- Titan, Relaxo, Bata, TBZ, and Kalyan Jewellers benefit from India-US trade deal potential
- Jewellery firms show stronger profits and cash flows than textiles or footwear sectors
- Leather and footwear face challenges from fewer new products and online commerce growth
Titan Co., Relaxo Footwears Ltd., Bata India Ltd., Tribhovandas Bhimji Zaveri Ltd., and Kalyan Jewellers Ltd. are some of the stocks from the export-facing industries that have good potential as a results of the India-United States trade deal, according to Rahul Arora, chief executive officer of Ashika Institutional Equities. He noted that textiles, jewellery, leather and footwear segments continue to grapple with high working capital requirements and debt-related issues.
However, he sees the jewellery space as a more attractive way to play the theme, citing companies such as Titan, Kalyan Jewellers and TBZ, which have relatively stronger profit-and-loss profiles and healthier cash flows.
Arora added that the leather and footwear segment have been weighed by a lack of new product launches and the growth of online commerce. But players like Bata and Relaxo benefit from strong market share, brand value and decent cash flows.
Shares of Kalyan Jewellers is up 18% so far this month, while Titan is up 6%. Bata India is flat while Relaxo is down 5%.
The major offering from the US in the trade deal is a tariff rate of just 18% on a variety of Indian-originating goods, including textiles, apparel, leather, footwear and organic chemicals.
Nifty Returns
The market expert further said he expects returns on the Nifty 50 just about 10% this calendar year, just as in 2025, unless there is serious earnings upgrades.
"The good thing is the upgrade-downgrade ratio is stabilising. For two years, the downgrades were more than the upgrades. That is now approaching parity and will slowly move in favour of upgrades," he said.
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