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Indo Count Industries – Hidden Gem

ICICIdirect Research 19 Sep 2025 DISCLAIMER

Indo Count Industries (ICIL), incorporated in 1988 is one of the leading manufacturer and exporter of Bed linen. ICIL has 7 manufacturing facilities across India (4 facilities; 153mn metres) and the US (3 Facilities; 32.5mn pieces per annum).
ICIL 2.0 emphasises on strengthening the core, expand into high margin segments such as utility/fashion bedding and expand the branded product portfolio to build a sustainable business model in long run.
ICIL has increased its total addressable market to US $15bn from US $4bn by expanding into high margin segments such as Utility and Fashion bedding. ICIL recently acquired Fluvitex USA and Modern Home Textile, which have presence in the pillow and quilt. It has also announced an additional greenfield investment in USA which adds more capacity in the pillow segments.
The acquired units and greenfield expansion together will have capacity of 32.5mn (31mn pillows + 1.5mn quilts) by end of FY26. With these strategic initiatives the company is aspiring to grow its revenues by 2x by FY28.
ICIL’s branded and licensed portfolio scaling up rapidly. It acquired Wamsutta brand in US in FY25, which was relaunched in Q1FY26 to cater to the premium consumer.
The company expects the contribution from the brands to add almost US$100mn (~Rs850cr) while gaining strengths in the US utility bedding market which has revenue potential of US$175mn (~Rs1487.5cr over the next three years).
US implication reciprocal and penal tariff of 50% on Indian exports will have short term impact on the performance of ICIL’s performance with flat to marginal decline in revenues and EBIDTA margins expected to reach bottom by Q3FY26. However, trade talks are going on well and trade deal with US is expected to get sign by Nov,25 with tariff rate reducing to 25%.
Baring lull, FY26 ICIL revenues and EBIDTA is expected to grow at CAGR of 14% and 25% over FY25-28E. FTA with UK and likely deal with EU will provide incremental opportunities improving the scope of growth in the coming years.
ICIL’s stock price is down by 30% from its 52-week high and currently trading at 18x and 12x its FY27E and FY28E earnings. With limited downside risk and better growth prospects in the medium to long run, we recommend Buy on ICIL with a price target of Rs370.
 

 

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