Latest news with #KitexGarments
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.
Business Mayor
19-05-2025
- Business
- Business Mayor
Textile stocks rally up to 10% as Bangladesh port curbs likely to generate Rs 1k cr biz for domestic firms
Textile stocks like Siyaram Silk, Kitex Garments and Raymond, among others, shot up to 10 per cent on the BSE today after reports indicate that India's ban on Bangladesh imports through land ports could bring in an additional business of more than Rs 1,000 crore for the domestic textile sector. The shares of Siyaram Silk Mills rose the highest by 10 per cent to an intraday high of Rs 797.35, followed by the shares of Faze Three, which surged by 6.8 per cent to Rs 667. This was further followed by Vardhman Textiles and Redtape shares, which increased by 6 per cent each in the intraday session. Meanwhile, the shares of Kitex Garments and Raymonds hit their 5 per cent upper circuit in intraday trade. The surge in the stocks came after industry experts said that the curb may bring in more business for the domestic players, however, its should be noted that certain branded garments may also see some supply issues in the winter season, which could raise prices of items like t-shirts and denims by 2-3 per cent . 'We were importing garments worth Rs 6,000 crore annually from Bangladesh. We can now expect imports worth Rs 1,000-2,000 crore to be replaced with Indian manufacturing,' said Sanjay K Jain, chairman of National Textile Committee, Indian Chamber of Commerce (ICC), according to previous ET reports. Indian firms have been sourcing woven and knitted apparel from Bangladesh, leveraging the zero-duty benefit. The Directorate General of Foreign Trade (DGFT) issued a notification on Saturday banning the import of garments and several other products from Bangladesh through land routes, while permitting shipments via Kolkata and Nhava Sheva ports. Local industries had been pushing for such restrictions, raising concerns over the surge in textile imports from Bangladesh, driven by zero import duty. The move is also aimed at curbing the indirect import of Chinese fabric, which otherwise attracts a 20 per cent import duty. Trade and industry stakeholders believe that Bangladesh stands to lose more than India due to the revised import policy. In addition to this, the Free Trade Agreement (FTA) between India and the United Kingdom, finalised, is also poised to significantly boost India's textile exports to the UK, further enhancing the prospects of the industry. 'The agreement eliminates tariffs on 99 per cent of Indian goods, including apparel and home textiles, removing the current 8-12 per cent duty and placing Indian exporters on par with competitors like Bangladesh, Vietnam, and Pakistan. China leads UK textile imports (25 per cent share), followed by Bangladesh (22 per cent ), Turkey (8 per cent ), and Pakistan (6.8 per cent ). The FTA will enhance India's competitiveness in this market,' noted a report by ICRA. 'India's apparel and home textiles trade with the UK is projected to double in the next 5-6 years, with export volumes expected to grow at a compounded annual rate of 13 per cent ,' the report added. Read More F.P. Journe Watches: In Pursuit of Precision And Perfection India's textile exports are anticipated to rise from 7-8 per cent to 11-13 per cent by CY2027, a growth which will be supported by incremental capacity additions in the garmenting segment, creating employment opportunities and improving earnings for exporters.
Time of India
19-05-2025
- Business
- Time of India
Textile stocks rally up to 10% as Bangladesh port curbs likely to generate Rs 1k cr biz for domestic firms
Textile stocks like Siyaram Silk , Kitex Garments and Raymond , among others, shot up to 10 per cent on the BSE today after reports indicate that India's ban on Bangladesh imports through land ports could bring in an additional business of more than Rs 1,000 crore for the domestic textile sector. The shares of Siyaram Silk Mills rose the highest by 10 per cent to an intraday high of Rs 797.35, followed by the shares of Faze Three, which surged by 6.8 per cent to Rs 667. This was further followed by Vardhman Textiles and Redtape shares, which increased by 6 per cent each in the intraday session. Meanwhile, the shares of Kitex Garments and Raymonds hit their 5 per cent upper circuit in intraday trade. The surge in the stocks came after industry experts said that the curb may bring in more business for the domestic players, however, its should be noted that certain branded garments may also see some supply issues in the winter season, which could raise prices of items like t-shirts and denims by 2-3 per cent . 