SeekhKar

Textile Sector — PSX Analysis

The textile sector spans spinning, weaving, composite operations, and garment manufacturing. Textiles are Pakistan's largest export earner, with products ranging from raw cotton yarn to finished garments.

At a Glance

Companies tracked
6
Valuation approach
Asset-heavy
Reference P/E
6-10x
Reference P/B
1.0-2.0x
Reference dividend yield
3-6%

Reference ranges are SeekhKar editorial benchmarks for comparison, not live market figures. To check a company against them, use today's price from your broker and its latest reported EPS, book value and dividends. Models used: Graham Number and P/E-relative.

Textile Stocks Compared

The listed companies side by side on their latest results: P/E, P/B, dividends, growth and debt.

All KSE-100 comparisons by sector

Earnings Drivers

Export demand (especially US/EU), cotton prices, PKR/USD exchange rate, energy costs, and RMG order volumes.

Key Metrics to Watch

Export revenues, cotton inventory, capacity utilization, energy cost per unit, and order book size.

Investment Risks

Cotton price volatility, energy shortages, global trade policy changes, competition from Bangladesh/Vietnam, and water scarcity.

This sector analysis is for educational purposes only. Sector-wide trends may affect different companies differently. Always analyze individual stocks before investing.

How to Value Companies in the Textile Sector

Asset-heavy. Plant-intensive businesses whose book value is mostly tangible assets. The Graham Number (earnings and book value together) and P/E against the sector median suit them; cyclical earnings make long DCF projections unreliable.

  1. Graham Number

    √(22.5 × EPS × book value per share): a quick ceiling price for steady, profitable companies.

    Learn the methodOpen the calculator

  2. P/E-relative

    EPS × the sector's typical P/E: what the company would be worth if the market priced it like its peers.

    Learn the methodOpen the calculator

SeekhKar's own models assume a 20% required return for this sector. Use them as a starting point in the calculators and test higher and lower values. These are editorial assumptions, explained on the Methodology page.

Frequently Asked Questions

Calculators for This Sector

Run the methods that suit Textile companies with figures from their latest reports:

Intrinsic Value CalculatorDividend Calculator
Disclaimer: This sector guide is for educational purposes only and is not investment advice or a buy/sell recommendation.