Sharekhan's research report on Gokaldas Exports
Gokaldas Exports’s (GKEL’s) LFL performance was good with revenues growing strongly by 28% y-o-y to Rs. 652 crore, EBIDTA margins stood flat y-o-y at 11%. Incremental volumes from new capacity in MP and better performance by acquired entities will help performance to substantially improve in H2. Consolidated EBIDTA margins to improve by 100-150 bps in H2. Strong performance expected in FY2026. GKEL’s standalone entity is generating RoCE of 25%, with improved performance of acquired entities, consolidated RoCE is expected to improve to 20% in FY27 from current 15%.
Outlook
Stock has corrected by 26% from its highs and trades at 32x/20x/16x its FY25E/FY26E/FY27E earnings, respectively. We maintain our Buy rating with an unchanged PT of Rs. 1,140.
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