Ashish Kacholia portfolio: Small-cap textile stock surges 47% in three sessions. Do you own?

Faze Three, one of the leading manufacturers of home textile products, continued to attract strong investor interest during Thursday’s session on February 5, even after back-to-back upper circuit limits, with the stock gaining another 2% to hit a two-month high of ₹540.40 apiece.

In the previous trading session, the stock locked in a 20% upper circuit limit for the second time, triggered by optimism over the India–US trade deal, taking the three-day cumulative gain to 47%. The run-up also boosted the stock’s one-year return to 27% and its five-year return to a massive 650%.

Textile stocks have been among the hardest hit in recent months, as the sector, which is heavily dependent on the US market, faced steep tariffs of up to 50%, with analysts warning that sustained higher duties could hurt demand and margins.

However, the long-stalled trade agreement was finally sealed after US President Donald Trump earlier this week announced a reduction in duties on Indian-made goods to 18% from the earlier 50%. This move also makes domestically manufactured products more competitive compared with other large textile-exporting countries such as China, Bangladesh, and Vietnam.

For Faze Three, the announcement came as a major relief, as the company derives nearly 90% of its revenue from exports to the US, the UK, and Europe, as per the company's recent annual report.

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, according to media reports.

Notably, India has free trade agreements (FTAs) and bilateral trade agreements (BTAs) with all three regions.

Ashish Kacholia holds a 5.42% stake in Faze Three

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.

Faze Three is engaged in the manufacturing and exporting of superior quality, high-end home textile products, supplying top retailers across the globe. It 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.

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