Buy Gokaldas Exports, target price Rs 575: Emkay Global

Emkay Global has buy call on Gokaldas Exports with a target price of Rs 575. The current market price of Gokaldas Exports is Rs 401.9.

Gokaldas Exports, incorporated in the year 2004, is a Small Cap company (having a market cap of Rs 2466.13 Crore) operating in Apparels sector.

Gokaldas Exports key Products/Revenue Segments include Textile Apparels, Export Incentives, Scrap, Job Work for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 528.10 Crore, down -8.37 % from last quarter Total Income of Rs 576.32 Crore and up .77 % from last year same quarter Total Income of Rs 524.06 Crore. Company has reported net profit after tax of Rs 40.58 Crore in latest quarter.

The company’s top management includes Mr.Richard B Saldanha, Mr.Sivaramakrishnan Ganapathi, Mr.Prabhat Kumar Singh, Ms.Anuradha Sharma, Mr.Gautham Madhavan, Mr.Mathew Cyriac. Company has MSKA & Associates as its auditors. As on 31-12-2022, the company has a total of 6 Crore shares outstanding.

Investment Rationale
The impact of the slowdown due to higher inventory at retailers has led to sequential decline in revenue, from Rs 6.1bn in Q1FY23 to Rs 5.2bn inQ3FY23. The brokerage maintains BUY on Gokaldas, with unchanged Dec-23E TP of Rs 575/share, based on 18x PER.

Promoter/FII Holdings
Promoters held 20.97 per cent stake in the company as of 31-Dec-2022, while FIIs owned 14.65 per cent, DIIs 24.21 per cent.