Why Are Pearl Global shares down 8% today? Explained
Shares of Pearl Global Industries Ltd plunged over 8% to ₹1,506.70 on Wednesday, July 31, amid broader pressure on Indian textile and apparel exporters following U.S. President Donald Trump's announcement of a 25% tariff on Indian goods. The announcement also includes a penalty clause for countries purchasing oil and military goods from Russia, which specifically named India.
Pearl Global, along with other textile players like Gokaldas Exports, Welspun Living, and Indo Count Industries, saw sharp declines in morning trade. The slide is driven by concerns over India's significant reliance on U.S. markets for apparel exports. Here's what's driving the fall: Trump's 25% tariff on Indian exports begins August 1 .
on Indian exports begins . Penalties for defense and energy purchases from Russia may be added.
for defense and energy purchases from Russia may be added. Pearl Global derives over 50% of its revenue from the U.S. , making it highly vulnerable.
, making it highly vulnerable. Peer companies like Gokaldas (70% U.S. exposure) and Welspun (65%) also saw steep cuts.
like Gokaldas (70% U.S. exposure) and Welspun (65%) also saw steep cuts. Vietnam has already agreed to a 20% tariff deal with the U.S., and Bangladesh faces a 35% duty, leaving Indian players at a competitive disadvantage. What the management said:
Pearl Global's management recently stated in an interview that the company plans to expand capacity in Vietnam by 25–30% to meet a surge in U.S.-bound orders and diversify risk amid growing trade volatility.
Despite the expansion strategy, the announcement from the U.S. caught markets off guard, triggering a selloff across textile stocks with high U.S. exposure. Analysts warn that cost pass-throughs and margin compression could follow if tariffs are fully implemented without exemptions.
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Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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