'We were importing garments worth Rs 6,000 crore annually from Bangladesh. We can now expect imports worth Rs 1,000-2,000 crore to be replaced with Indian manufacturing,' said Sanjay K Jain, chairman of National Textile Committee, Indian Chamber of Commerce (ICC), according to previous ET reports. Indian firms have been sourcing woven and knitted apparel from Bangladesh, leveraging the zero-duty benefit. The Directorate General of Foreign Trade (DGFT) issued a notification on Saturday banning the import of garments and several other products from Bangladesh through land routes, while permitting shipments via Kolkata and Nhava Sheva ports. Local industries had been pushing for such restrictions, raising concerns over the surge in textile imports from Bangladesh, driven by zero import duty. The move is also aimed at curbing the indirect import of Chinese fabric, which otherwise attracts a 20 per cent import duty. Trade and industry stakeholders believe that Bangladesh stands to lose more than India due to the revised import policy. In addition to this, the Free Trade Agreement (FTA) between India and the United Kingdom, finalised, is also poised to significantly boost India's textile exports to the UK, further enhancing the prospects of the industry. 'The agreement eliminates tariffs on 99 per cent of Indian goods, including apparel and home textiles, removing the current 8-12 per cent duty and placing Indian exporters on par with competitors like Bangladesh, Vietnam, and Pakistan. China leads UK textile imports (25 per cent share), followed by Bangladesh (22 per cent ), Turkey (8 per cent ), and Pakistan (6.8 per cent ). The FTA will enhance India's competitiveness in this market,' noted a report by ICRA . 'India's apparel and home textiles trade with the UK is projected to double in the next 5-6 years, with export volumes expected to grow at a compounded annual rate of 13 per cent ,' the report added. India's textile exports are anticipated to rise from 7-8 per cent to 11-13 per cent by CY2027, a growth which will be supported by incremental capacity additions in the garmenting segment, creating employment opportunities and improving earnings for exporters.
Time of India
19-05-2025
- Business
- Time of India
Textile stocks rally up to 10% as Bangladesh port curbs likely to generate Rs 1k cr biz for domestic firms
Textile stocks like Siyaram Silk , Kitex Garments and Raymond , among others, shot up to 10% on the BSE today after reports indicate that India's ban on Bangladesh imports through land ports could bring in an additional business of more than Rs 1,000 crore for the domestic textile sector. The shares of Siyaram Silk Mills rose the highest by 10% to an intraday high of Rs 797.35, followed by the shares of Faze Three, which surged by 6.8% to Rs 667. This was further followed by Vardhman Textiles and Redtape shares, which increased by 6% each in the intraday session. Meanwhile, the shares of Kitex Garments and Raymonds hit their 5% upper circuit in intraday trade. The surge in the stocks came after industry experts said that the curb may bring in more business for the domestic players, however, its should be noted that certain branded garments may also see some supply issues in the winter season, which could raise prices of items like t-shirts and denims by 2-3%. 'We were importing garments worth Rs 6,000 crore annually from Bangladesh. We can now expect imports worth Rs 1,000-2,000 crore to be replaced with Indian manufacturing,' said Sanjay K Jain, chairman of National Textile Committee, Indian Chamber of Commerce (ICC), according to previous ET reports. Also read: Defence stocks detonate in Rs 1.8 lakh crore boom. Is a ceasefire on the charts? Indian firms have been sourcing woven and knitted apparel from Bangladesh, leveraging the zero-duty benefit. The Directorate General of Foreign Trade (DGFT) issued a notification on Saturday banning the import of garments and several other products from Bangladesh through land routes, while permitting shipments via Kolkata and Nhava Sheva ports. Local industries had been pushing for such restrictions, raising concerns over the surge in textile imports from Bangladesh, driven by zero import duty. The move is also aimed at curbing the indirect import of Chinese fabric, which otherwise attracts a 20% import duty. Trade and industry stakeholders believe that Bangladesh stands to lose more than India due to the revised import policy. In addition to this, the Free Trade Agreement (FTA) between India and the United Kingdom, finalised, is also poised to significantly boost India's textile exports to the UK, further enhancing the prospects of the industry. 'The agreement eliminates tariffs on 99% of Indian goods, including apparel and home textiles, removing the current 8-12% duty and placing Indian exporters on par with competitors like Bangladesh, Vietnam, and Pakistan. China leads UK textile imports (25% share), followed by Bangladesh (22%), Turkey (8%), and Pakistan (6.8%). The FTA will enhance India's competitiveness in this market,' noted a report by ICRA . 'India's apparel and home textiles trade with the UK is projected to double in the next 5-6 years, with export volumes expected to grow at a compounded annual rate of 13%,' the report added. India's textile exports are anticipated to rise from 7-8% to 11-13% by CY2027, a growth which will be supported by incremental capacity additions in the garmenting segment, creating employment opportunities and improving earnings for exporters.
