Textile sector stocks: These shares look bright as cotton prices rally!
The cotton prices are seen rallying in the commodity markets. The cotton prices have jumped over 23 per cent in less than a month.
The cotton prices are seen rallying in the commodity markets. The cotton prices have jumped over 23 per cent in less than a month.
Such a surge in cotton prices may not be good news for textile stocks; however, it can turn out to be positive for a bunch of companies.
Nahar Spinning Mills is one such beneficiary of rising cotton prices. The stock soared more than 15 per cent during Thursday’s trading session on an intraday basis.
Another little-known stock that is catching investors’ attention, owing to firm cotton prices, is Sangam India. It is a low PE stock that gained over 15 per cent in the past five trading sessions and has more than doubled in one year. Sangam India has a 25 per cent market share of dyed poly yarns in India.
RSWM Ltd and DCM Nouvelle are some of the other textile sector stocks that are seen gaining ground on a weak day.
There is a severe draught-like situation in Texas in the USA, which is the largest exporter of cotton. One can expect cotton prices to remain firm in the coming month.
One should keep these trending textile stocks namely, RSWM, DCM Nouvelle, Vardhman Textiles, Nahar Spinning Mills & Sangam India, on their watchlist.