Mukul Agrawal owned stock up 10%; ICICI Sec sees 33% upside; details here

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.

Indo Count Industries share price movement

 

Shares of Indo Count Industries (ICIL) rallied 10 per cent to ₹307.79 on the National Stock Exchange (NSE) in Tuesday’s intra-day trade. Brokerage firm ICICI Securities has recommended a 'BUY' rating on the ICIL stock with a target price of ₹370 per share, impling 33 per cent upside from Monday’s close price of ₹279.

 

The stock price of ICIL had hit a 52-week low of ₹210.70 hit on April 7, 2025. It halved from its 52-week high of ₹423.40 touched on December 16, 2024.

 

Investor Mukul Mahavir Agrawal holds 1.26 per cent stake in ICIL at the end of June 2025 quarter, the shareholding pattern data shows.  CATCH STOCK MARKET LIVE UPDATES TODAY

 

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ICIL's June 2025 quarter (Q1) financial performance

 

The overall demand sentiment showed signs of softness due to the US. tariff situation, leading to demand cutbacks that impacted volumes and revenues during the beginning of the quarter. The fluid trade environment has prompted customers to prioritize inventory control and portfolio realignment, weighing on overall demand.

 

EBITDA was down 23 per cent YoY at ₹119 crore in Q1FY26. EBITDA margin contracted 200 bps at 12.26 per cent. The management said the margin contraction can be attributed towards incubation costs of new businesses, which are expected to continue until the end of this year.

ICICI Securities view on ICIL Stock

 

ICIL’s stock price has corrected by 34 per cent from its high and is currently trading at 17x/12x its FY27E/FY28E earnings. With concerns regarding the tariffs receding as India and the US government are close to sign a trade seal soon, the risk reward is favourable, analysts at ICICI Securities said in the company update.

 

The US tariff of 50 per cent on India exports will put a short break on growth momentum in FY26. Signing a trade deal with the US by November 2025 will reduce tariff uncertainties on India. Hence, the core home textile business is expected to get back in recovery mode from FY27. This along with foray into high margin utility bedding will help ICIL’s revenues and EBIDTA to grow at CAGR of 22 per cent and 45 per cent respectively over FY26-28E.

 

The company expects the branded portfolio to add $100 million and utility bedding business to add $175 million over the next three years. With these strategic initiatives the company is aspiring to grow its revenues 2x by FY28, ICICI Securities said in a company report.  ALSO READ | Asian Paints, Nerolac: Weak demand to hit paint cos' Q2 profit: PL Capital

Sector outlook

 

Meanwhile, India’s textile industry is gearing to leverage on various trade deals to expand its global presence through share gains and portfolio expansion in the coming years. The signing of a free trade agreement (FTA) with the UK provides India a competitive edge over other key home textile exporting countries. 

 

Though imposition of 50 per cent tariff by the US on India exports will put stress on profitability in the near term, favourable trade deals will help to gain share in the US home textile market in the long run.

 

The US accounts for ~70 per cent of ICIL’s sales, with the balance 30 per cent derived from the UK, Europe, and other regions. Given that Q2 sales have historically been stronger and are likely to be supported by pre-buying from the US retailers in anticipation of higher tariffs, CARE Ratings expects the company’s performance in H1FY26 to remain resilient, with the tariff-led impact likely to be more pronounced in H2FY26.

 

The outlook for the coming year remains optimistic, supported by trade agreements and a rebound in global demand, particularly in the USA and India. However, the introduction of new US tariffs requires careful navigation to ensure sustained growth and stability, Indo Count said in its FY25 annual report.