In CY17, while the benchmark Sensex delivered 27% return, the stock of the country’s third-largest textile company (by market cap), Vardhman Textiles, underperformed — generating only 23% return. Not surprising, given that in the first half of FY18, the company reported 4% YoY growth in topline, while profit plummeted 55% owing to GST-led destocking and high cotton prices.
However, things could start looking up for the company soon. As GST-related weakness moderates, demand is picking up in the domestic market. Exports to a key market such as China are also showing