Did you know that in India shoes are being sold for as high as ₹ 68 lakhs? That’s right, this amount is enough to buy you a decent flat in a metro city. This is the height that the Indian fashion industry has achieved.
In this article, we will take a look at the Indian fashion and apparel industry and look at top apparel stocks in India.
Overview of clothing industry
The fashion and apparel industry has a very dynamic nature. The trends that are in high demand today can become outdated within a span of months. The fashion and clothing industry faced downturns across the world after the pandemic hit in 2020.
Since 2020, it has regained its lost ground and showed good growth. The Indian textile industry is expected to reach $350 billion by 2030.
The primary drivers of this expansion include rising incomes, relocation to urban areas, and a rising frenzy of fashion and apparel among young people. Along with the local demand, the foreign demand for cheap and good quality Indian apparel products is rising. In the first quarter of the 2025 fiscal, India exported $2.2Bn worth of ready-made garments.
Also read: The Indian fashion industry: A booming sector with huge potential
Top apparel and fashion stocks in India
Here we will take a look at top fashion stocks in India based on their market capitalization as of 2nd December 2024 and compare their financial performance.
Page Industries Ltd: This company owns the exclusive license to manufacture and distribute the Jockey brand in India and eight other countries. Similarly, it owns the license for the Speedo brand in India. With 16 manufacturing units and over 18000 employees, the company has a pan-India presence.
Vedant Fashions Ltd: This company has tapped into the Indian wedding market by selling celebratory and wedding clothes for men and women. Present in 225 locations across India and 12 other countries, the company owns brands like Manyawar, Mohey, Twamev, etc.
Also read: Planning a big fat Indian wedding? Here’s how you will impact the economy
KPR Mills Ltd: This company manufactures fabrics and ready-made garments in its 12 manufacturing plants. The company has also forayed into sugar and renewable energy.
The company has over 30,000 employees and sells apparel products under the Faso brand. The company exports to many countries like the US, Australia, Europe etc.
Gokhaldas Exports Ltd: Gokhaldas is involved in the business of designing and manufacturing garments for men, women, and children. It also manufactures garments for big fashion companies. With more than 40 years of experience, this company has a presence in over 50 countries and owns 30 manufacturing units.
Pearl Global Industries Ltd: Pearl Global manufactures apparel items for all age groups and genders from its 20 manufacturing units. In the first half of the 2025 fiscal the company generated 75% of its revenue from exports. The company has a presence in nine countries.
Financial performance for the aforementioned companies in FY24:
| Fundamental metrics (In ₹ Cr) | Page Industries | Vedant Fashions | KPR Mills | Gokhaldas Exports | Pearl Global |
| Market cap. (2nd Dec, 2024) | 51,154 | 34,930 | 33,669 | 6,738 | 5,746 |
| Sales | 4,582 | 1,368 | 6,060 | 2,379 | 3,436 |
| Expenses | 3,709 | 709 | 4,823 | 2,125 | 3,111 |
| Profit before tax | 756 | 548 | 1,040 | 159 | 192 |
| Net profit | 569 | 414 | 805 | 131 | 169 |
| Total Debt and borrowing | 185 | 444 | 1158 | 805 | 588 |
Key Financial ratios for the aforementioned companies as on December 2, 2024 or as stated otherwise:
| As on Dec 2, 2024 | Page Industries | Vedant Fashions | KPR Mills | Gokhaldas Exports | Pearl Global |
| Current Ratio (FY24) | 1.81 | 4.02 | 5.15 | 2.10 | 1.65 |
| Interest Coverage ratio(FY24) | 20.09 | 11.24 | 17.25 | 3.56 | 3.56 |
| Inventory turnover ratio(FY24) | 1.52 | 2.34 | 2.02 | 2.62 | 3.41 |
| Net Profit Margin (FY24) | 12.42% | 29.28% | 12.97% | 4.7% | 4.86% |
| RoE % (FY24) | 38.35% | 26.68% | 19.49% | 10.27% | 21.90% |
| P/E | 82.83 | 86.27 | 41.71 | 51.68 | 28.70 |
| P/B | 34.30 | 22.79 | 7.21 | 3.39 | 5.42 |
| 1-Year return | 18.14% | 3.05% | 12.45% | 0.57% | 94.99% |
- Indian apparel industry companies can easily handle their debt obligations as suggested by the interest coverage ratio and current ratio.
- A healthy inventory turnover ratio represents that inventory is being sold quickly meaning the companies are understanding the customer needs well.
- High P/E and P/B ratios might suggest some overvaluation for some investors. (subjective as per investor preference)
- A high return on equity (RoE) also indicates that the business can turn equity capital into profits.
Also read: Unlocking financial insights: The power of ratio analysis
Bottomline
Investing in the apparel and fashion industry and clothing stocks in India requires thorough research. This industry is affected by changing trends, supply chain disruptions, international and domestic competition, and economic slowdowns. Whenever a slowdown hits, this is the first industry that takes a plunge as people start saving by cutting on expenses like clothing, luxury, etc.
Investors should carefully study this sector and industry before investing and always remember that past returns do not guarantee future performance.
FAQs
1 – Which is the best apparel company in India for long-term investments?
While investing for the long-term an investor seeks a good record of past financial performance and good future prospects with financial stability. Page industries top the list. It has the highest sales and net profits among all apparel companies as of FY24 . This company has the highest market value of ₹51,154 crores as of 2nd December 2024.
2 – Which is the biggest fashion company in the world?
A company based in France, LVMH, holds the title of the biggest fashion company in the world. This company is involved in selling luxury consumer products ranging from clothes, and perfumes to shoes etc. As of 2nd December 2024, the company has a market value of ₹26.5 trillion.
3 – Which are the biggest five fashion and apparel companies in India?
The biggest companies in terms of market capitalisation as of 2nd Dec 2024 are Page Industries Ltd, Vedant Fashions Ltd, KPR Mills Ltd, Gokhaldas Exports Ltd, and Pearl Global Industries Ltd. These five companies boast the highest sales and net profits among all fashion companies as of the 2024 fiscal.
4 – What is the difference between apparel companies, textile companies, and fashion retailers?
Textile companies produce the cloth, which is the raw material used by apparel companies to make finished garments for consumers. These finished garments are then sold to consumers via the company stores or with the help of established fashion retail outlets.
5 – What risks are faced by apparel companies?
Trend shifts are a frequent occurrence in the fashion business, which is known for its highly dynamic character. Economic slowdowns, competition from unorganized and foreign sectors, and supply chain disruptions all have an effect on this industry.
