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Increased capacity utilisation, softening cotton prices set to help sector: Analysts
At the bourses, shares of textile stocks like KPR Mills, Welspun India, and Vardhman Textiles have tumbled up to 45 per cent so far this year.
According to the technical analyst from Anand Rathi, KPR Mill can rally to Rs 640, while Thermax can surge to Rs 2,400.
According to the analyst from Anand Rathi, KPR Mill can rally to Rs 595, while Shriram Transport Finance can surge to Rs 1,500 in the near term.
Analysts expect that the inflated cotton prices will continue to haunt small-sized yarn spinners during the first half of FY23 (H1-FY23). However, a good monsoon season can paint a different story
With 24% correction in June, the stock of the garments & apparels maker has corrected 38% from its record high level of Rs 771.80
Major textile stocks are witnessing sideways to breakout formations, this may see stronger interest of market participants.
In the past 11 trading days, KPR Mill's market price has advanced 16 per cent after the company announced the successful commissioning of its new 42 million garments production capacity at Tamil Nadu.
Shares of Arvind Limited have formed a "Golden Cross" symbolizing a positive outlook for the upcoming sessions, according to the daily chart
The stock quoted ex-split from Friday onwards, and in the last one month had rallied 42 per cent.
The company will sub-divide the face value of equity shares from Rs 5 each to a lower denomination to make the stock more affordable for the small retail investors and increase liquidity
The company said that the new expansion project of 42 million garments factory and sugar cum ethanol plant was progressing as per schedule
According to experts, demand from the home textile industry is expected to remain supportive in the near-to-medium term
The company said enquiries from the current clientele as well as from the new markets are much encouraging
As per media reports, the US has imposed restrictions on the import of certain products such as cotton and apparels from the Xinjiang Autonomous Region in China
Further, companies such as KPR Mill, which had withdrawn their buybacks following the unexpected tax outgo, have restored their buyback plan
The company said it is not permitted to meet the buyback obligations beyond the amount approved by the board of directors and the same can also be effected only with the borrowed funds.
The stock rallied 8% to Rs 730 on the BSE in intra-day trade in otherwise weak market after the textile company said that its board will meet on Thursday to consider share buyback proposal.
The stock was trading higher by 7% to Rs 600 on the BSE after the stock turned ex-stock split to Rs 5 from Rs 10.
The stock hit a record high of Rs 1,242 has been more-than-doubled from its 52-week low of Rs 620 hit on Feb 17, 2016 in intra-day trade.