Tag Textile Industry

Raymond Ltd
Raymond Ltd Plunges to 52-Week Low: Market Challenges & Future Growth Plans

Business and Industry Overview: 

Raymond Ltd is a well-known Indian company that makes fabrics and clothes. It is the largest fabric maker in the world. The company started in 1925 as a small woolen mill near Mumbai. Later, the Singhania family took over and made it a big brand. Today, it is one of the top textile and fashion companies in India. 

Raymond sells suiting fabrics all over India. It has 30,000 retailers and more than 600 exclusive stores. The company also exports to 55 countries, including the US, Canada, Europe, and Japan. It is India’s biggest woolen fabric maker and controls 60% of the suiting market. Raymond has over 20,000 fabric designs and colors, which is the largest collection by one company. 

Raymond also makes ready-made clothes. It owns brands like Park Avenue, ColorPlus, and Parx. The company is also involved in real estate and engineering. Over the years, it has built a strong name in the market. In 2015, it was named India’s most trusted apparel brand. Even with competition, Raymond remains a leader in the fashion and textile industry. 

The textile and clothing industry is one of the biggest in the world. It includes making fabrics, designing clothes, and selling them. Many people work in this industry, from farmers growing cotton to workers stitching clothes in factories. India is a major producer of textiles like cotton, wool, silk, and synthetic fabrics. In April-June 2025, India exported $2,244 million worth of ready-made clothes. The country’s cotton production is expected to reach 7.2 million tonnes by 2030 due to growing demand. The Indian textile market is growing fast and may reach $350 billion by 2030, with exports of $100 billion. In April-January 2024, India exported $28.72 billion worth of textiles, clothes, and handicrafts. India is a preferred choice for textile production because of low costs and skilled workers. The government is helping the industry by allowing 100% foreign investment and launching schemes like PLI worth $1.44 billion for fabric and technical textiles. A 12% tax rate has been fixed for some fabrics to make business easier. The government is also training workers, with over 1.8 lakh people trained under Samarth. It has approved $7.4 million for research and $109.99 million for upgrading machines in factories. Foreign investment in textiles has reached $4.47 billion since 2000. The government also plans to create 75 textile hubs to boost business. With strong demand, government support, and more investment, India’s textile industry will continue to grow. 

Raymond Ltd is a famous company in India’s clothing and fabric industry. It is the largest fabric maker in the world and has a 60% share in India’s suiting market. It is also India’s biggest woolen fabric producer. The company has a large network of shops. It sells products in over 4,000 multi-brand stores and 637 Raymond showrooms. Its fabrics and clothes are available in 30,000 shops across 400 towns in India. Raymond also sells its products in 55 countries, including the US, Canada, Europe, Japan, and the Middle East. 

Raymond makes different types of products. It sells fabric, ready-made clothes, grooming products, and home textiles. It owns brands like Park Avenue, ColorPlus, and Parx. Raymond competes with Vardhman, Arvind, Siyaram, and Aditya Birla Fashion. But people trust Raymond more because of its good quality, strong brand, and large store network. The company has over 20,000 fabric designs and colors, making it one of the largest collections in the world. 

Raymond has modern factories in Maharashtra and Gujarat. These factories use advanced technology to make high-quality fabrics at lower costs. The company is always creating new styles and fabrics to stay ahead in fashion. In 2015, it was named India’s most trusted clothing brand. 

Raymond is growing fast. It is opening new stores, launching new products, and selling more in foreign markets. More people are buying premium fabrics and clothing, and the government is helping the textile industry grow. With its strong brand, good quality, and large store network, Raymond will continue to grow and remain a top company. 

Latest Stock News: 

Raymond Ltd, a mid-sized textile company, has hit a new 52-week low after five days of losses, even though the textile sector has done slightly better. The stock has dropped a lot in the past year, which raises concerns about the company’s financial health and future growth. But, it still has a strong return on equity. 

Today, 1.34 lakh shares of Raymond traded on the BSE, which is much higher than its usual 25,000 shares over the past two weeks. The total turnover was ₹18.44 crore, and the company’s market value is ₹9,472.78 crore. There were 14,733 buy orders compared to 14,460 sell orders. 

