Textile shares Gokaldas, Indo Count extend rally, zoom up to 44% in 2 days

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.

Textile stocks price movement today

 

Shares of textile companies were on a roll, zooming up to 44 per cent on the BSE in the last two trading sessions after the United States (US) on Monday announced a reduction in tariffs. The US cut tariffs on Indian exports to 18 per cent from 50 per cent, which is a constructive development for the India–US trade relations, though key uncertainties linger, according to analysts.

 

Among individual stocks, Gokaldas Exports was locked in upper circuit for the second straight days, surging 20 per cent to ₹835.30 on the BSE at 10:22 AM. In the past two trading days, the stock price of the garments & apparels has zoomed 44 per cent from a level of ₹580.10 on Monday, January 2, 2026.

 

 

Faze Three (up 20 per cent at ₹525.60), Indo Count Industries (20 per cent at ₹343), Kitex Garments (17 per cent at ₹231.15), and Pearl Global Industries (8 per cent at ₹1,920.95) among others rallied up 20 per cent in intra-day today. In the past two trading days, these stocks have zoomed in the range of 20 per cent to 44 per cent. In comparison, the BSE Sensex was down 0.07 per cent at 83,679 at 10:30 AM.

 

Why did textile stocks zoom up to 44 per cent in 2 days?

 

In the textile space, decline in reciprocal tariffs from 50 per cent to 18 per cent and recent trade deals with the UK/EU provides multi-year advantage to boost earnings/cashflows by enhancing export base supported by prudent capacity expansion, according to analysts at ICICI Securities.

 

India has 8 per cent share in the US textile imports (including Apparels and Home Textile) of ~USD102 billion. In the post covid era, India’s share in US textile imports has improved by 500 bps over CY20-25 while China’s has reduced by ~600 bps over the same period. 

 

The US reduction of tariff rate to 18 per cent from 50 per cent earlier, provides a competitive edge over our Asian countries with tariff rates of 20-30 per cent. This along with opening up of the EU and UK markets expands scope of playing in large market of ~$344 billion (from earlier ~$102 billion). 

 

Increased order from existing clients, addition of new clients and consistent capacity addition to maintain steady supply will drive consistent revenue growth and improvement in profitability in the coming years, analysts said.

 

India is now in a favourable position vis-a-vis its emerging market Asian peers with the US tariffs of 18 per cent, which is lower than those for China (effective tariff of ~30 per cent), Bangladesh (20 per cent), Vietnam (20 per cent), Sri Lanka (20 per cent), Pakistan (19 per cent), Indonesia (19 per cent) and the Philippines (19 per cent). This will help India gain market share in the more labour-intensive sectors such as textiles, wherein it competes with many of these countries, according to analysts at JM Financial Institutional Securities.  Check Stock Market LIVE Updates 

ICICI Securities view on Gokaldas, Indo Count

 

The brokerage firm has a ‘BUY’ rating on Gokaldas Exports (target price ₹929), Indo Count Industries (TP ₹370), Pearl Global Industries (TP ₹2,255) and KPR Mill (TP ₹1,330).

 

Gokaldas Exports is one of India’s largest manufacturers and exporters of apparel, exporting to 50+ countries. It is one of the largest apparel exporters to the US with 80 per cent plus revenues coming from apparel exports to the US. 

 

Decline in reciprocal tariff alongwith trade deal with the UK/EU will help the company to witness steady double digit revenue growth and consistent improvement in the profitability in the coming years, analysts said.

 

As regards to Indo Count Industries, the company is the world’s largest manufacturer and exporter of Bed-linen products in India. It generates 70 per cent of products by exporting bed-linen products to the US.  The company has increased its total addressable market to $15 billion from $4 billion by expanding into high margin added segments such as Utility and Fashion bedding, the brokerage firm said.  =================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.