Motilal Oswal backs 8 textile names, flags up to 39% upside on Arvind, Gokaldas
Coverage initiation cites China-plus-one sourcing, FTA tailwinds and capacity expansion. Buy calls on Gokaldas (TP ₹1,110), Arvind (₹670), Pearl Global (₹2,300), Indo Count (₹550) and Welspun Living (₹200). Top 4-5 players already command 15% of apparel and 28% of home-textile exports.
What happened
Motilal Oswal initiated coverage on 8 Indian textile and apparel stocks with buy ratings on Gokaldas, Arvind, Pearl Global, Indo Count and Welspun Living,
Key facts
- target ₹1,110 Gokaldas
- target ₹670 Arvind
- target ₹2,300 Pearl Global
- target ₹550 Indo Count
- target ₹200 Welspun
- 39% upside
- APAT CAGR 97% Welspun
- top 4-5 players 15% apparel, 28% home textile exports
Why this matters
Sector tailwinds and broker conviction across 8 names create a window to evaluate bolt-on capacity or vertical integration deals before valuations fully reflect the FY26-28 upside.
What to watch
- US-India trade deal progress and reciprocal tariff outcomes
- EU-India FTA negotiation milestones (target H1 2026)
- Bangladesh political stability and wage inflation trajectory
- Cotton price action and INR/USD movement
- Monthly apparel export data from AEPC and Ministry of Textiles
- China apparel export share to US/EU - sustained decline confirms thesis
- Track Q3FY26 export order book commentary from Gokaldas and Pearl Global earnings calls
- Monitor peer broker initiations - if 2+ houses match Motilal's targets, momentum builds
- Watch for capex announcements signaling confidence in multi-year demand
- Position size top picks (Gokaldas, Pearl) over diversified plays (Arvind, Welspun)