Some analysts think the stock is bullish in the short term, while others believe it has a good risk-reward balance. They think ₹1,220 and ₹1,320 are key support levels, and ₹1,440 to ₹1,600 are resistance levels. If the stock stays above ₹1,440, it might go up to ₹1,600. But, if it drops below ₹1,320, it could weaken the stock’s rise. 

Technically, Raymond’s stock is above its short-term moving averages (5-day, 10-day, 20-day, and 30-day) but below its long-term averages (50-day, 100-day, 150-day, and 200-day). The Relative Strength Index (RSI) is at 56.75, showing it is neither overbought nor oversold. 

The company has a low P/E ratio of 1.04 and a P/B ratio of 2.96, with Earnings Per Share (EPS) of ₹1,368.94. Raymond’s Return on Equity (RoE) is very high at 283.97%. The stock has a beta of 1.3, meaning it can be volatile. 

As of December 2024, the promoters own 48.87% of the company. 

Potentials: 

Raymond Ltd has big plans for the future. The company wants to list its apparel and real estate businesses by 2025. This will help raise the value for people who own shares in the company. Raymond also wants to break up its current structure, which has caused the stock price to be lower than expected. Raymond Lifestyle, which is known for its men’s suits, plans to grow in the Indian market and in the wedding wear market. The company wants to open more stores and grow quickly in these areas. 

Raymond also plans to expand into other countries and increase its number of stores in India. It will keep making new products and better fabric designs to meet what customers want. The company will also open more Raymond showrooms in different cities. 

Raymond wants to sell more online, as more people are shopping on the internet now. The company will work on improving its factories so that it can reduce costs and keep the quality high. Raymond also cares about the environment and will use greener technologies to make the production process cleaner and more eco-friendly. 

Raymond wants to make its supply chain better and take more market share to stay ahead of its competition. The company may also look for new partnerships or buy other companies to keep growing. All these plans should help Raymond become a stronger and more valuable company in the future. 

Analyst Insights: 

  • Market capitalisation: ₹ 9,428 Cr. 
  • Current Price:₹ 1,413  
  • 52-Week High/Low:₹ 2,381 / 1,050 
  • Stock P/E: 29.6 
  • Dividend Yield: 0.71 % 
  • Return on Capital Employed (ROCE): 30.9 % 
  • Return on Equity: 44.5 % 

Raymond Ltd has been doing well financially. Its profit has grown by 57.8% each year over the last 5 years. The company’s return on equity (ROE) is 44.5%, which is a good sign. It has also reduced its debt. In FY23, its revenue went up to ₹8,215 crores, and its profit reached ₹537 crores. The company has also split off its lifestyle business, which could help it grow even more. The stock’s price-to-earnings (PE) ratio of 29.6 is lower compared to other companies in the same sector, which makes it a good investment opportunity. I recommend buying the stock, with a target price of ₹1,650-₹1,700 in the next year. 

Pearl Global Industries Ltd
Pearl Global Industries Faces Trend Reversal Amid Market Volatility, Stock Analysis and Growth Prospects

Business and Industry Overview: 

Pearl Global Industries Ltd. (PGIL) is a big company making famous brands’ clothes. It started in 1987 with Deepak Kumar Seth as its leader. The company designs, creates, and delivers different types of clothes like t-shirts, pants, sweaters, and dresses for men, women, and children. PGIL has 21 factories in India, Indonesia, Bangladesh, and Vietnam and design centres in many countries, including the USA, UK, and Spain. It works with over 82 big brands like GAP, JC Penney, Banana Republic, and Wal-Mart. PGIL earns a lot of money and is growing fast. As of March 13, 2025, its market value is ₹6,907 crore, and its share price is ₹1,502. It makes smart use of money and gives good returns to investors. The company wants to make high-quality clothes using new ideas and technology while protecting the environment. PGIL is successful because it has factories in many countries, makes different types of clothes, has a big team of designers, delivers clothes on time, and follows eco-friendly methods. The company keeps growing and helps fashion brands get the best clothes quickly and responsibly. 

India is one of the biggest makers of clothes and fabrics in the world. It produces cotton, silk, and denim, which are loved in many countries. Indian clothes are sold in big fashion markets. The textile industry is very important for India’s economy.  India also sells a lot of clothes to other countries. It is the sixth-largest seller of textiles in the world. The USA, UK, UAE, and Germany buy a lot of Indian fabrics. In 2023–24, India earned billions of dollars from selling textiles. The government wants to sell even more and is making trade deals with different countries. 

