Top Textile Industry Stocks to Buy in India for 2024

The Indian textile industry has a rich history that dates back to ancient times. Traders worldwide highly sought the high-quality cotton and silk fabrics that India produced. India’s textile stocks and apparel industry is the largest source of foreign exchange earnings and one of the leading textile industry stocks.

As per reports,
The Indian textile sector contributes 4% to the country’s gross domestic product (GDP), 20% to its industrial output, and almost 30% to exports. About 38 million people are employed in the Indian industry, making it the single largest source of industrial jobs and the second-largest overall (after agriculture).

The top textile stocks in India can offer investors a unique opportunity to gain exposure to a diverse and dynamic sector with the potential for high growth and resilience to economic cycles. Therefore, in this blog, we will explore the various aspects of the best textile stocks to buy in India, focusing on textile shares, their types, benefits, risks, and more.

Top 10 Textile Companies in India

Let’s quickly look at the top 10 textile stocks in India, sorted according to their 5-yr average net profit margin in this textile stock list.

Company Name	Market Cap (Rs. in Cr)	Share Price (Rs.)	Close Price	PE Ratio	5Y Avg Net Profit Margin (%)	5Y Avg Return on Equity (%)
Addi Industries Ltd	49.28	45.64	45.64	10.57	69.90	26.34
Bhilwara Spinners Ltd	141.87	156.70	156.7	82.01	32.75	9.04
Pasari Spinning Mills Ltd	15.08	10.93	10.93	35.08	30.96
Jagjanani Textiles Ltd	19.64	12.59	12.59	5.11	28.25
Vedant Fashions Ltd	32,799.92	1,350.30	1350.3	79.19	26.93	25.53
Everlon Financials Ltd	86.18	139.00	139	10.76	22.04	20.15
Aananda Lakshmi Spinning Mills Ltd	5.91	16.90	16.9	1.45	21.34
Shri Techtex Ltd	154.81	62.05	62.05	12.60	21.29
Voith Paper Fabrics India Ltd	1,013.39	2,307.05	2307.05	27.92	19.34	10.84
Shri Dinesh Mills Ltd	252.19	450.30	450.3	4.99	18.09	14.78

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data in this list of the best textile shares in India is from 30th September 2024The stocks are filtered using Tickertape Stock Screener using the following parameters:

• Sector: Textiles
• 5Y Avg Net Profit Margin: Sorted from Highest to Lowest

🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

Top Textile Stocks in India: An Overview

Addi Industries Ltd

Addi Industries Limited currently trades in plastic products and is establishing facilities to manufacture tarpaulins and plastic bags. It is one of the top small cap textile stocks on our list. Originally incorporated as JRC Finvest Limited on 3rd May 1994 in Gujarat, the company began commercial operations the same year. Initially, it focused on leasing, hire purchase, bill discounting, short-term lending, and offering investment banking, advisory, and consultancy services. Over the last 5 years, the company’s revenue has grown at a yearly rate of 47.9%, higher than the industry average of 3.97%, making it one of the best textile stocks to buy in India.

Bhilwara Spinners Ltd

Bhilwara Spinners, part of the Bhilwara group from Rajasthan, produces cotton yarn, synthetic blended yarn, hosiery yarn, and sewing threads. Initially a subsidiary of Rajasthan Spinning & Weaving, it became an independent company in 1990-91. The company exports its products to Western Europe and East Asia. Over the last 5 years, the company’s debt-to-equity ratio has been 24.45, significantly lower than the industry average of 213.34, and its current ratio has been 498.84, higher than the industry average of 123.88, making it a standout in the best textile stocks to buy in India.

Pasari Spinning Mills Ltd

Pasari Spinning Mills Ltd, established in 1991 and based in Bangalore, manufactures and exports cotton yarn within India. In addition to cotton yarn, the company trades silk fabrics and nylon. It went public in June 1993. Over the last 5 years, the company’s net income has grown at a yearly rate of 9.75%, higher than the industry average of 4.49%. As of 30th September 2024, the company had a market capitalisation of Rs. 15.08 cr., and its share price closed at Rs. 10.93, placing it among the top textile companies in India.

Jagjanani Textiles Ltd

Jagjanani Textiles Limited was established on 1st April 1997 to manufacture and trade in yarn. In November 1997, the company acquired land in RIICO Industrial Area, Bagru, Jaipur, to set up a modern yarn production unit. The spinning plant, with a total investment of Rs. 1650 lakhs, was partially operational by March 1999 and fully completed by February 2000. Over the last 5 years, the company’s revenue has grown at a yearly rate of 95.52%, higher than the industry average of 3.97%. 

