3 Textile Penny Stocks in India to Add to Your Watchlist

Textile stocks have been making headlines this week, with several players from the sector seeing strong upward moves.

As global trade patterns evolve, India is stepping up as a major textile exporter and investors are taking notice.

From rising international orders to government support and shifting supply chains away from countries like Bangladesh and China, a lot is going right for the industry.

While largecap and midcap textile stocks have been leading the rally, the rally has also sparked interest in lower-priced stocks.

Read on...

#1 Trident

First on the list is Trident.

Trident is a Punjab-based company that produces yarn, towels, bedsheets in its textile segment. It also produces paper and chemicals.

It's known for a wide range of products, including bath and bed linen, wheat-straw-based paper, and sulphuric acid, which finds applications in various industries.

Its manufacturing facilities are in Barnala and Dhaula in Punjab, and Budhni in Madhya Pradesh.

Trident's Financial Snapshot (FY21-25)

(Rs m, Consolidated)	FY21	FY22	FY23	FY24	FY25
Revenue	45,306	69,977	63,323	68,088	69,870
Revenue Growth (%)	(-4.2)	54.5	(-9.5)	7.5	2.6
Net Profit	3,044	8,338	4,416	3,500	3,707
Net Profit Margin (%)	6.7	11.9	7	5.1	5.3
Return on Equity (%)	9.1	21.7	10.5	8.1	8
Return on Capital Employed (%)	13.1	29	13.2	11.5	10.8

Source: Equitymaster

The company's sales and net profit have grown at a 5-year CAGR of 8% and 2%, respectively.

Looking ahead, Trident has lined up a Rs 10 billion (bn) capex plan for FY26, with a focus on sustainability, modernisation, and asset upgrades. Around Rs 6-6.5 bn will go into renewable and sustainability projects, while the rest will be used to modernise operations.

The company also has big plans on the branding front. It aims to triple its domestic business by 2027, riding on the back of its home textile brand myTrident, which is now venturing into the luxury space with the launch of 'LUXEHOME by myTrident'.

On the energy front, Trident is working to transition 60% of its Budhni plant's power needs to renewable sources, with more sustainability upgrades in the pipeline.

#2 Jindal Worldwide

Next on the list is Jindal Worldwide.

Jindal Worldwide Ltd (JWL) was established in 1986. It's a prominent Indian textile manufacturer based in Ahmedabad that specialises in denim, premium shirting, and yarn dyeing.

It has a manufacturing capacity of 140 m meters of denim annually. The company integrates advanced technology in its production processes.

The company operates multiple divisions, which include Jindal Denims and Jindal Fabric, catering to both domestic and international markets.

Recently, JWL has diversified into the electric vehicle sector through its subsidiary, Earth Energy.

Jindal Worldwide Financial Snapshot (FY21-25)

(Rs m, Consolidated)	FY21	FY22	FY23	FY24	FY25
Revenue	16,996	25,592	20,700	18,141	22,881
Revenue Growth (%)	-	50.6	(-19.1)	(-12.4)	26.1
Net Profit	442	1,092	1,157	756	759
Net Profit Margin (%)	2.6	4.3	5.6	4.2	3.3
Return on Equity (%)	10.5	20.4	17.8	10.5	9.6
Return on Capital Employed (%)	21	29.8	22.2	16.4	17.2

Source: Equitymaster

The company's sales and net profit have grown at a 5-year CAGR of 1% and 22%, respectively.

Going forward, Jindal Worldwide has said it's planning to scale up its dealership network to 100 by next year.

#3 Filatex India

Next on the list is Filatex India.

The company is engaged in the manufacturing and trading of synthetic yarn and textiles. Specifically, it manufactures polyester and polypropylene multifilament yarn and polyester chips.

It's product offerings include a complete range of filament, be it POY, DTY or FDY in semi-dull, bright and colours of different shades, covering a wide range of coarse and fine denier.

The company has two manufacturing facilities at Dadra & Nagar Haveli and Dahej, equipped with modern machines from Germany.

Filatex India's Financial Snapshot (FY21-25)

(Rs m, Consolidated)	FY21	FY22	FY23	FY24	FY25
Revenue	22,272	38,281	43,039	42,859	42,522
Revenue Growth (%)	(-20)	71.9	12.4	(-0.4)	(-0.7)
Net Profit	1,658	3,027	899	1,107	1,346
Net Profit Margin (%)	7.4	7.9	2.1	2.6	3.2
Return on Equity (%)	21.8	27.9	8.2	9.2	10.1
Return on Capital Employed (%)	23	35.6	13.5	12.8	14.3

Source: Equitymaster

The company's sales and net profit have grown at a 5-year CAGR of 9% and 2%, respectively.

Going forward, the company plans to increase the production of POY, FDY and DTY, the three major yarn types used in the textile industry at Dahej.

The expansion, cleared by the board in January 2025, involves a Rs 1.6 bn investment and is expected to be up and running by June 2026.

Conclusion

India's textile story is shaping up to be quite strong. According to IBEF, the domestic textiles and apparel market is projected to grow at 10% annually, reaching US$ 350 bn by 2030.

Export potential is rising as well, with expectations of hitting US$ 100 bn, supported by 100% FDI under the automatic route.

Add to that the surge in online shopping from tier 2 and tier 3 cities, and the demand for stylish, ready-to-wear clothing is only getting stronger.

In this backdrop, select textile penny stocks could offer interesting opportunities for long-term investors-especially those with improving fundamentals, expanding capacities, or strong positioning in niche categories.

That said, as with all penny stocks, caution is key. Focus on companies with a clear growth strategy, improving financials, and management credibility before taking the plunge.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...