In 2024, India held a big event called Bharat Tex in New Delhi. Many famous brands and buyers from different countries came to see Indian textiles. This event helped Indian businesses make deals and increase sales. 

An organisation called the Apparel Export Promotion Council (AEPC) helps businesses sell Indian clothes in other countries. The Indian textile industry is growing fast. With government support, better technology, and high demand, India will continue to be a top country for making and selling clothes. 

Pearl Global Industries Ltd. makes and sells clothes to big fashion brands all over the world. It has factories in India, Bangladesh, Vietnam, and Indonesia. This helps the company make clothes faster and at lower costs. By having factories in different countries, it can deliver orders on time and serve many customers. 

Latest Stock News: 

Pearl Global Industries’ stock reached a 52-week high of ₹1,360.75 per share, showing a 109.80% rise in the past year, much higher than the Sensex. However, on March 13, 2025, the stock fell sharply after a short period of gains. Despite this drop, the company has performed well over the last three years. The broader market also faced a decline on the same day. The company earns 60% of its revenue from the US, followed by Spain, the UK, Japan, and Australia. Even with US President Donald Trump’s plan for new tariffs, Pearl Global is not worried. Managing Director Pallab Banerjee assured that the company has strategies to manage risks and continue growing. 

Potentials: 

Pearl Global Industries wants to expand its business and sell clothes in more countries. It plans to work with big brands in the US, Europe, and other important markets. The company will increase production by using better machines and advanced technology. This will help make clothes faster, better, and at lower costs. Pearl Global also focuses on the environment and will use eco-friendly materials and safe manufacturing methods. It wants to reduce waste and save energy in its factories. The company will create a wider range of clothes to match new fashion trends and customer needs. It also plans to improve online sales and reach more customers through digital platforms. By doing all this, Pearl Global aims to grow, compete with other companies, and stay successful for many years. 

Analyst Insights: 

  • Market capitalisation: ₹ 6,274 Cr. 
  • Current Price:₹ 1,366 
  • 52-Week High/Low: ₹ 1,718 / 524 
  • Stock P/E: 29.3 
  • Dividend Yield: 0.64 % 
  • Return on Capital Employed (ROCE): 21.4 % 
  • Return on Equity: 21.9 % 

Pearl Global Industries Ltd has grown fast in the last three years, with sales rising 32% yearly and profit jumping 172% yearly. The company makes more money on each sale now, with profit margins improving from 6% to 9%. It also collects payments faster, reducing its waiting time from 58 days to 41 days. Its latest profit growth of 43% is better than that of competitors like K P R Mill (8.12%) and Vedant Fashions (0.17%). The stock has fallen 10.62% recently, making it a good time to buy. However, the high P/E ratio (29.3) and promoters selling some shares raise concerns. Investors should buy this stock on a dip.  

Dhanlaxmi Fabrics Ltd
Dhanlaxmi Fabrics Ltd: December 2024 Net Sales Down 47.65% YoY

Business and Industry Overview: 

Dhanlaxmi Fabrics Ltd., established in 1992, is a textile company that manufactures and processes high-quality fabrics for garment makers and exporters. It has a processing unit in Dombivli, Maharashtra, for bleaching, dyeing, printing, and finishing fabrics, along with a weaving unit in Ichalkaranji with 32 Sulzer Looms producing cotton, blended, and Lycra fabrics. The company also has a yarn-dying facility to ensure consistent colour quality. Apart from textiles, it has a 1.25 MW wind turbine in Dhule, Maharashtra, to generate clean energy. To maintain high standards, it has an in-house lab for quality control and follows international safety and environmental regulations. Its clients include well-known brands like Choudhary Garments, Sonal Garments, and Renfro India. With a strong presence in both Indian and international markets, Dhanlaxmi Fabrics Ltd. plays a key role in the textile industry. 

