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Stocks To Buy: Arvind To Gokaldas Exports, Five Textile Picks From Motilal Oswal With Double-Digit Upside — Full List Inside
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Motilal Oswal Report
Brokerage firm Motilal Oswal highlighted that the textile sector outperformed the broader market in Q1 FY27, delivering ~18% YoY growth, supported by a favorable low base and higher order execution. Margins also improved, aided by lower tariffs.
The brokerage expects the sector to sustain its outperformance, with ~18–20% growth and gradual margin recovery as cotton prices stabilise. The key monitorable include cotton prices, government export incentives, freight and fuel costs, the import-duty deadline on cotton, and incremental order flows from the US and Europe.
Historically, the textile sector has traded at a 10-year mean of 24x P/E and 14x EV/Ebitda from the brokerage coverage universe, with topline, Ebitda, and PAT growing just 6%, 4%, and 3% respectively over the last decade.
Given improved visibility, Motilal Oswal expects its coverage to grow 14%, 27%, and 38% respectively over FY26-28 and have therefore assigned a 7-10% premium to the mean EV/Ebitda and P/E multiple.
Motilal Oswal prefers Gokaldas Export, and Arvind, from the apparel space, and Indo Count Industries from the home textile space.
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