Latest news with #GeneralizedSchemeofPreferences
Mint
26-05-2025
- Business
- Mint
Kitex Garments: This small-cap textile stock turns ₹1 lakh into ₹4.35 lakh in just one year. Do you hold it?
Multibagger small-cap stock: In the fast-paced world of investing, finding a multibagger stock that delivers extraordinary returns within a short period is the dream of every investor. This dream turned into reality for investors in Kitex Garments, as the company's shares delivered a phenomenal return in a very short span of time. The company's shares, which were trading at ₹ 69 apiece in June 2024, have surged by over 334% to reach the current value of ₹ 300. This rally was exceptional, especially considering the intense selling pressure across the Indian stock market during the second half of 2024. Yet, the stock weathered the storm and delivered an impressive 219% return in H1CY25. If an investor had invested ₹ 1 lakh during that period and held the position to date, the investment would have grown to ₹ 4.35 lakh — a clear testament to the wealth creation potential in the Indian stock market. The sustained rally has also propelled the stock to hit a fresh all-time high of ₹ 324.40 apiece in the previous trading session. Notably, textile stocks have attracted investor attention this month following the signing of a landmark Free Trade Agreement (FTA) between Britain and India, which analysts expect will benefit Indian textile exports. Under the FTA, 99% of Indian exports — including textiles — will benefit from zero duty. India already enjoys advantages such as low labor costs and an abundant cotton supply, which are expected to benefit domestic textile producers in the long run. The FTA holds enormous potential to enhance the competitiveness of the Indian textile industry in the UK market, where competing countries like Pakistan, Bangladesh, and Sri Lanka currently enjoy duty-free access under the UK's Generalized Scheme of Preferences (GSP). Kitex Garments is a leading Indian apparel manufacturer and exporter of knitted garments for infants and kids. Kitex Apparel Parks Limited (KAPL), a wholly owned subsidiary of Kitex Garments Ltd, is spearheading a major expansion with a total planned capital investment of ₹ 3,550 crore across two phases — Warangal and Hyderabad. Of this, ₹ 1,550 crore has already been invested. At full production, KAPL aims to generate ₹ 5,000 crore in revenue. The Warangal unit is set to begin operations by April 2025, followed by the Hyderabad unit in December 2026. Looking at the company's financials, it company reported a net profit of ₹ 41 crore in Q3FY25, a 105% jump compared to ₹ 20 crore in the same quarter the previous year and up from ₹ 37 crore in the September-ending quarter. Revenue from operations during the reporting quarter rose to ₹ 276 crore, compared to ₹ 173 crore in Q3FY24. Operating profit also surged by 54.3% year-on-year to ₹ 54 crore. However, the EBITDA margin remained flat at 20%. India stands to significantly increase its global market share in the textile and apparel sector due to a combination of manufacturing strength, market positioning, and geopolitical advantages. Key growth drivers include the new US tariff structure, which favors Indian exports by imposing higher duties on major competitors. Additionally, the ongoing China+1 policy could divert up to $21 billion worth of business away from China, creating new opportunities for Indian exporters. Political unrest in Bangladesh — a key supplier to Europe and the US — threatens $30 billion worth of exports, which may also be redirected to India. Moreover, as Vietnam and Cambodia shift focus on higher value-added industries, India is well-positioned to capture additional global market share. These trends are further supported by India's strong textile infrastructure and favorable government policies, reinforcing the country's potential to emerge as a leading global hub for textile and apparel manufacturing.
Mint
26-05-2025
- Business
- Mint
Kitex Garments: This small-cap textile stock turns ₹1 lakh into ₹4.35 lakh in just one year. Do you hold it?