India is the 3rd largest exporter of textiles, and it is expected to grow at a 10% CAGR and reach 30 million dollars by 2030. The textile industry is a major factor in the growth of our GDP & is expected to contribute 13 percent of the total GDP production. In 2022–23, India produced around 21.5 million metric tonnes of fabric and 585 million kg of yarn. With Gen Z coming up, there is a high demand for fast fashion, and the textile industry is managing to meet the demand. There are many players in this industry, and India can be self-sufficient and has managed to export to the world as well. In FY 24, the total export of textiles was US$ 35.9 billion. It has also helped India create employment in the unorganised sector. While Bangladesh & China were considered to be very attractive options for the fashion brand because of the low cost of labour and favourable government support, the recent geo-tensions within this country have developed a requirement for the fashion brands to look for alternatives. Hence, India now becomes a very attractive option for them. Even the government had allowed 100% FDI in this sector. Dhanlaxmi Fabrics has a good market share in the industry with a Rs. 50 crore market cap, making it the 8th largest company in terms of market cap.

Latest Stock News: 

Financially, the stock is currently trading at₹57.9, down 8.08% on March 7, with a market cap of₹49.7 Cr and a book value of₹55.2. While the company has reduced debt and is almost debt-free, it has a low interest coverage ratio, poor sales growth (-24.5% over five years), and a low return on equity (-4.13% over three years). Peer comparison shows that Dhanlaxmi has a significantly lower market cap and profitability than its competitors. Quarterly results indicate declining sales and operating profits, with the company reporting negative net profits in recent quarters. Over the past five years, sales have dropped by 25%, and its return on equity has been negative. Given these factors—weak financials, declining profitability, and poor return ratios—the stock does not appear to be a strong buy candidate, and investors should exercise caution before investing.  

On 8 February 2025, the board approved the sell-off of the entire shareholding of DFC Privated Ltd, which was a wholly owned subsidiary of the company. 

Potentials:

Dhanlaxmi Fabrics Ltd. has new plans to improve its business. 

Real Estate: The company will use its old textile unit in Dombivli for real estate projects. It plans to build shops and offices and earn money by renting them. This will help improve its financial condition. 

Weaving Business: The weaving unit in Kolhapur is working well. It has 36 modern machines and makes 5 million meters of fabric every year. The company wants to sell more fabric directly to increase earnings in 2024-25.

Analyst Insights: 

  • Market capitalisation: ₹ 49.7 Cr. 
  • Current Price: ₹ 57.9 
  • 52-Week High/Low: ₹ 80.0 / 50.6 
  • P/E Ratio: -20.18 
  • Dividend Yield: 0.00 % 
  • Return on Capital Employed (ROCE): -12.2 % 
  • Return on Equity (ROE): -14.6 % 

Dhanlaxmi Fabrics Ltd. has consistently faced financial distress in the past 2 years. They have a negative operating profit in FY24, and it is focusing on their nonoperating business, which is real estate. Their EPS also gave a negative return to the shareholders of -9.00. Despite being debt-free, it is performing poorly and is shifting its focus from its main business. This is making investors nervous about the management’s decision and is also the main reason why the stock is trading near its 52-week low. Investors are advised to exit the stock and reallocate their funds to a better-performing stock in the textile industry. 

Grasim Industries
Grasim Industries Q3 Results: Net Profit Dips 41% to ₹899 Cr, Revenue Grows 9% to ₹34,793 Crore

Grasim Industries Ltd: Overview

Grasim Industries, a major company of Aditya Birla Group, is one of the major diverse groups of India with the presence in many fields including cement, textiles, chemicals and financial services. Established in 1947 and headquarters in Mumbai, Grasim developed into a prominent player in the Indian Industrial Scheme, which has contributed significantly to the country’s infrastructure, manufacturing and consumer sectors. The company works in industries that are important for India’s economic growth, such as cement (through UltraTech cement), Viscose Staple Fiber (VSF), caustic soda and textiles. It is also expanding in new-age businesses such as paint, B2B e-commerce, and advanced material solutions, reflecting its commitment to diversification and innovation. The Indian industrial sector is ready for growth, inspired by an increase in urbanization, investment of growing infrastructure and favorable government policies. The chemical region, where Grasim has a strong leg, is looking after increasing demand due to increase in industries of manufacturing and consumer goods. Similarly, the government continues to benefit from the push for infrastructure including highways, housing and smart cities in the cement sector. With a strong balance sheet and strategic investment in high-development areas, Grasim is well deployed to redeem the emerging opportunities. 

