The Indian textile industry has grown exponentially and is currently worth about Rs. 12 trillion or about $145 billion, a meteoric rise from less than Rs. 7 trillion in 2014. Understandably, textile stocks are gaining popularity among investors. Additionally, the growth in the textile sector has led to a significant increase in the number of textile shares or stocks, opening up an attractive opportunity for retail investors.
So, if you are thinking about investing your money in the Indian textile sector and looking for the best stocks in the textile sector, keep reading. This blog post will discuss the top textile companies in India that you can choose to invest in.
Textile industry in India: A brief overview
If you are planning to invest in Indian textile stocks, you should know the basics first. So, before we move to discuss the best Indian textile stocks that you can invest in, let’s learn about the textile industry briefly. The Indian textile industry makes up to 4% of the global apparel and textile trade. It is one of the largest textile sectors in the world. It is worth noting that almost 95% of the world’s hand-woven fabric comes from the Indian textile sector. It also plays a significant role in India’s GDP growth and economy. The sector contributes 2.3% of the GDP, 12% of the total export-related earnings, and 13% of the industrial production.
To rewind a bit, the Indian textile sector was one of the oldest industrial sectors. Currently, it offers various types of textile products from the traditional handwoven to capital-intensive mills and modern ones. The industry produces jute, cotton, silk, wool, polyester, and nylon as well as hosiery. The rich history and culture of Indian textiles make this industry unique. According to a report, the Indian textile export market is projected to reach $190 billion by 2025-26.
Top textile stocks in India in 2024 by market capitalization
We have compiled a list of the top textile companies in India by market capitalization.
| No | Name | Market Cap in Rs. Cr | P/E Ratio | Dividend Yield |
| 1 | Page Industries | 48,148 | 83.5 | 0.86 % |
| 2 | Vedant Fashions | 33,094 | 85.9 | 0.63% |
| 3 | KPR Mill Ltd | 32,182 | 39.9 | 0.53% |
| 4 | Trident | 18,504 | 56.4 | 0.99% |
| 5 | Welspun Living | 16,735 | 24.3 | 0.06% |
Overview of the best textile stocks in India
There are several top textile companies in India that are listed on stock exchanges. Below, we will discuss the top textile stocks in India that you can consider investing in.
1. Page Industries
Page Industries Ltd, headquartered in Bangalore, was incorporated in 1995. The company is the exclusive licensee of JOCKEY International Inc. (USA) for the manufacture, distribution, and marketing of the JOCKEY brand in India, Sri Lanka, Bangladesh, and several other countries. The company is also the exclusive licensee of Speedo International Ltd for the manufacture, marketing, and distribution of the Speedo brand in India.
2. Vedant Fashions Limited
Vedant Fashions Limited is an Indian textile company that comes in the list of top textile companies in India. Incorporated in 2002, the textile company primarily focuses on manufacturing and selling ready-to-wear ethnic garments for men, women and children. The company offers a wide range of ethnic wear for both men and women, ranging from indo-ethnic ware, kurtas, sherwanis jackets, sharees, lehengas, kurtis and gowns. The company operates under popular brand names like Manyavar. The other brands include Manthan, Mebaz, Mohey, and Twamev. It has its retail shops across 3 countries and 200 cities.
3. KPR Mill
KPR Mill Ltd was originally incorporated on March 19, 2003. The company is one of the largest vertically integrated apparel manufacturing companies in India producing yarn, cotton knitted fabric, and readymade garments. The company’s production facilities are located in Coimbatore, Satyamangalam, and Tirupur in Tamil Nadu.
4. Trident Ltd
Trident Ltd, a part of $3 billion Trident Group, is headquartered in Ludhiana, Punjab. The firm is a leading manufacturer of yarn, bath linen, and bed linen, among other products. Trident Ltd was incorporated on April 18, 1990. Formerly Abhishek Industries, the company’s name was changed to Trident Ltd on April 18, 2011.
5. Welspun Living Ltd.
Welspun Living is also one of the top textile stocks in India. Welspun India, a part of the Welspun Group, is amongst the largest home textile manufacturers in the world, with a presence in bed, bath, and flooring. Welspun is supplier to 17 of the top 30 global retailers.
Factors to consider before investing in textile stocks in India
The Indian textile sector has attracted investor attention in recent years. If you are considering investing in textile stocks, you should take into account these factors.
Raw material prices
This is the probably the most important factor to look out for before investing in the textile industry. Raw materials are crucial for the textile sector. You should monitor the price changes of cotton, silk, synthetic fibres, and other raw materials as the stock prices and profitability of textile stocks can be impacted by this factor.
Market trends
Market trends are another crucial aspect related to textile industry stocks. It is important to analyze industry trends and overall market conditions which include changing consumer preferences as well as global and domestic demand for Indian textiles. These factors can influence the market performance of textile sector stocks.
Management quality
Before investing in top textile companies in India, one should also evaluate their track record, vision, experience, and overall management quality. Companies with good decision-making history and leadership can easily navigate market fluctuations and industry challenges.
Financial health
Evaluating a textile company’s financial health is another important point to remember before investing in it. You should analyze the financial statement of a company to gain better insight into its profit margins, revenue growth, return on equity, and debt levels. It is always a good choice to invest in a financially stable textile company for long-term benefits.
Competition
Analyzing a textile company’s competitive landscape is another crucial factor to consider when investing in textile sector stocks. Take into account a company’s market share, ability to withstand industry competition, and competitive advantage to understand its market positioning. The growth potential of a company is indicated by its positioning in the competitive landscape.
Export market conditions
When investing in the Indian textile sector, it is important to consider the export market conditions or the demand for Indian textiles in the international market. Textile share prices can fluctuate according to changing export demand.
Should you invest in textile stocks?
Textile stocks in India can offer various benefits to investors. However, it is essential to consider all the factors that can impact the price movements of these stocks and challenges related to the industry. The primary challenge is the fluctuations in the export demands which can impact the profitability and revenue of Indian textile companies. Another important challenge is the South-Asian competitive landscape of the textile industry. Many South-Asian countries such as Bangladesh and China offer textile products at cheaper prices.
The Indian textile sector also depends on government policies that impact the export potential and production costs of a textile company. Thus, it is important to consider all these aspects and thoroughly research the industry and its current market to make an informed decision while investing in the Indian textile industry. It will ensure better investment returns and investment experience.
Conclusion
The growing demand for Indian textiles across the globe has led to significant growth of the Indian textile industry. Probably, time is opportune to invest in Indian textile stocks. We have discussed the top textile companies in India that you can choose to invest in. We have also listed some essential factors to consider while choosing a textile stock.
