Textile shares in focus; Raymond hits 52-week high

Raymond, Alok Textiles, Trident, Aarvee Denims, Maxwell Ind, DCM and Himatsingka Seide were up between 2%-7% on the BSE.

Shares of select textile companies were trading higher by up to 8% on the BSE on expectation of pick- up in sales in coming months in light of good monsoon, 7th pay commission payouts and festive season.

Raymond, Alok Textiles, Himatsingka Seide, Aarvee Denims, Trident, DCM and Maxwell Industries were up between 2%-7% on the BSE, as compared to 0.21% rise in the S&P BSE Sensex at 10:14 am.

Raymond has rallied 9% to Rs 519 on the BSE in intra-day trade on back of five-fold jump in trading volumes. A combined 687,033 shares changed hands on the counter so far against an average sub 500,000 shares that were traded daily in past two weeks on the BSE and NSE.

The stock quoting at its 52-week high and outperformed the market in past one-week by surging 18% against 1% rise in the benchmark index.

Antique Stock Broking maintains ‘buy’ rating on the stock with target price of Rs 605 as the broking firm feels that the company has been aggressive in brand building, renovating old stores and closing down nonprofit stores.

“We feel that the company is on the right track with a clear strategy towards a profitable growth and the necessary steps required for executing the strategy are in place too. With the renewed focus on driving scale, operating efficiency and premiumisation in textile/ apparel/ retail businesses, we expect improvement in profitability of these businesses,” Antique Stock Broking said in a recent report.