Meanwhile, the stocks on with Motilal Oswal initiated coverage with a “neutral” rating, were trading with losses
| Stock | Rating | Price Target (₹) | Upside (%) |
| Gokaldas Exports | Buy | 1,110 | 36 |
| Arvind | Buy | 670 | 30 |
| Pearl Global | Buy | 2,300 | 28 |
| Indo Count | Buy | 550 | 39 |
| Welspun Living | Buy | 200 | 23 |
| KPR Mill | Neutral | 1,200 | 3 |
| Trident | Neutral | 28 | 6 |
| Vardhman Textile | Neutral | 700 | 6 |
Here’s what is driving Motilal Oswal’s stance on these individual companies:
Gokaldas Exports
The company is likely to deliver strong revenue growth driven by the India business through capacity expansion and the Africa business by higher utilization after the renewal of the African Growth Opportunity Act (AGOA)
Motilal Oswal expects the company’s revenue to grow at a Compounded Annual Growth Rate (CAGR) of 18%, Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) to grow at a 33% CAGR and adjusted profit after tax (APAT) to see a 73% CAGR over financial year 2026-2028.
It values the stock at 14 times financial year 2028 estimated earnings on an Enterprise Value to EBITDA basis.
Arvind
The company is on the verge of a strategic transformation from a fabric-focused player to a garments-led business, thereby offering a large addressable market, as per Motilal Oswal.
Along with this, the AMD business will also support as it has a superior margin profile and a strong growth potential.
Motilal Oswal is projecting a revenue CAGR of 15%, EBITDA CAGR of 23% and an Adjusted PAT CAGR of 29% over the next three years. It has valued the stock at an EV/EBITDA multiple of 13 times its estimated earnings for financial year 2028.
Pearl Global
The company expects higher revenue growth driven by capacity expansion across plants like India, Bangladesh, Vietnam and Indonesia.
Motilal Oswal is projecting a revenue CAGR of 14%, EBITDA CAGR of 25% and an Adjusted PAT CAGR of 29% over the next three years.
The stock is being valued at an EV/EBITDA multiple of 15 times its financial year 2028 estimated earnings.
Indo Count Industries
Motilal Oswal expects the bed linen exporter to deliver higher revenue growth led by the emerging business or the Utility Bedding segment, on a low base, followed by the Indian business, which is the bed linen segment.
The company is likely to report a revenue CAGR of 20%, EBITDA CAGR of 44% and an Adjusted PAT CAGR of 90% over financial year 2026-2028.
Indo Count is also being valued at an EV/EBITDA multiple of 15 times its financial year 2028 estimated earnings.
Welspun Living
Welspun Living could deliver mid-teens revenue growth led by the home textile segment, aided by lower tariffs, and new FTAs signed by India with the UK and the European Union, the Motilal Oswal note said.
The brokerage expects a revenue / EBITDA and PAT CAGR of 14%, 43% and 97% respectively over financial year 2026-2028.
Motilal Oswal is valuing the stock at 12 times EV/EBITDA on financial year 2028 earnings.
Supplier consolidation
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.
Stock reaction
Shares of Gokaldas Exports, Indo Count, Arvind, Pearl Global and Welspun Living were trading 1% to over 3% higher, while Vardhman Textile, KPR Mill and Trident were down 0.7% to 1.5% around 11.45 am on Tuesday.
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