Textile sector seeing a structural turnaround; here's how to play the theme

The stocks in the sector are also ripe for a re-rating as robust export opportunities give strong and sustainable earnings visibility

Shares of textile companies bucked the weak market trend and managed to rally on Thursday as improving exports of cotton and made-up apparel, along with attractive valuation and earnings growth visibility, made analysts bullish on the sector.

Shares of Super Fine Knitters, Super Spinning, and Filatex India rallied up to 10 per cent on Thursday. Those of JCT, Surat Textile, Swasti Vinayaka, KPR Mill, Sumeet Industries, Bhandari Hosiery, Minaxi Textiles, and Bombay Rayon, gained between 4 per cent and 5 per cent, and Gokaldas Exports and Vardhman Textiles also ended in the green.

In comparison, the S&P BSE Sensex fell over 1