Nuvama initiates coverage on KPR Mill and 2 other textile stocks, sees up to 35% upside. Here's why
Nuvama Institutional Equities has initiated coverage on three key Indian textile players, KPR Mill, Indo Count Industries, and Sanathan Textiles, citing the ongoing shift in
Nuvama Institutional Equities has initiated coverage on three key Indian textile players, KPR Mill, Indo Count Industries, and Sanathan Textiles, citing the ongoing shift in global sourcing away from China. The brokerage has assigned 'Buy' ratings to all three stocks, with upside potential of up to 35%.According to Nuvama's thematic report titled ‘Textiles – The Loom Turns Toward India’, the brokerage highlighted that the global textile market, which is currently valued at around $1.6 trillion, is witnessing its largest sourcing shift in two decades. With China's share of US apparel imports having nearly halved over the past decade, alternative manufacturing hubs like India, Vietnam, and Bangladesh are competing for the surrendered market share.Nuvama has issued ‘Buy’ calls on shares of KPR Mill, Indo Count Industries, and Sanathan Textiles, backing their aggressive capacity expansion plans and integrated business models:Nuvama on KPR Mill share priceAs India's largest listed garment manufacturer with an annual capacity of 204 million pieces, KPR Mill is fully integrated from cotton yarn to garmenting.
Nuvama views it as a direct play on global garmenting tailwinds, having consistently maintained 88–98% utilisation levels through its expansion phases. It has fixed a target price of Rs 1,276 apiece for the stock, implying an upside potential of 21.5% over the stock’s previous closing price.Nuvama on Indo Count Industries share priceAs the world’s largest bed-linen manufacturer by capacity, Indo Count is pivoting from commodity bed linen toward high-margin, value-added segments such as branded and utility bedding, bolstered by its US manufacturing footprint. Nuvama has a target price of Rs 541 per share, implying nearly 35% upside from the stock’s previous closing price.Nuvama on Sanathan Textiles share priceA value-added polyester yarn maker, Sanathan provides a pure-play expression of the global shift toward Man-Made Fibre (MMF).
Backed by Quality Control Orders (QCO) and anti-dumping duties on Chinese imports, Nuvama projects the company’s volume to compound at 23%.The brokerage has a target price of Rs 585 per share, implying more than 23% upside from the stock’s previous closing price.Also read | AI bubble gone bust? Once a billionaire, how AI investor Leopold Aschenbrenner lost most of his hedge fund’s fortune in daysWhat lies ahead?Nuvama highlights that the structural opportunity for Indian textile exporters is driven by supply-side realignment rather than rapid demand acceleration, as global trade remains broadly flat.Key tailwinds supporting Indian exporters include tariff parity and FTA access, inventory normalisation and government policy alignment.Nuvama, in its report, added that while yarn spinning is capital-intensive and subject to raw material cycles, garment manufacturing and specialised textiles have better asset turnover and higher Return on Capital Employed (ROCE).
The BriefWire