Vedant Fashions Ltd

Vedant Fashions Limited, established in 2002, operates in the manufacturing and trading of textiles, leather, and apparel products. The company engages in both wholesale and retail trading. In 1999, the company introduced Manyavar, a men’s celebration wear brand. By 2007-2008, it opened its first Exclusive Business Outlet (EBO) in Bhubaneswar, marking the brand’s expansion beyond Kolkata. Over the last 5 years, the company’s revenue has grown at a yearly rate of 11.88%, higher than the industry average of 3.97%, and its market share increased from 0.62% to 0.86%, making it one of the best textile company in India.

Everlon Financials Ltd

Everlon Synthetics Limited, established in 1989, specialises in producing polyester texturised yarn, a key material for synthetic fabrics such as suitings, shirtings, sarees, dress materials, and knitted fabrics. The company operates a factory in Silvassa, Dadra & Nagar Haveli, equipped with four draw texturising machines, each with 312 spindles. Everlon plans to expand its texturising and twisting capacities. With future expansion plans in place, Everlon continues to stand out as one of the top 10 textile companies in India. Over the last 5 years, the company’s debt-to-equity ratio has been 20.57, significantly lower than the industry average of 213.34, and its current ratio has been 4203.95, much higher than the industry average of 123.88.

Aananda Lakshmi Spinning Mills Ltd

Aananda Lakshmi Spinning Mills Limited, incorporated on 21st March 2013, faced significant financial challenges during the COVID-19 pandemic, which disrupted production, supply, and sales. As a result, the company ceased manufacturing operations at its Bhongir unit in Nalgonda District, Telangana. Currently, the company focuses on the manufacturing and trading of agricultural machinery. Over the last 5 years, the company’s revenue has grown at a yearly rate of 18.75%, higher than the industry average of 3.97%, positioning it among the top textile companies in India.

Shri Techtex Ltd

Shree Techtex Limited began as a partnership firm under the Partnership Act, 1932, named ‘M/s Shree Techtex Company,’ as per the Partnership Deed dated 7 January 2011. On 3 July 2018, the firm’s name was changed to ‘M/s Shri Techtex’ through an amendment to the partnership deed. Later, on 8 September 2018, the firm was converted into a private limited company, becoming ‘Shri Techtex Private Limited,’ through the Central Registration Centre. Over the last 5 years, the company’s debt-to-equity ratio has been 73.63, lower than the industry average of 213.34. Its current ratio has been 330.19, higher than the industry average of 123.88,  marking it as one of the best textile stocks to buy in India.

Voith Paper Fabrics India Ltd

Porritts & Spencer (Asia) (PSAL), a subsidiary of the UK-based Porritts & Spencer, began operations in 1974 with its manufacturing facility in Faridabad, Haryana. PSAL produces specialised engineered fabric, known as felt, used in the wet and dryer sections of the paper, pulp sheeting, and cement industries. The company manufactures around 10 varieties, including wet and dryer felts, calendering and decreasing felts, textile finishing conveyors, denim-finishing felts, and spiral-linked dryer fabric. Over the last 5 years, the company’s revenue has grown at a yearly rate of 9.97%, higher than the industry average of 3.97%, and its market share increased from 0.09% to 0.12%, positioning it in the top textile stocks in India.

Shri Dinesh Mills Ltd

Incorporated in 1935 in Vadodara, Shri Dinesh Mills (DHL) has established itself as a prominent name in woollen suiting. Over the years, the company has expanded its operations to produce paper-maker felts, industrial fabrics, basic chemicals, and electroplating. Through a technical collaboration with Albany International, Canada, Shri Dinesh Mills manufactures advanced paper-maker felts, asbestos felts, and industrial felts, meeting modern industry standards. Over the last 5 years, the company’s revenue has grown at a yearly rate of 11.56%, higher than the industry average of 3.97%, and its market share increased from 0.07% to 0.1%, earning its place among the top textile companies in India.

How to Invest in Textile Stocks in India?

As the world’s largest textile industry, India has the most spindles installed for spinning yarn. Therefore, when investing in multibagger textile stocks or apparel and luxury stocks India, you must have a Demat account to witness potential portfolio returns. 

You can invest in textile industry shares through individual listed textile companies in India on stock exchanges like NSE or BSE. Alternatively, textile-focused mutual funds or ETFs offer diversified options. Indirect exposure can be gained by investing in related businesses along the textile supply chain, such as cotton producers or machinery suppliers. Research and consider your investment goals and risk tolerance before choosing the best textile stocks to buy in India.

