Buy Gokaldas Exports; target of Rs 1045: Sharekhan

Sharekhan is bullish on Gokaldas Exports has recommended buy rating on the stock with a target price of Rs 1045 in its research report dated May 28, 2024.

Broker Research

June 12, 2024 / 13:43 IST

BUY

26 Aug, 2025 12:21

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Sharekhan's research report on Gokaldas Exports

Gokaldas Exports Limited’s (GKEL’s) Q4 numbers were good with like-for-like (LFL) revenue growth of 14% (largely volume led), while adjusted EBIDTA margins came at 14.4%. US retail sales grew 3% in Q1CY2024. Inventory de-stocking is in the last phase and the company expects 10% y-o-y growth in US garment imports in the current year. Volume growth momentum to sustain. EBIDTA margins of acquired entities - Atraco and Matix - should improve to 10.5% and 11% over the next two to three quarters. Post integration, EBIDTA margins of acquired entities should be close to GKEL’s standalone EBIDTA margins in next six quarters.

Outlook

Stock has corrected by 19% from its highs and trades at 32x/20x its FY25E/FY26E earnings. Recovery in US apparel market and rise in margins will act as key valuation triggers in the near term. We retain Buy with an unchanged PT of Rs. 1,045.

For all recommendations report, click here