Multibagger small-cap stock: In the fast-paced world of investing, finding a multibagger stock that delivers extraordinary returns within a short period is the dream of every investor. This dream turned into reality for investors in Kitex Garments, as the company's shares delivered a phenomenal return in a very short span of time. The company's shares, which were trading at ₹ 69 apiece in July 2024, have surged by over 334% to reach the current value of ₹ 300. This rally was exceptional, especially considering the intense selling pressure across the Indian stock market during the second half of 2024. Yet, the stock weathered the storm and delivered an impressive 219% return in H1CY25. If an investor had invested ₹ 1 lakh during that period and held the position to date, the investment would have grown to ₹ 4.35 lakh — a clear testament to the wealth creation potential in the Indian stock market. The sustained rally has also propelled the stock to hit a fresh all-time high of ₹ 324.40 apiece in the previous trading session. Notably, textile stocks have attracted investor attention this month following the signing of a landmark Free Trade Agreement (FTA) between Britain and India, which analysts expect will benefit Indian textile exports. Under the FTA, 99% of Indian exports — including textiles — will benefit from zero duty. India already enjoys advantages such as low labor costs and an abundant cotton supply, which are expected to benefit domestic textile producers in the long run. The FTA holds enormous potential to enhance the competitiveness of the Indian textile industry in the UK market, where competing countries like Pakistan, Bangladesh, and Sri Lanka currently enjoy duty-free access under the UK's Generalized Scheme of Preferences (GSP). Kitex Garments is a leading Indian apparel manufacturer and exporter of knitted garments for infants and kids. Kitex Apparel Parks Limited (KAPL), a wholly owned subsidiary of Kitex Garments Ltd, is spearheading a major expansion with a total planned capital investment of ₹ 3,550 crore across two phases — Warangal and Hyderabad. Of this, ₹ 1,550 crore has already been invested. At full production, KAPL aims to generate ₹ 5,000 crore in revenue. The Warangal unit is set to begin operations by April 2025, followed by the Hyderabad unit in December 2026. Looking at the company's financials, it company reported a net profit of ₹ 41 crore in Q3FY25, a 105% jump compared to ₹ 20 crore in the same quarter the previous year and up from ₹ 37 crore in the September-ending quarter. Revenue from operations during the reporting quarter rose to ₹ 276 crore, compared to ₹ 173 crore in Q3FY24. Operating profit also surged by 54.3% year-on-year to ₹ 54 crore. However, the EBITDA margin remained flat at 20%. India stands to significantly increase its global market share in the textile and apparel sector due to a combination of manufacturing strength, market positioning, and geopolitical advantages. Key growth drivers include the new US tariff structure, which favors Indian exports by imposing higher duties on major competitors. Additionally, the ongoing China+1 policy could divert up to $21 billion worth of business away from China, creating new opportunities for Indian exporters. Political unrest in Bangladesh — a key supplier to Europe and the US — threatens $30 billion worth of exports, which may also be redirected to India. Moreover, as Vietnam and Cambodia shift focus on higher value-added industries, India is well-positioned to capture additional global market share. These trends are further supported by India's strong textile infrastructure and favorable government policies, reinforcing the country's potential to emerge as a leading global hub for textile and apparel manufacturing. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Mint
07-05-2025
- Business
- Mint
SP Apparels, Welspun Living to Arvind: Why textile stocks surged up to 20% despite India-Pakistan tensions — Explained
Stock market today: While the Indian stock market traded in a narrow range on Wednesday, May 7, amid rising tensions between India and Pakistan, textile stocks were trading in the green. These stocks, which had been buzzing lately, once again caught investors' attention on Wednesday, May 7, as a fresh wave of optimism emerged from India and the United Kingdom officially signing a landmark Free Trade Agreement (FTA). This development lifted market sentiment, with hopes that the Indian textile sector could be one of the major beneficiaries of the pact. Amid this optimism, major textile companies saw their stocks soar in trade, with SP Apparels emerging as the top performer, hitting the 20% upper circuit limit at ₹ 874 apiece. Other textile stocks, such as Gokaldas Exports, Welspun Living, Vardhman Textiles, Nitin Spinners, Arvind, Himatsingka Seide, and Ambika Cotton Mills, surged up to 16% in early