Nuvama Institutional Equities has initiated coverage on three key Indian textile players - KPR Mill, Indo Count Industries, and Sanathan Textiles - with 'Buy' ratings and upside potential of up to 35%. According to Nuvama's thematic report titled 'Textiles – The Loom Turns Toward India', the global textile market, currently valued at around $1.6 trillion, is witnessing its largest sourcing shift in two decades. With China's share of US apparel imports having nearly halved over the past decade, alternative manufacturing hubs like India, Vietnam, and Bangladesh are competing for the surrendered market share.
As India's largest listed garment manufacturer with an annual capacity of 204 million pieces, KPR Mill is fully integrated from cotton yarn to garmenting. Nuvama views it as a direct play on global garmenting tailwinds, having consistently maintained 88–98% utilisation levels through its expansion phases. The brokerage has set a target price of ₹1,276 per share, implying an upside potential of 21.5% over the stock's previous closing price.
As the world's largest bed-linen manufacturer by capacity, Indo Count is pivoting from commodity bed linen toward high-margin, value-added segments such as branded and utility bedding, bolstered by its US manufacturing footprint. Nuvama has assigned a target price of ₹541 per share, implying nearly 35% upside from the stock's previous closing price. This transformation positions the company to capitalize on the global shift toward premium bedding segments.
A value-added polyester yarn maker, Sanathan provides a pure-play expression of the global shift toward Man-Made Fibre (MMF). Backed by Quality Control Orders (QCO) and anti-dumping duties on Chinese imports, Nuvama projects the company's volume to compound at 23%. The brokerage has set a target price of ₹585 per share, implying more than 23% upside from the stock's previous closing price.
Nuvama highlights that the structural opportunity for Indian textile exporters is driven by supply-side realignment rather than rapid demand acceleration, as global trade remains broadly flat. Key tailwinds supporting Indian exporters include tariff parity and FTA access, inventory normalisation and government policy alignment. With trade access, policy incentives, and global buyer behaviour aligning simultaneously for the first time since 2005, Indian textile majors are well-positioned for sustained multi-year growth. The brokerage notes that while yarn spinning is capital-intensive and subject to raw material cycles, garment manufacturing and specialised textiles have better asset turnover and higher Return on Capital Employed (ROCE).
