Brokerage firm Motilal Oswal Financial Services initiated coverage on 8 companies across apparel and home textiles, with Gokaldas Exports, Arvind, and Indo Count Industries as high-conviction picks.
Textile stocks in focus: The British High commissioner cleared the India-UK Free Trade Agreement, and will come into force from July 15, 2026, say reports.
Indo Count Q4 results: EBITDA and margins witnessed recovery driven by higher contribution from new businesses due to absorption of incubation costs and favourable exchange rate.
Textile stocks in focus: Lower reciprocal tariffs and recent trade deals with UK/EU provide multi-year advantage to boost earnings/cashflows by enhancing export base for the sector, believe analysts.
The signing of India-US trade deal remains key monitorable as any revision to the current tariff rates to below India's competitive peers would be positive for the textile sector, say analysts.
India and the UK have set themselves a target to double trade by 2030, which will help textile companies to diversify in new markets and grab more opportunities in the coming years.
Shares of Indo Count Industries rallied 10% to ₹307.79 on the NSE in Tuesday's intra-day trade after ICICI Securities recommended a BUY rating on the stock with a price target of ₹370 per share.
Welspun Living, Gokaldas Exports, Pearl Global, Vardhman Textiles, Trident, Kitex Garments, Nahar Spinning and Himatsingka Seide rallied between 5 per cent and 12 per cent.
In the medium to long term India's tariff rate are competitive with other major exporting countries and hence exports order will normalise once tariff effect gets absorbed in the market.
Titan, Gokaldas Exports, Welspun Living, Goldiam International and Indo Count are likely to decline up to 27% from here, as stocks break below key support levels; show technical charts.
Indo Count Industries said it deferred the volume and margin guidance amid ongoing US tariff uncertainty leading to strategy and portfolio re-jig by retailers in the US.
To expand its utility bedding business nationwide, Indo Count aims to set up a greenfield manufacturing facility in North Carolina, USA to deepen its market presence
The stock price witnessed a healthy recovery in anticipation of gradual restocking by global retailers (home textile was the worst impacted) and India's market share gain in US bedsheet
The demand trajectory for home textiles, which had materially slowed down in key geographies such as the US, UK and Europe was gradually picking up pace.
The stock was trading at its lowest level since July 2021. In the past one month, it has underperformed the market by falling 22 per cent, as compared to a 2.4 per cent decline in Sensex
