Synopsis:
Faze Three Ltd’s shares surged to the 20% upper circuit amid growing confidence in the outcome of ongoing India-US trade discussions.
The shares of a small-cap textile company that is engaged in manufacturing and exports of end home textile products, surged to the 20 percent upper circuit today, driven by rising optimism about a potential trade agreement between India and the US. As of June 2025, Ace Investor Ashish Kacholia holds a 5.42 percent stake in the company, consisting of ~13.18 Lakh equity shares.
Faze Three Ltd, with a market capitalization of Rs. 1,326.36 crore, closed at Rs. 545.40, hitting the 20 percent upper circuit from its previous day’s closing price of Rs. 454.50.
What’s the News?
Today, Shares of Faze Three hit the 20 percent upper circuit at Rs. 545, amid growing optimism over a potential India-US trade deal. The rally followed posts by US President Donald Trump and Prime Minister Narendra Modi, both signaling progress in ongoing trade talks that had previously stalled after the US imposed additional tariffs on Indian goods over Russian oil purchases.
The US is a major export market for India’s textile and apparel sector, accounting for around $10 billion in combined exports, including $4.8 billion in apparel and $5.2 billion in textiles in 2024.
Textile sector contributes roughly 2 percent to India’s GDP, 12 percent to total exports, and employs over 45 million people. Faze Three, one of the key exporters, derives 90 percent of its revenue from the USA, UK, and Europe, making it highly sensitive to trade developments.
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About the Company & Others
Faze Three Limited, founded in 1985, specializes in the manufacturing and export of a wide range of home textile products, including bathmats, rugs, blankets, throws, and cushions. The company has expanded its product portfolio within the home textile segment and serves as a direct supplier to leading retail chains across the USA, UK, and Europe.
A return on equity (ROE) of about 10.2 percent, a return on capital employed (ROCE) of about 11.6 percent and debt to equity ratio at 0.46 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 28.8x higher as compared to its industry average of 21.9x.
The company reported revenue of Rs. 212 crore in Q1FY26, up 42 percent YoY from Rs. 149 crore and flat QoQ versus Rs. 211 crore. Net profit stood at Rs. 13 crore, rising 86 percent YoY from Rs. 7 crore but declining 24 percent QoQ from Rs. 17 crore, indicating strong annual growth with sequential profit moderation.
Written by Akshay Sanghavi
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