Antique spots a turnaround thread in textiles, kicks off coverage on 3 stocks with buy call on 2 – News Air Insight

Antique Stock Broking sees India’s textile industry on the cusp of revival, betting that policy support, easing raw-material pressures and a shift toward man-made fibres could weave a fresh growth cycle for the sector. The brokerage has initiated coverage on three companies, placing buy calls on Nitin Spinners and Sanathan Textiles, and a hold on Vardhman Textiles, as it expects near-term tariff pressure to fade.

The brokerage said India’s textile and apparel industry, which contributes around 2% to GDP and 10% to exports, is poised for recovery once the impact of higher U.S. tariffs eases.

Antique said government initiatives such as the Production Linked Incentive (PLI) scheme, PM MITRA parks and the acceleration of free trade talks with the U.K. and EFTA bloc are set to improve competitiveness and scale. It added that optimism remains for the rollback of the 25% penal portion of the 50% U.S. tariff by fiscal year-end.

Nitin Spinners

Antique called Nitin Spinners “a structurally strong textile player with a proven track record of execution and growth,” highlighting its 19% revenue CAGR over FY14–25. The company’s Rs 1,120 crore capacity expansion, focused on value-added fabric, is expected to lift margins and drive 13% CAGR in EBITDA through FY28.With just 2–3% of its revenue directly exposed to the U.S., Nitin Spinners is minimally affected by tariffs, the brokerage said, assigning a buy rating and a target price of Rs 420, valuing it at 10 times estimated first-half FY28 earnings.

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Sanathan Textiles

Sanathan Textiles is “strategically positioned to benefit from structural growth in man-made fibre consumption and rising domestic demand,” Antique said. With 96% of its revenue derived from India, it remains insulated from U.S. trade headwinds.The brokerage expects revenue and earnings to grow at 34% and 40% CAGR, respectively, between FY25 and FY28, and set a buy rating with a target price of Rs 584, based on 12 times 1HFY28 earnings.

Vardhman Textiles

For Vardhman Textiles, one of India’s largest integrated spinners, Antique initiated with a hold rating and a target price of Rs 399. The brokerage said while the company’s long-term fundamentals remain strong, “current valuations largely factor in the positives,” limiting near-term upside.

Sector view

Antique said structural tailwinds are likely to outweigh near-term headwinds, with domestic demand and policy support driving the next growth phase. “We remain structurally positive on the MMF ecosystem and expect healthy growth in the coming years,” it said, adding that easing cotton prices and ongoing trade negotiations could further strengthen India’s textile outlook.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)