Buy Gokaldas Exports, target price Rs 865: Sharekhan by BNP Paribas
Gokaldas Exports with a target price of Rs 865. The current market price of Gokaldas Exports is Rs 773.6.
Gokaldas Exports, incorporated in the year 2004, is a Small Cap company (having a market cap of Rs 4687.59 Crore) operating in Apparels sector.
Gokaldas Exports key Products/Revenue Segments include Textile Apparels, Export Incentives, Scrap, Job Work for the year ending 31-Mar-2021.
Financials For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 522.23 Crore, down -1.49 % from last quarter Total Income of Rs 530.12 Crore and down -14.76 % from last year same quarter Total Income of Rs 612.69 Crore.
Company has reported net profit after tax of Rs 32.55 Crore in latest quarter.
Investment Rationale
Acquisition of Atraco improves the long term growth prospects of the company with bigger scale. With newly acquired African business, the company can focus on scaling up its US business while the India business can focus on gradual expansion in UK/EU (especially post FTA signing with UK in the coming months).
Expansion in the new facility in Kenya provides incremental revenue benefit of Rs. 200-250 crore in FY2025.
This provides further earnings accretion to the current rough estimates.
Considering, large scale benefits and renewed opportunities in key export markets, the brokerage maintains its Buy call on GKEL with a revised PT of Rs. 865.
Promoter/FII Holdings Promoters held 11.06 per cent stake in the company as of 30-Jun-2023, while FIIs owned 16.2 per cent, DIIs 32.31 per cent.
