The firm said it has been ‘gloom and doom’ for the domestic industry in the past few months because of high cotton prices and low demand for textiles and apparel in Western countries.
“New FTAs (free trade agreements) would offer opportunities to large established players, capturing a higher wallet share by entering into adjacencies in existing geographies,” said Emkay’s analysts Abhineet Anand and Chinmay
in a recent note to clients.
“Textile PLI (productionlinked incentive) schemes by the government are largely focused on MMF (man-made fibre) — a weak point presently, for the Indian textile industry — which will help to build an ecosystem similar to cotton textiles’, over the medium term.”
CMP: Rs 293.50
Target Price: Rs 455
Upside Expectations: 55%
YTD Stock Movement: -41%
- Best placed to withstand current woes in the textile sector; strong balance sheet
- Country’s largest spinning capacity, better utilisation and higher realisation versus peers
- Debt-to-equity ratio stands at 0.24 times versus 1.24 times a decade ago
Nitin Spinners
CMP: Rs 184
Target Price: Rs 310
Upside Expectations: 68%
YTD Stock Movement: -32%
- Moved up the value chain by widening the product portfolio
- On track to increase yarn, knitting and weaving capacities by 30-50% over 12-15 months
- Demand uptick and lower cotton prices remain key triggers
Gokaldas Exports
CMP: Rs 342.50
Target Price: Rs 575
Upside Expectations: 68%
YTD Stock Movement: 4.4%
- Better return on equity (RoE) profile and higher earnings prospects
- During FY22-25, earnings per share will grow 24% and RoE will be at 18%
- Five-year average priceto-earnings (PE) ratio at 14 times, with a 14% RoE
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