Gokaldas Exports Ltd. share price target

Due to withdrawal of MEIS (4% of turnover), realisations across textile companies will be under pressure for 1 to 2 quarters after which the management expects it to gradually improve. As on December-19, the company has a robust order book to be executed by Q1FY21E. Currently, the company is already operating at full utilisation levels and now plans to debottleneck and modernize current capacities as well as add manufacturing lines through brownfield expansion resulting in ~13% rise (Cost: Rs 200m). Total capex for Greenfield expansion at Andhra Pradesh and Madhya Pradesh is Rs 650m (25%: to be funded by TUF loan) and is...

Post results, we adjust our estimates for IND-AS 116 and revise our gross margin assumptions downwards by 150bps in FY20E and 50bps in FY21E due to change in product mix. We expect revenues to grow at CAGR of 18.1% to Rs 16.4bn and adj PAT at 49.1% to Rs 708m over FY19-21E. At CMP, the stock is trading at 9.5FY20E and 4.9x FY21E EPS estimates of Rs 8.6 and Rs 16.5 respectively. We...

Gokaldas Exports (GEXP) is a leading apparel exporter since 1979 with marquee clientele across USA, Canada, Europe, Japan, Russia, Middle East, South Africa and South America. It has 16 facilities with a capacity to manufacture 30m garments pa. Originally promoted by the Hindujas, it was later sold to Blackstone in 2008. During the Blackstone era, the management focus got diluted, operational efficiencies...

Gokaldas Exports (GEXP) is a leading apparel exporter since 1979 with marquee clientele across USA, Canada, Europe, Japan, Russia, Middle East, South Africa and South America. It has 16 facilities with a capacity to manufacture 30m garments pa. Originally promoted by the Hindujas, it was later sold to Blackstone in 2008. During the Blackstone era, the management focus got diluted, operational efficiencies...