Synopsis:
With reports suggesting that a potential India-US Trade Deal is approaching soon, stocks like Waaree Energies, Gokladas, and some other stocks are in focus.
As reports suggests that a potential trade deal between India and USA is on the edge, in this article, we will dive into three companies that have high exposure to the US and derive a large chunk of their revenue from it which might greatly benefit from this positive development.
According to reports, a potential trade deal between India and the US might be announced very soon, which would reduce American tariffs on Indian goods from a hefty 50 percent to a much lower bracket of 15-16 percent. The trade deal is likely to be finalized in the upcoming ASEAN summit, which is scheduled to be held by this month.
One of the major root causes behind the steady US tariffs was that India bought a huge volume of Russian oil. As of the latest details available, India imports around 34 percent of its crude oil energy from Russia and around only 10 percent from the US.
However, India has maintained a firm stance on its energy imports, stating that it will gradually reduce its dependence on Russian crude to avoid sudden disruptions that could lead to volatility in global oil prices.
1. Waaree Energies
Waaree Energies is the largest solar panel manufacturer in India with a module capacity of 18.7 GW and 5.4 GW of cell capacity. The company has been concentrating on making quality and low-cost solar panels as a means of encouraging the use of clean energy and lowering carbon emissions since 2007. It runs five manufacturing units in India and is also present in the global markets.
The company has a vast presence in India, serving over 700 districts, and also operates in 25 countries, including the US, which is a major client of the company. Currently, the company derives around 47 percent of its revenue from overseas, with the USA being a major export hub.
2. Gokaldas Exports
Gokaldas Exports Limited is a premier garment manufacturer situated in India. Gokaldas manufactures a variety of apparel, including fashion wear, outerwear, bottom wear, casualwear, and sportswear for men, women, and children. Gokaldas supplies several leading international fashion brands and retailers and exports worldwide.
This textile exporter makes around 70 percent of its revenue from the United States; hence, it is highly dependent on the American market and vulnerable to any changes in the US market.
Also Read: Waaree Renewable and 4 other stocks that delivered up to 1000% net profit growth in Q2
3. Welspun Living
Welspun Living is a subsidiary of Welspun Group. It is engaged in manufacturing and marketing consumer textiles and floor covering materials such as bedding, towels, rugs, and tiles in India and the international market under brands like Christy and Martha Stewart.
Welspun Living makes around 65 percent of its revenue from the United States; hence, this shows that it is highly dependent on the American market, and any changes, be it positive or negative shift the operation and growth of the company.
In addition to these, many big Indian IT companies like TCS, Infosys, HCL Tech, and Wipro have a considerable share of their revenues coming from the US market. Most of their growth is led by the US market, which signifies a robust global demand for Indian IT services. Any change in the US market creates a rupture in these companies’ operations, as the US is the largest consumer in the world.
Written by Satyajeet Mukherjee
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