What are Textile Stocks?

Textile stocks refer to the shares of companies operating in the textile industry. The production, processing, and distribution of textiles and apparel involve these companies. Investors interested in the textile industry shares may track the Nifty Textile Index. This market index includes top textile companies in India and reflects the overall performance of the Indian textile industry in the stock market. 

However, some investors may seek multibagger textile stocks, aiming for substantial returns over the long term. At the same time, others might be categorised as textile penny stocks in India, low-priced stocks with higher volatility and risk. Therefore, investing in the best textile stocks in the Indian stock market can provide investors with exposure to the Indian textile industry.

The Indian Textile Industry

The Indian textile industry, during the British colonial period, exported textiles to many countries and was one of the largest in the world. However, after independence, the industry faced several challenges, including a need for modernisation and competition from synthetic fabrics.

Currently, the textile industry contributes about 14% to the country’s industrial output and about 17% to export earnings. The textile industry shares cover a wide range of segments, including cotton, silk, jute, wool, and synthetic fibres. The cotton textile industry dominates the sector, which accounts for around 70% of the total textile production. Other significant segments include the synthetic and silk textile industries.

Therefore, the Indian government has launched several schemes to elevate India as a top textile industry globally. One such scheme is the Amended Technology Upgradation Fund Scheme (ATUFS), which financially supports listed textile companies in India in modernising their machinery and equipment. Another scheme is the Integrated Textile Park (ITP) scheme, which aims to develop textile parks that provide infrastructure and support services to any textile company in India.

The Role of Sustainability in the Textile Industry

As one of the largest textile producers globally, India faces significant issues such as water scarcity, pollution, and labour exploitation. Emphasising sustainable practices—like using organic materials, reducing water consumption, and ensuring fair labour conditions—helps mitigate these impacts. On the stock market, textile companies with robust sustainability strategies may enjoy a competitive advantage, potentially resulting in higher valuations. Investors are increasingly considering environmental, social, and governance (ESG) factors when making decisions, meaning that sustainable practices can positively influence stock performance. 

How to Identify the Best Textile Stocks to Buy in India?

Identifying the best textile stocks to buy in India involves thorough research and analysis. Here are five important points to consider:

• Financial Health and Performance: Evaluate the financial health of textile companies by analysing key financial indicators. Such as revenue growth, profit margins, and return on equity.
• Industry Position and Market Share: Assess the company’s position within the textile industry and its market share. Companies with a dominant market share benefit from economies of scale, making them potential candidates for the best textile share.
• Management Quality and Corporate Governance: Examine the management team’s track record and strategic decisions. A company with a transparent corporate governance structure and a history of sound management practices can navigate challenges successfully and create long-term shareholder value.
• Global and Domestic Demand Trends: Stay informed about the trends in global and domestic demand for textiles. Companies that adapt to changing consumer preferences explore international markets and, thus, invest in technology to enhance product quality and innovation are better positioned for long-term success.
• Value Chain Integration and Diversification: Consider companies that have a well-integrated value chain and diversified product offerings. In multiple stages of the textile production process, companies involved in vertical integration gain cost advantages, positioning them among the best textile shares.

Types of Textile Sector Stocks

Textile stocks refer to the stocks of companies involved in the textile industry. These stocks can be divided into categories based on the type of textile product the company produces. The categories of textile stock are listed below:

• Cotton-Based Textile Stocks: The best textile industry stocks to buy in India are associated with companies that produce textiles made from cotton. The textile industry companies use cotton as a major raw material. These stocks can be influenced by factors such as the availability and price of cotton. 
• Synthetic and Blended Textile Stocks: Companies that produce textiles made from synthetic fibres or a blend of synthetic and natural fibres associated with these textile stocks. Factors such as the price of raw materials, technological advancements, and consumer demand can influence these textile stocks. 
• Garment Stocks: Companies producing finished garments, such as shirts, pants, and dresses, are associated with these textile industry shares. These textile shares can be influenced by factors such as consumer demand, fashion trends, and production costs. 
• Technical Textile Stocks: Associated with companies that produce textiles. Used in industrial applications, such as automotive textiles, geotextiles, and medical textiles. 
• Home Textiles Stocks: These best textiles shares can be associated with textile manufacturing companies. These companies produce textiles used in home furnishings, such as bed linen, curtains, and towels.

Benefits of Investing in the Textile Sector

Here are some benefits of investing in the top 10 textile stocks in India.

