India's Largest Apparel Exporter Stock Gave 484.97% Return In 3-Years, Emkay Global Sees Upside Of 55.8%

Emkay Global has asked investors to buy the stock of India's largest apparel manufacturer and exporter, Gokaldas Exports. Based on the estimates of analyst of the stock broking firm, a potential gain of 55.8% can be earned from the stock of the small cap company. In three years share price of the company has grown up massively by upto 484.97% in three years. The company recently posted a profit growth of 35% on yearly basis for Q3FY23. Looking at the quarterly numbers the analysts of brokerage has done evaluated the stock.

Buy share of Gokaldas Exports, with a price target of Rs 575

Emkay Global feels the stock price of Gokaldas Exports will surge to Rs 575 per share. From current market price, it could surge by 54.67%. Brokerage's buy rating is based on the performance and outlook of the company. "Globally, most garment-consuming markets are passing through uncertain times. Under such a scenario, Gokaldas posted flat y-o-y sales for Q3FY23, but higher EBITDAM resulted in ~7% growth in EBITDA. This along with increased other income and lower tax led to PAT growth of 35% YoY. For 9MFY23, PAT stood at Rs 1.2 billion vs. Rs 560 million YoY. Over the past few years, contribution from high ASP products (ASP >Rs450) has increased, from 49% in FY19 to 88% in FY22. A better product mix (higher proportion of outerwear at 41% in FY22 vs. 23% in FY18) has also contributed to improvement in the company's financials. Gokaldas has focused on building a strong customer base by virtue of continual engagement via its quality resource and infrastructure. We maintain BUY on Gokaldas with an unchanged Dec-23 target price of Rs 575 per share, based on 18x PER. During FY22-25E, we believe Gokaldas will report a 24% EPS CAGR with ~18% RoE."

Share price movement of Glokaldas Export

In over a year, the stock price declined by 2.56%, but it was up by 11.65% in 6 months, and massively surged by 485.84% in 3 years. The current market price of Glokaldas Export's stock is Rs 371.37 per share, while its 52 week high and lows is at Rs 519.55 and Rs 301.10 per share.

About Glokaldas Exports

Glokaldas Exports was established in 1979, and over the years has evolved to become the world's most recognized apparel brand. It is one of the largest apparel manufacturer and exporter in India. It has an annualised turnover of USD 250 million, it exports to more than 50 countries. Approximately 32,000 people across 20+ production units along with usage of 15000+ machinery work together to ensure that the exports are ready for next fashion. The current market capitalisation of this mid cap company is Rs 1,734.03 crore.

Disclaimer

The stocks have been picked from the brokerage report of Emkay Global, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.