Latest Stock News 

The B2B e-commerce segment of Grasim Industries is increasing in various categories, geography and healthy revenue growth in new customers. The USD is on a trade track to achieve an ambitious revenue target of $ 1 billion by FY 27. The cement division has been reached 171.2 MTPA, including Indian and foreign operations; Ultra-tech cement, recently 14.45 MTPA from India Cements Limited. In the Paints segment, Grasim began commercial production in its Chamrajnagar feature in Nov. 2024, in which Mahad plant will be expected to start operations in Q4 FY25. Clothing Business Revenue D-3% YoY to ₹ 558 Cr. The first phase with a capacity of 55k TPA will require an investment of ₹ 1,350 crore in the next two years. Akshay trade cumulative established capacity increased to 1.2 GW, out of which 37% are with group companies in the cement sector, domestic gray cement reality has declined 9.6% YOY, but 1.4% QOQ improvement has been shown, which has shown which has been shown Who is mount per copy. It has reached ₹ 4,970. As of 31 December, 2024, the company’s total capital expenditure was 9,015 crore, which represented about 90% of the total planned project cost. 

Business Segments 

  • Cement: Grasim near UltraTech Cement, India’s largest cement manufacturer, one of the top global producers. Ultratech has a total capacity of over 132 MTPAs, which have deals in infrastructure and real estate projects across India and abroad. The company operates over 20 integrated cement plants, 26 grinding units and 7 bulk terminals, which ensure a wide distribution network and strong market appearance.  
      
  • Viscose Staple Fiber and Textiles: Grasim is the largest producer in India, a major raw material in the textile industry. The company’s VSF division supplies environmentally friendly, biodegradable fiber to global textile manufacturers, catering for increasing demand for sustainable fashion. Its Leva brand has obtained significant traction between major dresses brands, which offers better comfort and liquidity.  
     
  • Chemical: Grasim is a prominent player in the chemical field of India, which uses special chemicals used in industries such as caustic soda, chlorine derivatives and industries such as textiles, paper, aluminium and pharmaceuticals. The company has a strong market share in the caustic soda segment, with more than 1.3 million TPA production capacity.  
      
  • Paints: Grasim has entered the paints industry with his brand “Birla Opus”, which marks his forest in the competitive Indian decorative paints market. , With an investment of over 10,000 crores, Grasim is setting up several paint manufacturing plants across India, which aims to disrupt the industry with new products and a customer-focused approach. 

Subsidiary Information 

  • UltraTech Cement Limited: UltraTech Cement is the most important subsidiary of Grasim and India’s largest cement manufacturer is with a global appearance in UAE, Bahrain and Sri Lanka. Ultratech continues to lead the permanent construction solution and capacity extension, which ensures long -term market leadership. 
  • Aditya Birla Capital Limited: Aditya Birla Capital Limited (ABCL) is the Financial Services Branch of Grasim, which provides a comprehensive category of financial products including asset management, insurance, loan and money management. With a strong digital appearance and over 30 million customer bases, the ABCL is a major development driver for the group. 
  • Aditya Birla Renewables Limited: Grasim has invested in Aditya Birla Renewables Limited, which focuses on clean energy solutions including solar and wind energy. The company is expanding its renewable energy capacity to support Grasim’s manufacturing units and contribute to India’s clean energy goals.
  • Aditya Birla Chemicals: Grasim’s subsidiary, Aditya Birla is a leader in the special chemistry market, producing chlorine-alkali products, epoxy resins, and advanced materials. The company serves industries such as construction, motor vehicles, and pharmaceuticals, with focus on innovation and stability.   
  • Aditya Birla Clothes: Grasim’s textile division produces high-quality fibers and yarn products used in domestic and global markets through Aditya Birla textiles. With the commitment of permanent production, the company plays an important role in the textile sector led by Grasim. 

Q3 FY25 Earnings 

  • Revenue of ₹ 34,793 crore in Q3 FY25 up by 8.9% YoY from ₹ 31,965 crore in Q3 FY24. 
  • EBITDA of ₹ 6,796 crore in this quarter at a margin of 20% compared to 22% in Q3 FY24. 
  • Profit of ₹ 1,844 crore in this quarter compared to a ₹ 2,603 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 31965 34793 117627 130978 
Expenses 25073 27997 96038 103783 
EBITDA 6893 6796 21589 27195 
OPM 22% 20% 18% 21% 
Other Income 256 379 3733 783 
Net Profit 2603 1844 11078 9926 
NPM 8.1% 5.3% 9.4% 7.6% 
EPS 22.3 13.7 100.3 85.4