New Research Reports

Given the company's strong growth potential backed by robust deal wins and superior execution capabilities, we maintain our BUY recommendation on the stock.

Recommendation: We expect the company to do well in the coming quarters as we expect demand to revive with prices moderating and inventory pressure subsiding. Therefore, we have revised our rating from HOLD to BUY with an upside of 15% from the CMP.

Gokaldas Exports’ (GEXP) Q3FY23 consolidated EBITDA at Rs632mn (up 7% YoY) was above consensus expectations. Revenues at Rs5.2bn were flat YoY (down 9% QoQ) due to soft demand scenario in the company’s end-market (US). Flat revenue growth was in line with similar growth in Indian apparel exports in Q3FY23.

We expect the company & sector to face weak demand for 2-3 more quarters although several strucutral changes and optionalities might enhance future prospects for company & textile sector. Therefore we upgrade the rating on the stock from SELL earlier to HOLD.

Gokaldas Exports (GEXP), under its new management (since FY18), has witnessed significant changes including marquee client additions, richer product mix, higher margins, etc., leading to robust shareholder returns.