DINESH

Gokaldas Exports

Industry: Textiles
Latest CMP 784
Today's Change ▲ 0.08%
52-Week High / Low 949 | 542
Price Date: 14-Aug-2026
Recommendation Buy
Target Price 1,641
Expected Upside 44.7%
Forecast Horizon 2 Years
Historical CAGR 4.8%
1,000 Invested 15-Aug-2006
Today's Value 2,545
Investment Period 20 Years

Stock Snapshot

Post Results Return
-4.6%
Mild Negative Re-rating
1-Year Target Price
1,510
2-Year Target Price
1,641
52-Week High / Low
949 / 542
20-Day Return
-7.3%
Market Cap (Cr.)
5,743
Current PE
65.7
P/BV Ratio
2.7
Dividend Yield
0.1%
Industry PE
32.0

Price Performance

Basis of our Recommendation

Gokaldas Exports has demonstrated a robust growth trajectory, bolstered by management's strategic initiatives and a favorable market outlook. Recent earnings calls highlight a strong order book and optimism surrounding capacity expansions in Jharkhand and Karnataka, which are expected to enhance revenue streams. The integration of the Bombay Rayon business is anticipated to significantly contribute to profitability by FY27, while the company's focus on higher-value product segments positions it well against competitive pressures. Vista's financial outlook reflects stable revenue growth of 10-12% for FY27, supported by these developments. However, challenges such as rising raw material costs and geopolitical risks, particularly related to the U.S.-Iran situation, could impact margins. The textiles industry is experiencing steady growth, with a forecast CAGR of 4.64%, which aligns with Gokaldas' strategic positioning. Over the next 12-24 months, key opportunities include the potential extension of the AGOA agreement and new FTAs, while watchpoints include execution risks in capacity ramp-up and ongoing inflationary pressures. Overall, Gokaldas is well-positioned to leverage industry tailwinds, although vigilance is required regarding external economic factors

👍 Why We Like This Stock

  • Strong order book visibility and strategic capacity expansions are expected to drive revenue growth
  • The integration of the Bombay Rayon business is projected to enhance profitability significantly
  • Potential extensions of trade agreements like AGOA could provide a competitive edge in the African market

Things To Watch Out For

  • Rising raw material costs and geopolitical tensions may pressure profit margins
  • Execution risks related to the integration of acquisitions and capacity ramp-up could hinder growth
  • Cautious investor sentiment may impact stock performance despite positive fundamentals

Key Parameters

Balance Sheet Strength
Stable Financial Structure
Market Share
Stable
Industry Outlook
Weakening
Analyst View
Strong Buy
Dividend History
Irregular
FII Holdings
Reducing

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 2,379 3,864 3,988 4,094 4,779
Profit Before Tax (Cr.) 132 189 172 220 258
PBT Margin 5.5% 4.9% 431.3% 5.4% 5.4%
Net Profit (Cr.) 96 146 91 165 194
Earnings Per Share 13.0 19.9 12.4 22.5 26.4

Analyst Recommendations

Broker Recommendation Target Price Date
ICICI Securities ▲ Buy 890 26-May-2026
Motilal Oswal ▲ Buy 1,110 13-Aug-2026
Consensus Recommendation ▲ Strong Buy
Consensus Target 1,000
Coverage 2 Analysts
Analysts' Viewpoint
Gokaldas Exports is capitalizing on India's structural competitiveness and strategic capacity expansions in Jharkhand and Karnataka, enhancing its growth trajectory. The integration of the BTPL business and the potential India-EU FTA are expected to unlock new market opportunities. However, regulatory uncertainty surrounding the AGOA poses a risk to its African operations. Management's focus on automation and product mix optimization aims to counter cost pressures, supporting a bullish outlook with a target of 15% growth.

Company Overview

Show Company Profile

Gokaldas Exports Limited designs, manufactures, and sells a range of garments in India. The company offers fashion wear, outerwear, bottom wear, casualwear, and sportswear, such as jackets, pants, tops/shirts, and other products for men, women, and children. It serves international fashion brands and retailers. The company also exports its products to approximately 50 countries worldwide. Gokaldas Exports Limited was incorporated in 1979 and is based in Mumbai, India.