Arvin and Coyle Global: Sector Calls During the US Tariff Disruption

Neetu was covering the textiles and garmenting sector at Axis Mutual Fund when the US tariff announcements hit the sector broadly. Most companies in the space were under pressure, and the macro picture was uncertain. Her job was to figure out which companies, if any, were actually positioned differently.

She started with plant visits to both Arvin Limited and Coyle Global, walking through their operations end to end to assess whether day-to-day execution matched what management was saying publicly. For Arvin, she found a business actively turning around its garmenting operations, running at roughly 40 to 50 million pieces of annual capacity and expanding, with a new plant opening in Varanasi. The AMD business had committed to more than 25% growth and had made an overseas acquisition.

For Coyle Global, the picture was different but equally deliberate. The company had diversified its manufacturing base across India, Bangladesh, and Vietnam before the tariff disruption hit, which meant its revenue and margins were less exposed than peers. When the stock fell to around 1,000 rupees, Neetu saw the gap between market pricing and the company's actual positioning.

Beyond the plant visits, she validated her thesis across multiple sources: direct conversations with management at both companies, discussions with textile and garment industry experts, and checks with supply chain participants to understand raw material availability and logistics. She built both companies into her financial models, ran valuations, and concluded that the market was mispricing both.

She presented her recommendations to the fund managers with the supporting analysis. Arvin moved from approximately 350 to 550 rupees, a gain of over 50%. Coyle Global recovered from approximately 1,000 to 2,000 rupees, roughly doubling from the point of her call.