Buy Gokaldas Exports of Rs 575: Emkay Global Financial

Emkay Global Financial is bullish on Gokaldas Exports has recommended buy rating on the stock with a target price of Rs 575 in its research report dated February 14, 2023.

Broker Research

February 16, 2023 / 19:08 IST

26 Aug, 2025 12:21

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Emkay Global Financial's research report on Gokaldas Exports

Good show in a difficult environment: Globally, most garment-consuming markets are passing through uncertain times. Under such a scenario, Gokaldas posted flat y-o-y sales for Q3FY23, but higher EBITDAM resulted in ~7% growth in EBITDA. This along with increased other income and lower tax led to PAT growth of 35% YoY. For 9MFY23, PAT stood at Rs1.2bn vs. Rs560mn YoY (Q1FY22 posted a marginal loss due to Covid-19). Management expects a sequential improvement in revenue going forward: The impact of the slowdown due to higher inventory at retailers has led to a sequential decline in revenue from Q1FY23 (Rs6.1bn) to Rs5.2bn in Q3FY23. Management indicated Q4FY23 will see sequential growth and H2FY24 will be better than H1FY24. US retail sales have shown resilience till now.

Outlook

We maintain BUY on Gokaldas with an unchanged Dec-23 TP of Rs575/share, based on 18x PER. During FY22-25E, we believe Gokaldas will report a 24% EPS CAGR with ~18% RoE. Risks include significant slowdown in retail sales in US and other parts.

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