Shares of Indian textile companies, Gokaldas Exports Ltd., Pearl Global Ltd., Arvind Ltd., Welspun Living Ltd., and their peers would be in focus on Friday, August 1 as well, after the latest set of tariff developments from the US administration under President Donald Trump.The Trump Administration announced that India will have to pay a 25% tariff, although the unexplained penalties remain unclear.
However, the major reason why these stocks will be in focus today, is the fact that the tariff on Bangladesh has been cut down to 20% from the 35% that the Trump administration had imposed on India’s neighbour back in April.
India competes with countries like Bangladesh and Vietnam for garment exports to the US and Vietnam, which recently concluded a deal with the US, has a 20% tariff on its exports.
Most of these listed companies like Gokaldas Exports and Pearl Global have anywhere between 50% to 70% of their topline coming from the US market. In addition to these names, stocks like Arvind Ltd. (30% of topline from the US) and KPR Mill (21% from the US) also have exposure to the US market.According to analysts, India has a 6% market share in the US ready-made garment imports, while Vietnam has a 19% share and Bangladesh stands at 9%.
However, the major reason why these stocks will be in focus today, is the fact that the tariff on Bangladesh has been cut down to 20% from the 35% that the Trump administration had imposed on India’s neighbour back in April.
India competes with countries like Bangladesh and Vietnam for garment exports to the US and Vietnam, which recently concluded a deal with the US, has a 20% tariff on its exports.
Most of these listed companies like Gokaldas Exports and Pearl Global have anywhere between 50% to 70% of their topline coming from the US market. In addition to these names, stocks like Arvind Ltd. (30% of topline from the US) and KPR Mill (21% from the US) also have exposure to the US market.According to analysts, India has a 6% market share in the US ready-made garment imports, while Vietnam has a 19% share and Bangladesh stands at 9%.
In an interaction with CNBC-TV18, Pearl Global’s management said that it will be the end customer that will pay for the tariffs and not the company.
Shares of Pearl Global are trading another 6% lower after a 7% drop on Thursday, while those of Gokaldas Exports fell over 2%, after Thursday’s 4.5% fall.
Shares of KPR Mill also declined over 4% on Friday, while those of Welspun Living are trading 1.3% lower after a brief recovery from the lows of the day.
First Published: Aug 1, 2025 7:42 AM IS
