Motilal Oswal Financial Services Ltd (MOFSL) has begun coverage on select textile counters, including Gokaldas Exports Ltd (Gokex), Indo Count Industries Ltd, Arvind Ltd, Pearl Global Industries Ltd (PGIL) and Welspun Living Ltd with 'Buy' calls.

The brokerage believes Gokaldas may deliver strong revenue growth driven by the India business through capacity expansion and the Africa business by higher utilisation after the renewal of the African Growth Opportunity Act (AGOA).

"We project a revenue, EBITDA, and APAT CAGR of 18 per cent, 33 per cent, and 73 per cent, respectively, over FY26-28. We initiate coverage on GEXP with a BUY rating and an EV/EBITDA-based TP of Rs 1,110, implying an EV/EBITDA multiple of 14x on FY28E earnings," MOFSL added.

In the case of Indo Count, the brokerage noted that the bed linen exporter is expected to deliver higher revenue growth led by emerging business on a low base (utility bedding segment), followed by the Indian business (bed linen segment). "We project a revenue, EBITDA, and APAT CAGR of 20 per cent, 44 per cent, and 90 per cent, respectively, over FY26-28. We initiate coverage on ICNT with a BUY rating and an EV/EBITDA-based TP of Rs 550, implying an EV/EBITDA multiple of 15x on FY28E earnings," it also said.

According to MOFSL, Arvind is on the verge of a strategic transformation from a fabric-focused player to a garments-led business, which offers a larger addressable market.

"Additionally, the AMD segment is expected to support, with its superior margin profile and strong growth potential. We project a revenue, EBITDA, and APAT CAGR of 15 per cent, 23 per cent, and 29 per cent, respectively, over FY26-28. We initiate coverage on ARVIND with a BUY rating and an EV/EBITDA-based TP of Rs 670, implying an EV/EBITDA multiple of 13x on FY28E earnings," it added.

The brokerage expects higher revenue growth for Pearl Global, driven by capacity expansion across plants like 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.

MOFSL noted that Welspun is expected to deliver mid-teens revenue growth, led by the home textile segment, with the help of lower tariffs and new FTAs with the UK & EU. "We project a revenue, EBITDA, and APAT CAGR of 14 per cent, 43 per cent, and 97 per cent, respectively, over FY26-28. We initiate coverage on WELSPUN with a BUY rating and an EV/EBITDA-based TP of Rs 200, implying an EV/EBITDA multiple of 12x on FY28E earnings," it added.

The brokerage also initiated coverage on KPR Mill Ltd, Vardhman Textiles Ltd and Trident Ltd, but with a 'Neutral' call. "KPR is well-positioned to benefit from its leadership in the Indian textile and apparel industry, supported by the largest garmenting capacity among listed peers, followed by the sugar and ethanol business. We project a revenue, EBITDA, and APAT CAGR of 13 per cent, 20 per cent, and 20 per cent, respectively, over FY26-28. We initiate coverage on KPR with a NEUTRAL rating and an EV/EBITDA-based TP of Rs 1,200, implying an EV/EBITDA multiple of 22x on FY28E earnings," MOFSL said.

It sees Trident delivering a high single-digit growth, led by the home textile portfolio, followed by paper and yarn. "We project a revenue, EBITDA, and APAT CAGR of 11 per cent, 17 per cent, and 29 per cent, respectively, over FY26-28. We initiate coverage on TRID with a NEUTRAL rating and an EV/EBITDA-based TP of Rs 28, implying an EV/EBITDA multiple of 12x on FY28E earnings," the brokerage also said.

"Vardhman Textiles, the largest spinning player, is expected to deliver mid-single-digit growth led by the garment business (~42 per cent CAGR on a low base), followed by the yarn business (~5 per cent CAGR) over FY26-28, with better realisation. We project a revenue, EBITDA, and APAT CAGR of 9 per cent, 24 per cent, and 32 per cent, respectively, over FY26-28. We initiate coverage on VTEX with a NEUTRAL rating and an EV/EBITDA-based TP of Rs 700, implying an EV/EBITDA multiple of 11x on FY28E earnings," MOFSL further stated.