Indo Count Industries Limited has issued a clarification to the BSE regarding unusual volume movement in its shares, confirming that there is no pending material information that could impact the stock's price or volume behavior. The response, dated December 31, 2025, was issued by Company Secretary & GM-Legal Satnam Saini in reference to BSE's inquiry bearing reference number L/SURV/ONL/PV/APJ/2025-2026/820.

Company's Response to BSE Inquiry

The textile manufacturer stated that as of the date of communication, there are no impending information or announcements to be made to stock exchanges as per the materiality policy framed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The company emphasized that any movement in share volume is purely market-driven.

Regulatory Compliance Commitment

Indo Count Industries reiterated its commitment to regulatory compliance, highlighting its track record of prompt disclosures. The company stated that it has always been making requisite disclosures pursuant to Regulation 30 of SEBI Listing Regulations, following the materiality policy and guidelines established by its Board of Directors.

Market Movement Clarification

The company specifically addressed concerns about volume behavior, stating that any fluctuations in trading volume are market-driven rather than being influenced by undisclosed material information. This clarification aims to address investor concerns and maintain transparency in line with stock exchange requirements.

The response demonstrates Indo Count Industries' proactive approach to regulatory compliance and investor communication, ensuring that market participants have clear information about the company's disclosure practices and the nature of recent trading activity.

Avendus has initiated coverage on two prominent home textile stocks with divergent recommendations, as both companies navigate challenging US market conditions and ongoing trade negotiations.

Contrasting Stock Recommendations

The brokerage's analysis reveals starkly different outlooks for the two textile majors:

Indo Count Industries received a 'buy' rating with a target price of ₹348 per share, representing significant upside potential from its previous close. In contrast, Welspun Living was assigned a 'reduce' rating with a price target of ₹135 per share, indicating limited growth prospects.

Market Challenges and Trade Dynamics

Avendus highlighted several macro developments as key factors to monitor, particularly tariff normalization and progress on free trade agreements. Both Indian textile companies face substantial exposure to the US market, where the current administration has imposed 50% tariffs on imports. Trade deal negotiations are currently underway, which could significantly impact future business prospects.

The brokerage noted that falling US imports reflect both demand moderation and inventory rationalization. However, Avendus suggested that the current demand moderation could be cyclical rather than structural, potentially offering hope for future recovery.

Industry Repositioning Strategies

Indian textile players are actively repositioning themselves within the value chain through various strategic initiatives:

• Diversification of product portfolios
• Enhanced branding efforts
• Expansion into new markets and segments

These strategic moves aim to reduce dependency on traditional markets and create more resilient business models amid ongoing trade uncertainties.

Analyst Consensus and Market Performance

The broader analyst community shows mixed sentiment on both stocks:

Market reaction was immediate, with Indo Count Industries shares trading 5.1% higher at ₹273.55, while Welspun Living declined 0.6% to ₹130.76 around 10:35 am on Tuesday. The contrasting price movements reflect investor response to Avendus' differentiated recommendations and the underlying business fundamentals of each company.