Textile stocks: Why Raymond, Raymond Lifestyle, Welspun Living are on investors' radar

Shares of textile firms such as Raymond Ltd, Raymond Lifestyle Ltd, Welspun Living and KPR Mills are buzzing in trade as the Centre may extend the customs duty exemption on raw cotton beyond October 31, potentially until December. The latest policy move is expected to provide some relief to textile manufacturers grappling with elevated input costs and could improve investor sentiment across the sector.

Shares of textile companies, including Arvind Ltd, Raymond, Raymond Lifestyle and Vardhman Textiles, are witnessing mixed movement in the past few sessions after some counters pared their initial gains.

The policy development is likely to keep textile stocks firmly on investors’ radar as the market assesses its potential impact on input costs, margins and the sector’s overall earnings outlook.

Rachit Khandelwal, Head Research & Investor Education at BNK Capital told BTTV that India-UK Free Trade Agreement started and entered into force on July 15, 2026. This July quarter, there will be huge amount of difference in their revenue and margins.

On the outlook of the KPR Mill stock, Khandelwal said that KPR Mill stock can be bought for a target of Rs 1200-1224. If it crosses that level, the stock can hit a target of Rs 1360-1400 with a time span of 1.5 to 2 months.

Meanwhile, global brokerage Jefferies has initiated coverage on Welspun Living with a Buy call and a target price of Rs 260 per share. The brokerage has also initiated coverage on Raymond Lifestyle with a Buy recommendation and a price target of Rs 900 per share.

According to Jefferies, India’s textile industry is entering a structural growth phase, driven by the ongoing shift in global sourcing away from China and improving India’s tariff competitiveness following free trade agreements with the UK and the European Union.

Welspun Living: Global home-textile opportunity

Jefferies views Welspun Living as a strong beneficiary of the expanding global home-textile export opportunity, supported by the company’s established leadership position in the international market.

The brokerage expects Welspun Living’s revenue to grow at a compound annual growth rate (CAGR) of 14% between FY26 and FY29E. A recovery in margins is expected to significantly improve profitability, with EBITDA and profit after tax (PAT) projected to grow at CAGRs of 38% and 71%, respectively, during the same period.

Return on capital employed (ROCE) is also expected to improve by around 13 percentage points to 19%, reflecting the anticipated recovery in operating performance.

Raymond Lifestyle: Attractive risk-reward

For Raymond Lifestyle, Jefferies sees an attractive risk-reward profile, supported by the company’s leadership in branded textiles and the potential for a recovery in its apparel business.

The brokerage expects the company to deliver a 23% CAGR in earnings per share (EPS) over FY26-FY29E. Valuation also remains supportive, with the stock trading at around six times one-year forward EV/EBITDA, which Jefferies considers attractive.

Overall, Jefferies expects the combination of favourable global sourcing trends, improving tariff competitiveness, stronger earnings growth and attractive valuations to support the investment case for both textile stocks.