Time to invest in textile in the bull market

With the rising market where by Nifty advances towards the recent high of high of 8995 on 8th September’16 soon to touch the 9000 mark, it’s time to invest in textile sector.

SymbolLTPJune EPSInstPE RatioDE EquityPledgeEPS GrowthMFReturn from BudgetCENTENKA282.910.311180015.20%36107TRENT215.9712580036.90%3778HIMATSEIDE270.854.69716106.20%2175GANECOS232.431217126-16.30%867KITEX478.854.4442000-53.50%236VTL1010.129.3204101014.70%5835NDL127.553.41010227-3.90%034TRIDENT56.251.636112047.70%830Spal*351.59.6011200.00%0New listing This sector started performing post Budget as:

• 100% FDI is allowed under the automatic route in the textile sector; investment is subject to all applicable regulations and laws.
• Government introduced the scheme for integrated Textile Parks, which will provide world class infrastructure to the sector. Till date 57 textile parks have been started with the investment of Rs. 6000 crs. 25 more textile park to open by 2017.
• Training to be provided to more than 15 lakhs people under integrated Skill Development scheme.

Century Enka is the lowest PE share trading at a PE of 8 in spite the share price has gone up 95% from recent low of 145 in March to 282. What makes it a leader in this sector is that it is a Zero debt company and the earning has been improving every quarter from last 4 quarters. The forward PE of the company is 6.84. Century Enka Limited is a Pune based company. The products manufactured by Century Enka Limited are Polyester Filament Yarn, Nylon Filament Yarn, Polyester POY, Polyester and Nylon Chips of industrial and fabric grade and Nylon Industrial Yarn and Nylon Tyre Cord Fabrics. The company operates in one segment i.e. Synthetic yarn. Centur Enka has 111 institutions invested in this share out of which 36 as Mutual Funds.

Trent is the next best performing share in this sector trading at low PE of 8 and has moved 78% form recent low of 140 in March. Trent Limited is a part of Tata Group retail operations company that owns and manages a number of retail chains in India, such as Westside (lifestyle retail stores), Star Bazaar (a hypermarket chain), Landmark ( a books and music chain), and Fashion Yatra ( a complete familyfashion store ). This share has given correction from recent high of 250 and is trading at 215. Tata Sons will increase its stake in Trent Ltd by acquiring 1.17% to 27.74% as part of restructuring of its investment portfolio. It will buy 3.87 lakh share of Trent from one Af-Taab Investment company.

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