Most garment and apparel stocks climbed on Wednesday, in line with the domestic benchmarks which settled higher after an eight-day halt. The top three industry-wise gainers on BSE are Rupa & Company, Dollar Industries and Bella Casa Fashion & Retail, surging up to 16 per cent.
Shares of Rupa & Co zoomed 16.04 per cent to settle at Rs 237.95, snapping their four-day fall. On a year-to-date (YTD) basis, the stock has slipped 16.45 per cent. It has declined 46.96 per cent in the past one year.
“Currently, the inner-wear industry is witnessing a structural shift from unorganized to the organized sector. We expect Rupa to benefit from this trend. Consumer demand sentiments remain weak over the short term but long-term trajectory remains strong. Hence, we advise investors to accumulate this business,” Way2Wealth stated in its report.
It mentioned that the financial year 2022-23 (FY23) was almost like a washout year for the company because of the high-cost inventory. The management expects raw material prices should get stabilised and trade should also get better, Way2Wealth said.
Dollar Industries finished 13.32 per cent higher at Rs 358.65, extending its upward trend for the second straight session. The counter fell 16.31 per cent on a YTD basis and lost 32.08 per cent in the past one year.
SMIFS Research has suggested a target price of Rs 508 while assigning a ‘Buy’ call for Dollar. “We remain positive on the company’s mid-to-long-term potential,” the brokerage added.
On the technical front, AR Ramachandran from Tips2trades said both the companies (Rupa and Dollar) have already become oversold on the daily and weekly charts, indicating that the slowdown has already been factored in the stock prices of this sector.”
“Rupa has strong support at Rs 206. Investors can buy for targets of Rs 252 and Rs 317 from a medium to long-term perspective. While Dollar now has support at Rs 316 and one can buy for-long term targets of Rs 378-440,” Ramachandran stated.
Shares of Bella Casa Fashion surged 11.38 per cent to close at 120.85. The scrip moved 14.89 per cent lower so far in 2023 and 32.88 per cent in the past one year.
Ramachandran said that support on the counter could be seen at Rs 107. “Bella Casa has bounced back from oversold levels on the daily charts and now finds support at Rs 107. An upward trend till resistance of 140 looks likely in the coming days,” he stated.
Meanwhile, Indian equity benchmarks settled higher today, halting their eight-day losing run, led by gains in metals, banks, energy and automobile stocks.
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