Textile companies in India had a tough time in FY18, as demand in export markets fell, and firms like Welspun India got caught up in controversy over material quality and standards.

However, this year as job growth in the US scales to record levels, retailers like Walmart have reported strong numbers, and this has boosted expectations that suppliers such as Indian textile firms will benefit from demand growth. The US-based National Retail Federation (NRF) has raised its retail sales forecast for the year, and expects 2018 retail sales to increase at a minimum of 4.5% over 2017. 

Indo Count Industries (which is in ten stock screeners today, including High Volume Gainer screeners) is benefiting from renewed investor enthusiasm, along with Welspun India. In terms of financials, the recovery is not yet fully apparent - there has been no significant change in the June quarter numbers, even as the industry has become more upbeat. Some fundamentals that drove IndoCount to share price heights in 2013 and 2014, such as export incentives and cheap cotton - will not return soon. But nonetheless the textile firms are expecting an upturn in revenues, and increases in demand. As sentiment has changed around these stocks, clearly investors are hoping for this too.