Stocks to buy today: Why experts are bullish on these textile stocks -- explained

 

• Stocks to buy: The Indian textile industry is expected to grow at a CAGR of 10 percent from 2019 to 2026

Stocks to Buy Today: After the start of the new year 2023, the stock market is busy speculating which theme is expected to work in 2023 as 2021 and 2022 turned out to be excellent years for commodity, metal and sugar stocks. In Budget 2023, which is round the corner, the market is expecting some booster concessions for various sectors which may augur well for the stocks in that sector.

According to stock market experts, the textile theme is expected to do well in 2023 as there is a strong expectation of some concessions in the budget, which may increase the buying interest in textile stocks. Experts were of the opinion that with the increase in disposable income, the requirement of goods in the Indian textile sector has expanded, resulting in huge demand both locally and internationally. He further said that the Indian textile industry is expected to register 10 per cent CAGR between 2019 and 2026 and advised positional investors to buy Raymond and Aditya Birla Fashion and Retail stocks.

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Speaking on the triggers that will boost textile stocks in 2023, Sandeep Pandey, Business Partner, Emkay Global Financial Services, said, "As a result of the pandemic, the Indian textile industry witnessed a significant downturn; however, as the pandemic subsides, this The Indian textile market was projected to grow and grow to reach $190 billion at a compound annual growth rate (CAGR) of 10 percent between 2019 and 2026. In 2019, the industry contributed 7 percent to the country's gross domestic product (GDP). contributed."

India's textile industry is estimated to be worth over $209 billion by 2029, up from a market value of around $140 billion in 2017. During the last five years, the sector has received FDI and many other investments. ICIL announced $2.6 million investment in May 2021. Under the automated approach, the Government of India has authorized 100 per cent automation.

Sandip Pandey, Former Vice Chairman, HDFC Bank Ltd further said that the year 2021 saw a growth of over fifty per cent in exports of cotton, handloom and yarn goods, indicating an upward trend.