.5% over the past three years.
4. Top Textile Stocks In India – Alok Industries
Founded in 1986 and headquartered in Mumbai, Alok Industries is a textile manufacturing company with a market cap of ₹9,906 crores. They have two types of textile manufacturing – Cotton and polyester. 26% of its products are exported to over 90 countries.
5 year profit growth stands at 14% and 3 year stock price CAGR is at a high 91%. However, 5-year compounded sales growth stands at a low -3%.
5. Top Textile Stocks In India – Welspun India
Part of the Welspun Group, Welspun India is the Indian Subsidiary of the US-based textile manufacturer. They export their products which range from bathrobes and towels to flooring carpets. They supply to retailers such as Walmart, Bed Bath and Beyond, Ikea and Costco.
US and European countries account for 84% of the total export revenue of Welspun India. ROE stands at 15.8% and the stock PE is at 17, which is lower than the industry PE of 23.1. Compounded sales growth has grown at a CAGR of 13%.
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Is The Indian Textile Industry Growing?
The Indian textile industry is one of the oldest in our economy. The industry is expected to grow at a 10% CAGR between 2019-20 all the way to 2025-26, amassing an industry value of $190 billion dollars.
Already, India is the largest producer of cotton, a primary material in textiles and clothing worldwide. Our exports of textile and apparel stood at $44.4 billion as of FY 2022.
India’s textile industry stands in a unique position, as we’re in competition with the likes of China, and currently, Make In India is a priority for the government.
This gives a competitive advantage over other countries and puts the current state of the industry in a unique state. Let us know what you think about the top textile stocks in India.
If you liked this article, then let us know in the comments. Happy Investing!
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