Best Textile Stocks in India (2023) (2024)

Best textile stocks in India

Note: The data is from 28th September 2023. To get this list of best textile companies in India on the Tickertape Stock Screener, apply the below-mentioned filter.

• Sector > Consumer Discretionary > Textiles
• Net Income: Set to Positive – Sort from highest to lowest
• 1Y Return: Set to Positive – Set the lower limit to zero
• Net Profit Margin: Set to High

About the best textile companies in India

Soma Textiles & Industries Ltd

With a market cap of Rs. 63.09 cr., Soma Textiles & Industries Ltd manufactures and sells cotton yarn, polyester blended yarn, denim (indigo dyed) fabrics, shirting and garments. Here’s a sneak peek at the company’s financials and performance.

• Over the last 5 yrs, the revenue growth has averaged 119.48%, vs an industry average of 7.03%. During the same period, the stock had a lower debt-to-equity ratio (-164.29%) than its industry average (250.16%). However, the company lags behind the industry average regarding net income and current ratio.
• Per the Tickertape Scorecard, the stock is undervalued and shows good signs of profitability and efficiency, with a 9 out of 10 score. However, it lags behind the market in financial growth.
• In the last 6 months, promoter holding in the company has increased by 9.09%.
• The stock is 5.90x as volatile as Nifty.

Click here to gain extensive insights on the company’s financials, holdings, recent events, etc.

Orbit Exports Ltd

With a market cap of Rs. 428.72 cr., Orbit Exports Ltd is a weaving company that operates through two segments: Windmill Power Generation and Manufacturing of Textiles. Here’s a sneak peek into this small-cap company’s performance.

• In the last 5 yrs, the company’s revenue has grown yearly at 17.72%, vs the industry average of 7.03%. During the same period, the company saw an increase in its current ratio (373.01%) than its industry average (110.6%). However, for the same period, the net income has averaged 130.09%, vs the industry average of 193.88%.
• The stock is 4.26x as volatile as Nifty.
• On the Tickertape Scorecard, the stock ranks higher in profitability, 7.9 out of 10, showing good signs of profitability and efficiency. However, the stock has not fared well regarding performance, valuation, and growth scores.
• The stock is underpriced and is not in the overbought zone. Further, there are no red flags found in the stock.

Find out more about the stock and compare it with its peers here.

Voith Paper Fabrics India Ltd

With a market cap of Rs. 747.81 cr., Voith Paper Fabrics India Ltd is a small-cap manufacturer of industrial felts. It supplies a range of paper machine clothing (industrial felts) for pulp, paper, paperboard, and fibre-cement industries. Here’s a sneak peek into this small-cap company’s performance.

• In the last 5 yrs, the company’s revenue has grown at a yearly rate of 11.6%, vs the industry average of 7.03%. During the same period, the company’s net income (12.14%) has been lagging behind its industry average (193.88%).
• On the Tickertape Scorecard, the stock ranks higher in profitability, 7.6 out of 10, showing good signs of profitability and efficiency. It is average in terms of performance and stated overvalued by the Scorecard. Further, the stock lags behind the market in financial growth.
• Though there are no red flags in the stock, it is overpriced but is not in the overbought zone.
• Over the last 5 yrs, the company’s market share increased from 0.08% to 0.11%.

Dive deeper into the stock, find out its dividend yield, and more here.

The textile industry is one of India’s biggest industries, contributing about 2% of the country’s GDP. Moreover, the industry employs 45 mn directly and 100 mn in the associated industries, making it the second largest employment source. With the recent report indicating the textile industry is expected to reach $100 bn valuation in the next 5 yrs, let’s look at how big is the textile industry and more.

Factors to consider while investing in the textile industry stocks in India

Market capitalisation: Check the company’s market cap. Usually, large market-cap stocks are less volatile to market fluctuations than mid-cap or small-cap companies. However, there are instances where small-cap or mid-cap companies delivered better returns than large-cap companies.

Profits: Ensure that the stock has been providing consistent profits. This means that it can offer a good value to the investor. However, a stock performing well consistently may drop due to several reasons like market conditions, management changes, etc.

How big is the textile industry in India?

The textile industry in India is huge. It holds ~5% of the global share in textiles and apparel. India is also one of the largest producers of jute and cotton and the second-largest silk producer worldwide.

As the country’s second-largest employment source, the industry has a direct employee base of 45 mn and 100 mn in the associated industries. In the next 5 yrs, textile exports are expected to reach $100 bn at a CAGR of 11%.

Conclusion

Looking at the demand and growth, the textile industry seems to be in good shape. However, it is important to look at the individual company and their growth prospects along with the industry. Use Tickertape’s Stock Pages to analyse a company. You can look at the Scorecard to understand its growth, performance, profitability, and valuation.

Overall, analyse a company thoroughly and invest wisely.

FAQs

What are the textile stocks in NSE?

There are over 250+ textile stocks in NSE. Use Tickertape’s Stock Screener to get the list of these stocks. Follow the steps below to get the list of textile stocks in NSE:

• Log in to Tickertape
• Launch the Stock Screener
• Search and select ‘Textiles’ under ‘Sector’

You can filter these stocks based on your preferred parameters like market cap, 1-yr returns, 5-yr CAGR, and more.

What are the best small-cap textile stocks in India?

The best small-cap textile stocks in India can vary according to key parameters like market cap, Return on Equity (ROE), EPS, net profit margin, etc. Use Tickertape to get the list of the best small-cap textile stocks.

• Log in to Tickertape
• Launch the Stock Screener
• Search and select ‘Textiles’ under ‘Sector’
• Select ‘Nifty Smallcap 100’ under the ‘Stock Universe’