Sharekhan's research report on Gokaldas Exports
Investment on capacity expansion, a better product mix and sustained client additions will help the company post double-digit earnings growth (PBT CAGR at 20% over FY23-25E) riding on favorable industry tailwinds in the medium to long run. Capex of ~Rs. 370 crore over FY22-24E is expected to generate revenues of Rs. 1,100-1,300 crore (asset-turnover at ~3.0-3.5x). EBIDTA margins would consistently improve in the coming years. The company is likely to generate cumulative FCF of close to Rs. 180 crore over the next two years; RoCE will stand high at ~24% versus 22.5% in FY23.
Outlook
We initiate coverage on Gokaldas Exports (GKEL) with a Buy assigning a target price of Rs. 635. Stock trades at 18x/14x its FY24E/FY25E earnings.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