trade. The deal between the world's fifth- and sixth-largest economies has been concluded after three years of stop-start negotiations. It aims to increase bilateral trade by £25.5 billion ($34 billion) by 2040 through liberal market access and eased trade restrictions. The FTA holds enormous potential to enhance the competitiveness of the Indian textile industry in the UK market, where competing countries like Pakistan, Bangladesh, and Sri Lanka currently enjoy duty-free access under the UK's Generalized Scheme of Preferences (GSP). Such tariff concessions have not been available to India. Indian textile products such as women's apparel, shirts, trousers, and bed linens, which currently attract a 10–12% import duty in the UK, are expected to benefit under the new agreement. India is ranked among the top textile-exporting countries globally, with a share of approximately 4% of global textiles and apparel exports. The major export destinations for India in this segment are the United States (US), the European Union (EU), and the United Kingdom (UK), accounting for around 53% of total textile and apparel exports in FY 2023–24. Trade between the two nations totaled £42.6 billion in 2024, with India ranked as Britain's 11th-largest trading partner. The UK described the agreement as the 'biggest and most economically significant' bilateral trade deal it has signed since leaving the European Union in 2020. Apart from the UK, India has signed 14 Free Trade Agreements (FTAs), including those with the UAE, Australia, and TEPA with EFTA countries (Switzerland, Iceland, Norway, and Liechtenstein), as well as six Preferential Trade Agreements (PTAs) with various trading partners. The Indian government has been increasing its focus on the textile sector, offering incentives and reforms to strengthen domestic manufacturing. In the Union Budget 2025–2026, the Indian government announced a five-year mission aimed at enhancing the productivity and sustainability of cotton farming. This initiative aligns with the government's integrated 5F vision for the textile sector. Experts believe this strategy will boost farmers' incomes and ensure a steady supply of high-quality cotton, supporting India's traditional textile industry. (With inputs from Reuters, Financial Express) Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Arab News
12-04-2025
- Business
- Arab News
Pakistan says exports to Europe grew by 9.4% during FY25
ISLAMABAD: Pakistan's exports to Europe grew by 9.41 percent during the first eight months of the current fiscal year, state-run media reported on Saturday, attributing the surge to rising demand for the country's textile, garments and its GSP Plus status. The European Union (EU) is Pakistan's second most important trading partner, accounting for over 14 percent of the country's total trade and absorbing 28 percent of Pakistan's total exports as per official data. Pakistani exports to the EU are dominated mostly by textiles and clothes. Pakistan avails the Generalized Scheme of Preferences (GSP)+ status, a special trade arrangement offered by the EU to developing economies in return for their commitment to implement 27 international conventions on human rights, environmental protection and governance. 'The demand for Pakistani products in Europe has seen a significant rise, leading to a 9.4 percent increase in exports due to the efforts of the Special Investment Facilitation Council,' state broadcaster Radio Pakistan said in a report. It was referring to the SIFC, a hybrid civil-military government body formed in 2023 to fast-track decisions related to international investment in Pakistan's vital economic sectors. The SIFC aims to attract investment from Gulf countries, Central Asian states and regional allies in tourism, agriculture, mining and minerals, livestock and other priority sectors. The state media said Pakistan's exports to Western Europe grew by 11.6 percent and while those to Northern Europe saw a 'remarkable' 17.7 percent increase during the first eight months of the current fiscal year. 'The primary reasons behind this growth are Pakistan's GSP+ Status and the rising demand for Pakistani textiles and garments,' it added. The current GSP framework came to an end in December 2023 but Members of EU Parliament (MEPs) voted in October to extend the current rules on the scheme for another four years for developing countries, including Pakistan. Finance Minister Muhammad Aurangzeb has repeatedly stressed the importance of shifting Pakistan's economy from an import-dependent one toward an export-led one, saying that without it sustainable economic growth is difficult to achieve. In recent months, Pakistan has vigorously pursued economic and investment deals with Gulf countries such as Saudi Arabia, the United Arab Emirates and bilateral trade cooperation with Central Asian states, Russia and others.
