InvestorQ : Why did textile stocks like Vardhman Textiles, Siyaram and RSWM rally so rapidly in the pervious week? What is the story?
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Why did textile stocks like Vardhman Textiles, Siyaram and RSWM rally so rapidly in the pervious week? What is the story?

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Riya Dwivedi answered.
2 weeks ago
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In the last few weeks, most textiles are in demand on hopes of an improved performance and consumption book. Many of them also hit 52-week highs. The last Union Budget. Had given the ailing textile sector a new lease of life with the setting up of mega textile parks, increasing duties on import of textile products and rationalising custom rates on imports of raw materials. The budget had also permitted 100% FDI via automatic route.

The global apparel market which shrank by 22% last year is expected to get back to pre-COVID levels over next 2 years giving companies in India a huge window of opportunity. For example, Siyaram Silk Mills, has re-engineered its cost structure, cutting overheads including marketing spends. It also reported better ROCE at 17%. Vardhman has seen sustained improvement in yarn spreads and it has a very strong balance sheet. This fuelled the rally.

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