India Textile Sector Q4 Results Preview - Cooling Raw Material Price Pressure To Spur Revival: Systematix

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Research Report.Textile stocks within our coverage may continue to face margin pressure YoY on high-cost inventory and subdued export demand. However, margins could improve QoQ, as cotton prices softened during the quarter. Readymade garment demand in export markets such as the UK and U.S. may stay subdued due to inflationary pressures and high inventory. We expect Vardhman Textiles Ltd.’s yarn segment to post lower YoY and flat QoQ revenue, as cotton yarn prices have begun to cool. Readymade garment players like KPR Mill Ltd. and Gokaldas Exports Ltd. could perform relatively better, as they operate on cost pass through basis for their contracted garments. Cotton prices have cooled from ~Rs 1,00,000/candy to ~Rs 63,000/candy, letting yarn players access to cheaper inventory. We believe readymade garment manufacturers and exporters would be relatively better placed. We remain positive on the sector due to the acceleration in volume shift from China to India and vendor consolidation by global retailers. We expect growth to recover in the H2; any announcement of free-trade agreement during this period could open a huge market for Indian garment exporters..Click on the attachment to read the full report:.Retail Sector Q4 Results Preview - Low Base Effect To Aid Moderate Quarter: ICICI Direct.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

India Textile Sector Q4 Results Preview - Cooling Raw Material Price Pressure To Spur Revival: Systematix

Expect demand to recover for readymade garment.

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