• Growth Potential: Textile brands in India, including the best clothing stocks in India, have a high growth potential due to factors such as increasing population, rising disposable income, and changing consumer preferences. This positions the best textile shares in India for strong future returns.
• Export Potential: Companies in the textile industry have a significant presence in international markets and have the potential to expand further. Investing in textile stocks can provide exposure to this export potential.
• Diversification: Investing in textile sector stocks can diversify a portfolio, as the textile industry shares are not highly correlated with other sectors.
• Resilience to Economic Cycles: The textile industry companies can be relatively resilient to economic cycles. The reason is the potential demand for textile products tends to remain stable even during economic downturns.
• Brand Recognition and Reputation: Many textile companies in India have well-established brands and strong reputations for quality, giving them a competitive advantage and potentially driving stock price growth for the best textile shares in India.

As always, investors must do their own research and/or consult their financial advisor before investing.

Risks of Investing in Textile Stocks in India

Since every investment opportunity comes with a certain degree of risk, it becomes important to consider every aspect. Therefore we have listed some primary challenges of investing in the textiles business and how you can mitigate them by investing in smallcase (smart investment portfolio platform). 

• Fluctuating Demand: Fluctuations in demand can impact the revenue and profitability of the textile industry in India, affecting textile share prices of even the best textile shares. Therefore, by investing in smallcase, you can potentially mitigate the challenge. Thus, by accessing expert-curated investment themes and portfolios that focus on well-positioned companies to navigate market fluctuations.
• Competition from Other Countries: Several countries (China, Bangladesh, and Vietnam) offer similar products at lower prices than Indian textile companies. These countries can impact the export potential and profitability of Indian textile companies and textile share prices. Therefore, you can invest directly in companies with strong brand recognition, established customer bases, and unique product offerings to avoid foreign competition.
• Dependence on Government Policies: The textile industry is highly dependent on government policies related to trade, taxation, and regulation. Changes in textile share prices, production costs, raw materials availability, and export potential can affect a textile company’s profits. Hence, smallcase provides regular updates on policy changes and their possible impact on portfolio investment themes. This allows investors to make informed investment decisions.

Factors Affecting Textile Sector Stocks

With an overwhelming presence in the country’s economic life, portfolio investing in textile stock in India can be a good option for many investors. Therefore, let’s review some of the factors before we begin further. 

• Raw Material Prices: The price and availability of raw materials, such as cotton, silk, and synthetic fibres, can impact the profitability of textile manufacturing companies and, therefore, affect textile stocks and textile share prices.
• Foreign Exchange Rates: The value of the Indian rupee relative to other currencies can impact the cost of importing raw materials. Thus, this influences the share prices of multibagger textile stocks and the best textile shares in India.
• Government Policies: Policies related to trade, taxation, and regulation can impact the company’s profitability and affect textile share prices. For example, changes in import/export policies can potentially impact the availability and cost of raw materials, while changes in taxation policies can affect the cost of production and profitability.
• Export Market Conditions: The potential demand for textile products in international markets can impact the revenue textile manufacturing companies earn. Strong global demand boosts the performance of best textile shares, whereas weakened export markets can lead to declines in textile share prices.

Factors to Consider Before Investing in Textile Stocks in India

While looking at the list of top 5 textile stocks in India, including the best clothing stocks in India, it’s crucial to consider various factors to make informed decisions. Here are key factors to evaluate:

• Market Conditions and Trends: Assess the overall market conditions and trends in the textile industry. Look at factors such as demand for textiles, global and domestic economic conditions, and emerging trends in consumer preferences.
• Financial Health of the Company: Evaluate the financial health of the textile company by analysing financial statements. Consider parameters such as revenue growth, profit margins, debt levels, and return on equity. A financially sound company is better positioned for long-term success.
• Management Quality: Examine the management team’s track record, experience, and strategic vision. Companies with a history of effective leadership and sound decision-making are more likely to navigate industry challenges successfully.
• Industry Position and Competition: Understand the company’s position within the textile industry and its competitive landscape. Assess its market share, competitive advantages, and ability to withstand competition. Companies with a strong market position have the potential to grow.

To Wrap It Up…

Looking at the increased consumption and unique moat of textile manufacturing companies, the textile sector stocks can offer an impressive opportunity to invest in the best textile stocks in India.  Thus, investing in textile stocks can potentially be a progressive and profitable strategy for you to diversify your portfolio. This can also capitalise on India’s growing textile industry. However, it’s essential to conduct thorough research and consult with a financial advisor before choosing the best textile stocks to buy in India.

Frequently Asked Questions About Textile Stocks

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