Motilal Oswal has launched coverage on a basket of eight Indian textile and apparel manufacturers, signaling a shift in sentiment toward the sector.
The brokerage issued 'buy' recommendations for several key players, including Gokaldas Exports, Arvind, Pearl Global, Indo Count, and Welspun, projecting potential upside of up to 39% for the group.
The initiation is driven by a confluence of favorable fundamentals.
Analysts point to a gradual recovery in global demand for apparel, alongside significant capacity additions by these firms.
Improving utilization levels are expected to drive margin expansion, while potential benefits from lower tariffs and free trade agreements provide an additional tailwind for exporters.
This coverage marks a notable entry into a sector that has faced headwinds from volatile global trade dynamics.