Why Are Textile Stocks Rallying Today? Gokaldas, KPR, Welspun Up 3% Post Trump’s Update; Check Target Price

Textile Stocks Rally: KPR Mills, Gokaldas Exports, Welspun Living, and other textile sector stocks are rallying on Tuesday, hours after the United States President Donald Trump announced that impose 35% tariffs on Bangladesh's imports.

Bangladesh has a massive trade surplus with the United States. Its net export to the US stood at an estimated $8.36 billion in 2024, while imports from the country amounted to $2.21 billion, according to the Bangladesh Bank and National Board of Revenue.

According to experts, the imposition of tariffs on Bangladesh is likely to benefit other textile industries of other South Asian countries like India, and Pakistan.

KPR Mills shares surged to an intraday high mark of Rs 1222.70 per share on BSE on Tuesday. The stock was trading 1.81% higher at Rs 1180.15 per share on BSE at 1:10 pm. Welspun Living shares were trading 1.43% higher at Rs 145.30 per share on BSE at 1:12 pm. Whereas, Gokuldas Exports shares were trading 2.35% higher at Rs 921.70 per share. Vardhman Textile shares were trading 4.39% higher at Rs 520.05 per share.

Donald Trump Announces Tariffs Ahead Of Deadline

While extending the US tariff deadline from 9 July to 1 August, United States President Donald Trump on Monday, unveiled the final levies imposed a number of countries as part of his tariff plan.

Donald Trump, on July 7, unveiled in a wave of promised letters threatening multiple nations to impose tariffs up to 40%. While making the announcement, DOnald Trump made it clear that he is open to additional negotiations.

"Starting on August 1, 2025, we will charge Bangladesh a Tariff of only 35% on any and all Bangladeshi products sent into the United States, separate from all Sectoral Tariffs. Goods transshipped to evade a higher Tariff will be subject to that higher Tariff. Please understand that the 35% number is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country," read an official letter from the White House for Bangladesh Government.

"We have had years to discuss our Trading Relationship with Bangladesh, and have concluded that we must move away from these longterm, and very persistent, Trade Deficits engendered by Bangladesh's Tariff, and Non Tariff, Policies and Trade Barriers. Our relationship has been, unfortunately, far from Reciprocal," read the letter.

Warning the nation to not retaliate with any additional tariffs, the letter added, "If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 35% that we charge."

Textile Stock Recommendations

Systematix Institutional Equities, in its brokerage report released on July 8, maintained a 'Hold' rating for Gokaldas Exports, indicating an upside of 14.3%. The brokerage has fixed a target price of Rs 1029 per share for the stock.

Welspun Living

Welspun Living was given a 'Buy' rating with a target price of Rs 176 per share, according to Systematix Institutional Equities report. The brokerage had indicated a 227% upside in the stock valuation.

Whereas, Antique Stock Brokerage gave a 'Hold' rating for the stock with a target price of 167 per share, indicating an upside of 16%.

KPR Mills

KPR Mills stock was trading at 1180.15 per share. Antique Brokerage gave a 'Hold' rating for the stock and had indicated a 10% downside in its valuation. Systematix Institutional had also maintained a 'Hold' rating for the stock with a target price of Rs 1067 per share. The brokerage has indicated a downside of 7.9% in long-term.

Vardhman Textiles

The textile stock was trading higher during Tuesday's session. Systematix has maintained a 'Buy' rating for the stock with a target price of Rs 553 per share, indicating an upside of 10.8%.