Shares of Pearl Global Industries Ltd (PGIL) saw a sharp uptick in Wednesday's trade, jumping 12.11 per cent to hit an all-time high of Rs 2,115. The stock was last seen trading 10.14 per cent higher at Rs 2,077.85. At this level, it has gained 30.09 per cent on a year-to-date (YTD) basis.

The sharp upmove followed Motilal Oswal Financial Services Ltd's (MOFSL's) initiating coverage on select textile counters, including PGIL with a 'Buy' call.

The domestic brokerage expects higher revenue growth for Pearl Global, driven by capacity expansion across plants in India, Bangladesh, Vietnam and Indonesia.

"We project a revenue, EBITDA, and APAT CAGR of 14 per cent, 25 per cent, and 29 per cent, respectively, over FY26-28. We initiate coverage on PGIL with a BUY rating and an EV/EBITDA-based TP of Rs 2,300, implying an EV/EBITDA multiple of 15x on FY28E earnings," it also stated.

Apart from PGIL, MOFSL assigned 'Buy' ratings to Gokaldas Exports Ltd (Gokex), Indo Count Industries Ltd and Arvind Ltd with targets of Rs 1,110, Rs 550 and Rs 670, respectively.

Meanwhile, the brokerage said most listed Indian textile players are predominantly export-focused, with exports accounting for around 20 per cent of India's textile total addressable market (TAM) while offering superior profitability and return ratios compared with the fragmented domestic market.

"Global brands increasingly favor large-scale, compliant suppliers with streamlined audit processes, positioning leading Indian exporters well for market share gains," it added.

The brokerage highlighted the scope for consolidation within India's textile export sector.

"Our data indicates that the top 4–5 apparel and home textile players account for ~15/~28 per cent of export sales, respectively, and given India's highly fragmented exporter base, there is significant runway for further consolidation," MOFSL further stated.