Since the past few years, the Indian textile industry has been going through a bad phase, and the steps taken by the government have done little to alleviate the situation.
The lack of capital infusion for technology upgradation, growing rivalry with China, mounting inventories, falling exports of cotton yarn and apparel and negative impact of global economic slowdown are only some of the crucial issues encountered by the stakeholders of the industry.
In the face of such diverse and critical challenges, stocks of the Indian textile companies have managed to perform well in the past one year. In all, 43 stocks have fetched positive ROIs, out of the 52 textile stocks.
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A huge return of 585.20 per cent was generated in the past one year by Shares of Blue Blends (India). The small cap stock spurted to Rs 80.10 as on January 15, 2015, from Rs 11.69 a year ago. The shares of Spenta International have given a return of 339.42%. Similarly, Premco Global also accentuated from 305.86% to Rs. 765.25 from Rs. 188.55 as on January 15, 2015.
The other top performers of the industry included Pioneer Embroideries (252.23%), Soma Textiles (193.70%), Welspun Syntex (189.75%), K G Denim (165.59%), Ruby Mills (148.38%), Welspun India (143.22%), Mafatlal Industries (106.77%) and BSL Ltd (104.82%). Among other stocks, there are 13 textile stocks with ROI between 50-90 % while 17 stocks offered ROIs below 50 percent.
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Most of the textile firms in India trade raw material or finished products on a 30-day credit. A significant increase in defaulters has now added to woes of Indian Apparel Industry. Hence, the Gujarat Manufacturing Association has decided to blacklist such defaulters and has prevented them the market access.
