Sharekhan's research report on Gokaldas Exports
Gokaldas Exports (GKEL) delivered strong LFL performance in Q4FY25 with revenues growing 17% y-o-y and EBITDA margin rising 76 bps y-o-y to 14.4%. Consolidated (including acquisitions) revenue/adjusted PAT grew by 25%/4% y-o-y respectively. Management guided that Q1FY26 volumes are already secured, while Q2 order book is filling up at a slower rate amid tariff uncertainties. It eyes a ~15% consolidated revenue growth for FY26 despite the uncertainties. Short-term challenges are expected to impact margins for the next few quarters (~200 bps decline expected). A recovery in margins is likely from Q3FY26 (more clarity to emerge post the 90-day pause in tariffs). Stock has corrected 26% from recent highs and trades at 28x/18x its FY26E/FY27E EPS, respectively. even-pillar strategy to accelerate profitable growth through focus on core brands, premiumisation, category expansion, portfolio rationalisation, distribution channel, M&A strategy and cost optimisation.
Outlook
We maintain our Buy rating with an unchanged PT of Rs. 1,140.
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