Sustainable Fashion Lifting Apparel Stocks Part 2

Sustainability and ESG Driving Premium Valuations Companies with strong ESG (Environmental, Social, Governance) credentials, such as Arvind Ltd and Raymond, may receive premium valuations from global investors. Sustainable textile manufacturing will become a key investment theme by late 2025. Source: Morgan Stanley India, NSE ESG Framework Domestic Retail Boom to Aid Apparel Players Growth in urbanization, Tier-2/3 consumption, and e-commerce is expected to benefit companies like Aditya Birla Fashion & Retail, Trent, and Go Colors. Premium and ethnic wear segments are set to grow faster due to evolving fashion preferences. Source: India Brand Equity Foundation (IBEF), Deloitte India Cotton Price Stability Likely to Support Margins After high volatility in 2022–23, cotton prices have stabilized in 2024. Continuation of this trend in 2025 will support EBITDA margins for cotton-based players. Government buffer stock policies may also help control raw material inflation. Source: Cotton Association of India (CAI), ICICI Direct