Due to high volumes and optimism about an improving business outlook, shares of textile and allied firms surged up to 20% on the BSE during Monday’s intraday trading. By contrast, at 02:01 pm, the BSE Sensex was down 0.45 percent at 81,767.
Mafatlal Industries rose 14%, Donear Industries and Siyaram Silk Mills jumped 20%, while Jindal Worldwide, Zodiac Clothing Company, Shiva Mills, Suryalata Spinning Mills, and Surylakshmi Cotton Mills all had 10% increases. Arvind, Himatsingka Seide, Vardhman Textiles, and Indo Count Industries all saw increases of between 2 and 6 percent.
Siyaram Silk Mills Ltd
In recent years, the textile industry had a healthy consolidation and is currently continuing its rising trajectory. Analysts claim that India’s exports have begun to outperform the export market, indicating a rise in market share. This is because China+1 and merchants are searching for alternatives to Bangladesh because of the country’s unstable economy.
The expansion of capacity with value-added products, the China+1 factor, the government signing trade agreements in multiple nations, the Production Linked Incentive (PLI) scheme’s incremental benefits, and market share gains in export markets all contribute to the Indian textiles industry’s promising long-term growth prospects.
Gokaldas Exports, one of the individual stocks, surged 48% in a single month to reach a new high of Rs 1,210.65. In the second half of the fiscal year 2024–2025 (H2FY2025), from October to March, the company’s management anticipates a robust rebound in performance. They also anticipate that the momentum will continue as demand in international markets improves.
Gaining market share in current regions, diversifying by acquiring customers in new areas, and increasing capacity would enable Gokaldas Exports to generate steady double-digit revenue growth in the short to medium term (with sales expected to increase at a 15% compound annual growth rate, or CAGR). Rising apparel consumption in developed economies, shift of base from China/Bangladesh, and potential FTA signing with the UK will provide large opportunities in the long run, the brokerage firm Sharekhan said.
In the meantime, Siyaram Silk Mills, which on December 12 introduced Cadini Italy Perfumes to India, surged 39% in only two days to reach a new high of Rs 1,160.
One of the most well-known manufacturers and distributors of fabrics, ready-made clothing, and other textile goods in India is Siyaram Silk Mills. The business also owns and franchisees a chain of retail locations that sell clothing, accessories, and trendy textiles for men. The business offers its goods under a number of labels that customers find easy to remember. Brands like Siyaram, J. Hampstead, Oxemberg, and Cadini are among them.
The management anticipates that the rest of the fiscal year will be robust due to good market circumstances and rising customer demand, laying the groundwork for future expansion and success.
Due to a 25-fold increase in trading volumes, Donear Industries’ shares reached a 52-week high of Rs 161 and were caught in a 20% upper circuit. A combined 2.86 million equity shares changed hands on the NSE and BSE.
The Indian government unveiled a number of initiatives to boost the textile industry. Programs such as the National Technical Textiles Mission, the Amended Technology Up-Gradation Fund Scheme (ATUFS), the Scheme for Capacity Building in Textile Sector (SAMARTH), the Production Linked Incentive Scheme (PLI), PM-MITRA, the Scheme for Integrated Textile Parks (SITP), the National Technical Textile Mission (NTTM), and the National Institute of Fashion Technology (NIFT) are designed to facilitate business operations, develop and employ technical textiles, man-made fibre clothing, etc.