It is a matter of common sense that when eminent stock wizards of the calibre of Billionaire Narayana Murthy, Dolly Khanna, Ashish Kacholia, Anil Kumar Goel, Prof Sanjay Bakshi, Porinju Veliyath etc make a beeline for stocks in a particular sector, we must follow them first and ask questions later.
That is why I diligently rushed out the alert in August 2015 asking “Why Are Ace Investors Aggressively Buying Textile Stocks & Is There Scope For More Gains?”
I also collated the opinion of two eminent experts, Ravish Kumar and Nooresh Merani, to explain what it is about textile stocks that has enamoured the wizards.
Since my report, textile stocks have given humongous gains as I have been diligently reporting from time to time.
Today, all textile shots shot up on news that NAMO is planning some big-bang reforms for the textile sector:
Sources: #Cabinet to consider New National Textile Policy on Wednesday. #ETNOWExclusive
— ET NOW (@ETNOWlive) June 21, 2016
ET referred to “sources” to speculate that (i) New National Textile Policy to incentivise production by MSMEs, will also enable global brands to set up a supply chain and (ii) New National Textile Policy to look at FTAs to ensure competitive advantage, likely to include tax breaks as well.
Other leading journalists also flashed the news:
Cabinet likely to announce major relief to textile sector(bunkar) on wed @DigitalLekhanee @iammanish1212 @RoyLakshman
— Rishikesh Kumar (@rishhikesh) June 21, 2016
This policy aims to give major boost for domestic production and export of textiles. https://t.co/EpU0BhG1nr
— Lakshman Roy (@RoyLakshman) June 21, 2016
Excl: New Textile Policy: Coming Soon. @ShereenBhan speaks to Fmr Textile Secy, Zohra Chatterji here. https://t.co/eHA3TjoNvX
— CNBC-TV18 News (@CNBCTV18News) June 21, 2016
Understandably, the textile stocks were in great demand and notched up handsome gains.
| Stock | CMP (Rs) | % Gain |
| RSWM | 432.40 | 10.18 |
| Sutlej Textiles | 638.40 | 8.49 |
| Kitex Garments | 499.80 | 7.29 |
| Amarjothi | 85.10 | 6.38 |
| Nandan Denim | 149.75 | 5.87 |
| Gokaldas Exports | 116.75 | 5.75 |
| KPR Mills | 952 | 4.56 |
| AYM Syntex | 102.65 | 4.32 |
| Nitin Spinners | 82.80 | 3.82 |
| Ambika Cotton | 829 | 2.05 |
More gains may be in store depending on the precise reforms that NAMO ushers in tomorrow.
It is notable that Dolly Khanna has probably got the highest congregation of textile stocks in her portfolio. She has RSWM, Nandan Denim and Nitin Spinners. Dolly also appears to be a stealth investor in Sutlej Textiles.
| Stock | Holding as of 31.03.2016 | Value of holding (Cr) | YoY gains (%) |
| Nandan Denim | 558,373 | 8.65 | 109 |
| RSWM | 424,220 | 15.61 | 53 |
| Nitin Spinners | 560,176 | 3.53 | 43 |
| 27.79 |
It is worth noting that RSWM is Dolly’s high conviction stock owing to the fact that it is quoting at a low P/E. The Co has recently completed its aggressive expansion plans and has promised to become debt-free by FY19.
A few days ago, I also drew attention to the fact that experts have opined that Nitin Spinners has an upside of more than 100%.
Now, we must take note of a brilliant point made by Varinder Bansal of ET:
LMW is one among the top three players across the world; commanding a 70%
volume market share and 60% value market share in India.— Varinder Bansal (@varinder_bansal) June 21, 2016
This is brilliant thinking by Varinder Bansal because Lakshmi Machine Works is presently languishing though it reported good results. If the textile sector sparkles, it is likely that LMW will do as well!
#Niveza #Review on #Textile #Sector #News ::
The government can announce textiles policy to give a boost to overall exports and job creation. Since it is one of the important sector for job creation and most of the textile products are exported it helps our country to gain on foreign currency hence it is important from both points of view. The companies such as Vardhman Textiles, Indo Count and Welpun india are some of the top companies from the sector and can benefit from such a policy apart from other players.
Source:: Stock Market Tips