Textile Export Stocks Gain as Motilal Oswal Initiates Coverage with ‘Buy’ Ratings

Brokerage cites capacity expansion, policy support and global sourcing opportunities as key growth drivers for India's textile sector.

Textile exporter stocks recorded gains on Wednesday after Motilal Oswal Financial Services initiated coverage on selected companies with ‘buy’ ratings, identifying capacity expansion and policy support as major factors supporting future growth.

According to the brokerage, the price targets imply potential gains ranging from 9% to 28% over Wednesday's closing prices.

Following the report, Gokaldas Exports rose 3.7%, Arvind advanced 6.3%, Pearl Global gained 11.2%, Indo Count Industries increased 9.5%, and Welspun Living climbed 5%.

Motilal Oswal's Top Textile Stock Picks

In a client note, Motilal Oswal stated that leading textile companies are undertaking significant investments across garments, fabrics, technical textiles and value-added product segments to benefit from expanding global sourcing opportunities.

“Unlike earlier expansion phases focused on commoditised products, the current investment cycle is directed toward higher-margin segments such as garments, MMF, specialty fabrics and advanced textiles, along with automation, sustainability and premiumisation initiatives.”

The brokerage also noted that the Indian textile sector is entering a strong capital expenditure cycle, supported by investments in manufacturing capacity and favourable policy measures.