JM Financial retains Buy on Gokaldas Exports; target price Rs 1,265

JM Financial maintains Buy call on Gokaldas Exports with an unchanged target price of Rs 1,265. The current market price of Gokaldas Exports is Rs 923.15. The time period given by the analyst is a year when Gokaldas Exports price can reach the defined target. Gokaldas Exports, incorporated in 2004, is a Small Cap company with a market cap of Rs 6927.83 crore) operating in the Apparels sector.

Gokaldas Exports' key products/revenue segments include Textile Apparels, Export Incentives, Accessories and Job Work for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 1034.86 crore, up 3.41% from last quarter Total Income of Rs 1000.78 crore and up 26.52% from last year same quarter Total Income of Rs 817.97 crore. The company has reported net profit after tax of Rs 52.86 crore in the latest quarter.

The company's top management includes Mr.Mathew Cyriac, Mr.Sivaramakrishnan Ganapathi, Mr.Sundararajan Poorana Seenivasan, Mr.Prabhat Kumar Singh, Mr.George Varughese, Mr.Rama Bjiapurkar, Mr.Shivanandan Ashoke Dalvie, Mr.Pavitra Rajaram. Company has MSKA & Associates as its auditors. As on 31-03-2025, the company has a total of 7 crore shares outstanding.

Investment Rationale
Gokaldas Exports expects near-term (2-2.5 quarters) challenges as higher costs will be borne by suppliers and retailers simultaneously. Though, this additional cost is expected to be passed on to the end-customers eventually, leading to a recovery in margins in 2HFY26. The company also witnessed some impact in order book for 2QFY26 but expects it to recover post some clarity on tariffs in July (end of 90-day pause). The company believes that in a case where tariffs sustain at 10%, additional costs will be shared amongst retailer, supplier (Indian exporters) and end-consumers. Even if tariffs are reinstated to the initial levels with India at ~26%, Indian players remain well-placed given higher tariffs to be faced by other countries like Vietnam, China, Bangladesh etc. In both these situations, additional cost is expected to be passed on to the end-consumer over time. The Company plans to take a decision on BTPL merger soon. If approved, merger is expected to be completed in next year. The longer term seems favourable with a continuing shift of global sourcing away from China given higher tariffs, supplier consolidation towards efficient and well capitalized players, and supply-side instabilities in several countries. Gokaldas exports remain JM Financial's top pick in the textile space. They reiterate BUY with an unchanged target price at Rs 1,265.

Promoter/FII Holdings
Promoters held 9.38 per cent stake in the company as of 31-Mar-2025, while FIIs owned 25.79 per cent, DIIs 36.82 per cent.