Stocks to buy today: Why experts are bullish on these textile shares — explained


Stocks to buy today: After ushering in the new year 2023, stock market has been busy speculating which theme is expected to work in 2023 as 2021 and 2022 remained excellent years for commodity, metal and sugar stocks. In budget 2023, which is also round the corner, market is expecting some booster sops for various sectors that may augur well for stocks of that sector.

According to stock market experts, textile theme is expected to work well in 2023 as some budget sops are strongly expected, which may trigger buying interest in textile stocks. Experts were of the opinion that with a rise in disposable income, the need for goods in the Indian textile sector has expanded, resulting in enormous demand in both the local and international level. They further added that Indian textile industry is expected to register a CAGR of 10 per cent in between 2019 to 2026 and advised positional investors to buy Raymond and Aditya Birla Fashion and Retail shares to buy.

Speaking on the triggers that may fuel textile stocks in 2023, Sandeep Pandey, Business Partner at Emkay Global Financial Services said, “As a result of the pandemic, Indian textile industry saw a considerable decline; however, as the epidemic winds down, it is anticipated that the Indian textile market would recover and develop at a Compound Annual Growth Rate (CAGR) of 10 per cent between 2019 and 2026 to reach $190 billion. In 2019, the industry contributed 7 per cent to the nation’s Gross Domestic Product (GDP).”

India’s textile industry is anticipated to be worth more than $209 billion by 2029, up from a market value of around $140 billion in 2017. During the last five years, the sector has received FDI and several other investments. The ICIL announced a $2.6 million investment in May of 2021. Under the automated approach, the Indian government has authorized 100 percent automation.

Sandeep Pandey, Former Deputy Vice President of HDFC Bank Ltd went on to add that the year 2021 witnessed a surge in the exports of cotton, handloom, and yarn goods by more than fifty percent, signifying an upward trajectory.

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“India is projected to be the second most attractive market by 2025, contributing up to US$ 121 billion, while China is projected to be the most attractive market, contributing up to $378 billion. In 2017-2018, India has one of the fastest-growing economies, with a GDP growth rate of 7.2 per cent. This increases the spending power of the general population and stimulates demand for textile sector goods. This expansion results in a vast array of manufacturing capacities for diverse items that may be shipped both inside India and outside India,” said Sandeep Pandey.

Textile stocks to buy

On textile stocks that one can look at for adding in one’s stock portfolio, Chandan Taparia, Derivative & Technical Analyst at Motilal Oswal said, “In current market scenario, budget is round the corner and this would be the last full fledged budget of this incumbent Narendra Modi government. Sop, the budget is expected to be a populist budget and some sops for the textile sector is strongly expected as the industry is one of the major contributors in the national GDP. I would recommend positional investors to buy Raymond and Aditya Birla Fashion shares and hold for first two months. If the stock delivers then decide next course of action after giving a fresh review to the stock and the sector.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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