Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

Despite lean phase Indian textile stocks register positive returns

Indian textile stocks have performed well in the last one year. Out of the 52 textile stocks, 43 have fetched positive return on investments (ROIs) despite Indian textiles going through a lean phase since the last few years despite the government’s measures have done little to help the industry.

The industry is facing issues like falling exports of cotton yarn and apparel, growing competition from China, negative impact of global economic slowdown, mounting inventories, lack of capital infusion for technology upgradation and volatile stock markets among others for a long time.The ongoing Chinese economic slowdown is a fresh phenomenon, but the Indian textile industry, mainly cotton yarn producers and apparel exporters, are on tenterhooks since long on account of escalating raw material prices and falling overseas demand.

The shares of Blue Blends (India) generated a hefty return of 585.20 per cent in the last one year. Similarly, Premco Global has skyrocketed 305.86 per cent to Rs 765.25 from Rs 188.55 as on January 15, 2015. The more significant fact is that these ROIs have outperformed benchmark indices big time. In last one year, the S&P BSE Sensex and Nifty 50 have tanked by over 12 per cent, while the BSE Small cap Index, too, has plunged 4.69 per cent.