Synopsis: Motilal Oswal is bullish on five textile stocks, Gokaldas Exports, Indo Count, Arvind, Pearl Global, and Welspun Living, expecting up to 30% upside. The view is driven by export recovery, demand growth, and margin expansion, with strong earnings CAGR projections and sector consolidation benefits supporting long-term growth potential.
Brokerage firm Motilal Oswal has adopted a bullish outlook on select textile stocks, citing improving demand conditions, export recovery, and margin expansion potential. The firm expects these companies to benefit from a cyclical uptrend in the textile sector along with supportive policy measures, with upside potential of up to 30 percent.
Textile stocks such as Gokaldas Exports, Indo Count, Arvind, Pearl Global, and Welspun Living rose after brokerage Motilal Oswal initiated coverage, assigning “buy” ratings and boosting investor sentiment across the textile sector.
As per Motilal Oswal’s data, the top four-five apparel and home textile players account for 15%-28% of export sales, respectively, and given India’s highly fragmented exporter base, there is significant runway for further consolidation.
Gokaldas Exports Ltd
Gokaldas Exports Ltd is one of India’s leading apparel manufacturing and export companies based in Bengaluru. It specializes in woven and knit garments for global brands, focusing on fast fashion supply chains, design support, and large-scale production. The Brokerage firm has given a buy rating with a target of Rs. 1,110 with an upside potential of 29 percent from the previous day’s close.
Rationale
The company is expected to report strong revenue growth, supported by expansion in its India operations and improved utilization in its Africa business following the renewal of the African Growth Opportunity Act (AGOA).
Motilal Oswal projects robust financial performance over FY26–FY28, with revenue CAGR of 18%, EBITDA CAGR of 33%, and adjusted profit after tax (APAT) CAGR of 73%. The stock is valued at 14x FY28 estimated earnings on an EV/EBITDA basis.
Indo Count Industries Ltd
Indo Count Industries Ltd is a prominent Indian textile company engaged in manufacturing and exporting bed linens and home textile products. It supplies premium bedding solutions to global retailers, particularly in the US market. The company emphasizes innovation, quality control, sustainable production practices, and strong backward integration in cotton-based textile manufacturing. The Brokerage firm has given a buy rating with a target of Rs. 550 with an upside potential of 27 percent from the previous day’s close.
Rationale
Motilal Oswal expects the bed linen exporter to deliver strong revenue growth, driven primarily by the emerging Utility Bedding segment from a low base, followed by steady growth in its core Indian bed linen business.
The company is projected to achieve a revenue CAGR of 20%, EBITDA CAGR of 44%, and adjusted PAT CAGR of 90% over FY26–FY28. It is valued at 15x FY28 estimated earnings on an EV/EBITDA basis, with Indo Count highlighted as a key beneficiary.
Arvind Ltd
Arvind Ltd is a diversified Indian conglomerate known for textiles, apparel manufacturing, and advanced fabric production. Headquartered in Ahmedabad, it produces denim, shirting, and technical textiles for global brands.
The company also operates in retail, engineering, and environmental solutions, focusing on innovation, sustainability, and vertically integrated textile value chain models. The Brokerage firm has given a buy rating with a target of Rs. 670 with an upside potential of 21 percent from the previous day’s close.
Rationale
The company is undergoing a strategic shift from a fabric-focused business to a garments-led model, which significantly expands its addressable market, according to Motilal Oswal.
Additionally, the AMD business is expected to provide further support due to its higher margin profile and strong growth potential. The brokerage projects a revenue CAGR of 15%, EBITDA CAGR of 23%, and adjusted PAT CAGR of 29% over the next three years, valuing the stock at 13x FY28 estimated EV/EBITDA.
Pearl Global Industries Ltd
Pearl Global Industries Ltd is an Indian apparel manufacturing and sourcing company providing end-to-end garment solutions for international fashion brands. It operates design, production, and supply chain facilities across multiple countries.
The company focuses on fast fashion, compliance, and cost-efficient manufacturing with strong global retail partnerships and diversified sourcing networks. The Brokerage firm has given a buy rating with a target of Rs. 2,300 with an upside potential of 12 percent from the previous day’s close.
Rationale
The company is expected to see higher revenue growth supported by capacity expansion across key manufacturing locations, including India, Bangladesh, Vietnam, and Indonesia. Motilal Oswal projects a revenue CAGR of 14%, EBITDA CAGR of 25%, and adjusted PAT CAGR of 29% over the next three years. The stock is valued at 15x FY28 estimated earnings on an EV/EBITDA basis.
Welspun Living Ltd
Welspun Living Ltd is a leading Indian home textiles company and part of the Welspun Group, specializing in bedding, towels, and home furnishing products. It serves global retailers with vertically integrated manufacturing and strong sustainability initiatives. The Brokerage firm has given a buy rating with a target of Rs. 200 with an upside potential of 18 percent from the previous day’s close.
Welspun Living is expected to deliver mid-teens revenue growth, driven mainly by the home textiles segment, supported by lower tariffs and new free trade agreements signed by India with the UK and the European Union, according to Motilal Oswal.
The brokerage projects a revenue CAGR of 14%, EBITDA CAGR of 43%, and PAT CAGR of 97% over FY26–FY28. The stock is valued at 12x FY28 estimated earnings on an EV/EBITDA basis.
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