Will small players turn bigger as the textile sector changes for good? 5 stocks from different specialised segments

Synopsis

If one looks at some sectors, despite being in existence for ages, most of the players are small or mid-sized players. For example sugar, there is hardly a largecap company in that sector. Similar is the case with textiles, it is mostly dominated by small or medium-sized players. There is a reason for it. In the case of textiles, right from having labour issues to smaller Asian countries becoming more competitive in terms of cost of production, and tariffs readjustment due to WTO norms different segments of the textile industry have faced more headwinds than tailwinds in their history of existence. But in the last two years, things have changed, though one can argue that the speed of change has been slower, but surely schemes like PLI and developments like China Plus One are showing impact on working. This list is drawn from Stock Reports Plus, powered by Refinitiv, with over 4,000 listed stocks along with detailed company analysis focusing on five key components - earnings, fundamentals, relative valuation, risk, and price momentum.

While they come under the broad word of “ textile sector ”, each company has a very different operating matrix. A fully integrated textile player with its own brands may come under pressure as inflation rises and discretionary spend decreases. Whereas a textile company with focus on exports are the ones which continue to do well even at that time. But the issue with export focussed companies would be that their margins would never see any major
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