Buy Gokaldas Exports; target of Rs 280: ICICI Direct

ICICI Direct's research report on Gokaldas Exports

Gokaldas Exports (GEL) is one of India’s leading apparel exporters with an annual capacity of 30 million pieces. Gokaldas focuses on manufacturing complex garmenting products that insulate it from other price based competition. Impressive clientele of leading international brands with ‘GAP’ and ‘H&M’ being major contributor to revenues. US contributes ~65% of sales Under the leadership of the new MD (post exit of Blackstone in FY18), Gokaldas has scripted a successful turnaround of its business operations

Outlook

We like GEL as a structural long term story to play the apparel export space. We maintain our BUY recommendation on the stock We value GEL at Rs 280 i.e. 15x FY23E EPS.