Faze Three continued its remarkable rally on Thursday, February 5, gaining another 2% to reach ₹540.40, marking a two-month high amid strong investor interest. According to reports from Live Mint, the stock had already locked in a 20% upper circuit limit for the second time in the previous trading session, taking the three-day cumulative gain to 47%. The sustained momentum has boosted the stock's one-year return to 27% and its five-year return to a massive 650%.
The stock surge was triggered by optimism over the India-US trade deal, as reported by Live Mint. US President Donald Trump announced a reduction in duties on Indian-made goods to 18% from the earlier 50%, providing significant relief to textile manufacturers. This move makes domestically manufactured products more competitive compared with other large textile-exporting countries such as China, Bangladesh, and Vietnam. For Faze Three, which derives nearly 90% of its revenue from exports to the US, UK, and Europe, according to the company's recent annual report, this announcement came as major relief.
According to Live Mint reports, textile stocks have been among the hardest hit in recent months due to steep tariffs of up to 50% on the sector, which is heavily dependent on the US market. India is among the top textile-exporting countries globally, accounting for around 4% of global textiles and apparel exports. The key export destinations for Indian textile products are the United States, the European Union, and the United Kingdom, which together account for over 50% of total textile and apparel exports. India has free trade agreements and bilateral trade agreements with all three regions.
As reported by Live Mint, Ashish Kacholia, known as the 'Big Whale' of Dalal Street, held a 5.42% stake in Faze Three at the end of the December quarter. According to Trendlyne shareholding data, he has been holding a stake in the company since September 2021. The majority of the stake is owned by promoters, accounting for 58%, followed by general shareholders with a 40.7% stake.
According to Live Mint reports, Faze Three is engaged in the manufacturing and exporting of superior quality, high-end home textile products, supplying top retailers across the globe. The company offers a diversified product line, with its main products including bathmats, bath rugs, chair pads, blankets, rugs, throws, floor coverings, bedspreads, patio mats, and seat covers. The company's focus on high-end home textile products positions it well to benefit from the improved trade environment with the US market.
