Sharekhan bullish on India's textiles sector riding next upcycle

Spice Islands Industries

14/06/2023 08:58

** Indian textile sector poised to ride the next upcycle as 
home textiles and readymade garments players gain market share
in key export markets of U.S., Europe amid receding global
retail inventories, says brokerage Sharekhan
    ** Upgrades view on textile sector to "positive" from
"neutral", citing brighter industry outlook from 2H of FY24
    ** "China Plus One" strategy, potential free trade
agreements, falling cotton, crude prices can help earnings grow
20%-41% over FY23-25, for cos with focus on exports, higher
capacity utilisation - Sharekhan analysts    
    **  Gokaldas Exports Ltd  GOKL.NS , KPR Mill Ltd  KPRM.NS 
and S.P. Apparels Ltd  SPAP.NS  preferred picks in garment
space, Himatsingka Seide Ltd  HMSD.NS  in home textile space
    ** Also initiates coverage on GOKL with "buy" rating, price
target of 635 rupees

 (Reporting by Nandan Mandayam in Bengaluru)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))