Textile gains on high exports

Gazi Towhid Ahmed

 The textile sector gained 1.5 percent to stand at Tk 9,160 crore in market capitalisation yesterday, compared to the previous day, thanks to steady growth in exports last year.
Textile exports rose 5.78 percent year-on-year to $24.6 billion in 2014. The price earnings ratio of the sector stood at 19.4, where the average market PE was 15.51.
The PE ratio is a valuation of a company's current share price compared to its per-share earnings. A lower PE means investment is less risky.
The positive vive in garment exports led investors to inject fresh funds into the sector, said IDLC Investments.
Some fundamentally good stocks from the sector, like Envoy Textiles, Matin Spinning Mills, Saiham Cotton Mills, Saiham Textile Mills, Square Textile and Malek Spinning Mills, have PE ratios ranging between 7-15, which means the share price of the companies are lucrative for further investment, the investment bank said.
Six of the top 10 gaining stocks came from the textile sector yesterday.
Altex Industries, a textiles maker, posted the highest gain of 9.94 percent in terms of price, followed by Dacca Dyeing and Manufacturing Company with 9.81 percent, Mozaffar Hossain Spinning Mills 9.62 percent, Saiham Cotton Mills 9.18 percent, Prime Textile 5.61 percent and Anlima Yarn Dyeing 5.46 percent.