How has the performance of textile companies been recently?
Textile companies did much better in the last two years, with many of them undertaking massive debt restructuring. Spinning companies had a good year, thanks to rising yarn prices and steady demand for yarn. Players in synthetics stood to gain from rising cotton prices. And garment manufacturers benefited from good domestic demand. However, exports took a hit because of the appreciating rupee. What kind of textile stocks should an investor consider? The following points can help an investor narrow down his investment alternatives: Garment exporters are likely to be the main beneficiaries. A good presence in the garment sector is a plus point Players with integrated facilities would have an edge over the others. Do not ignore smaller companies. A leadership position in a niche segment would be in their favour. Those who have a long-standing relationship with international players have an edge. Which companies are likely to gain post 2005? Companies with integrated capacities, such as Ar
