The Union Minister of Textiles and Information and Broadcasting who is on a two-day tour of Amethi, inspected the SAIL unit this evening.
The textile minister asserted that the country's man-made fibre sector can soon look forward to "good news" as an inter- ministerial group (IMG)has been formed to suggest measures to maximise its potential. However, she did not elaborate on the details.
While Garware-Wall Ropes appears to be well-positioned to innovate its product offerings, Sarla Performance Fibers is yet to make a mark given its growth potential. Nonetheless, both stocks appear to be reasonably valued for now.
"There is ample cotton growing in northern Maharashtra and there is no value addition. We are planning to set up nine textile parks there," said Subhash Rajaram Desai, industries minister of Maharashtra.
At 18.4x FY19 projected earnings, the company’s fundamentals definitely warrant attention for accumulation.
We expect SPAL’s FY18 numbers to remain fairly flat, since most of the company’s IPO funds will be locked in manufacturing upgradation processes till the end of the year. Repayment of debt during the fiscal, however, will strengthen the bottom-line, albeit marginally.
The stock, at 8.3x FY19 projected earnings, seems reasonably valued for accumulation.
JM Financial has come out with its sector report on Textile dated August 18, 2017. Market share gains a huge relief amid currency/regulatory woes
At 9x FY19 projected earnings, the stock’s valuations seem reasonable for accumulation from a long-term perspective.
All of them are in the non-small scale industry. At the end of June, 682 textile mills were closed in the country, she said during the Question Hour. Of them, 232 mills were in Tamil Nadu while 85 were in Maharashtra and 60 in Uttar Pradesh.
The degree of operating leverage will chart the course for the company's financials as the year progresses.
The GST Council, headed by Finance Minister Arun Jaitley comprising representatives from all states, last week decided to tax all job works in the textile sector at 5 per cent.
The company's latest announcement of foraying into textiles should not be taken lightly by its to-be peers.
In a written reply to Lok Sabha, Minister of State for Textiles Ajay Tamta said during the first two months of current fiscal, the sector received USD 21.41 million foreign inflows.
GST regularisation and festive season sales pick-up will lead to a marked and appreciable recovery in India's consumer discretionary space in the second half of FY18 as opposed to a comparatively weaker first half.
While the company's branded textile, shirting, and garmenting segments seem to be on the right track except for a few blips, a significant improvement in the branded apparel space is needed for better earnings visibility.
"The overall export of cotton textiles has declined by 10 per cent over the past three years," Minister of State for Textiles Ajay Tamta said in a written reply to the Rajya Sabha.
Volume-driven sales growth, cost savings through backward integration, emphasis on premium products, growing denim demand, and GST make Nandan Denim a force to reckon with.
The decision was taken during a meeting of traders associated with three major textile markets in the city, including Maskati Cloth Market Association, New Cloth Market and Panchkuva Cloth Market, a release by these associations said.
Continuing their strike which is underway since the beginning of this month, textile traders in Surat today organised a silent march to protest five per cent Goods and Services Tax (GST)
Enhancing digital and infrastructure connectivity with ASEAN countries is a major priority for India, she added. Irani was addressing the ‘Conference on ASEAN India Cooperation’ on the third day of the ongoing Textiles India 2017 Summit at Gandhinagar.
Representatives of Telangana State Federation of Textile Associations, and cloth merchants associations submitted memorandums to the minister against the imposition of the GST on textiles and sought his intervention to urge the Centre to exempt the textiles industry from the GST.
The Goods and Services Tax (GST) framework, which came into effect from July 1, provides for certain input tax credit only on business class tickets and there is no such provision on economy class fares.
Though there is a sense of confusion over the GST in Asia’s largest wholesale vegetable market, business was more or less usual, while Chandni Chowk sported a deserted look amid a bandh call to protest against GST.
"Textile has been placed in the slab of 5 per cent under the GST. Presently, there is an embedded tax of central excise duties of 3.38 per cent and 2.8 per cent of VAT on cotton yarn," he said.