GOKEX share price is consolidating in a range of 335 to 380 levels for about 80 trading sessions. Abu Dhabi Investment Authority acquired 15 lakh equity shares in the company at an average price of Rs 349.75 a share on September 30. Gokex is an Apparel manufacturer and exporter in India that export to the world. The factors below will benefit this company and gokex share price target can be 500 from here in six to 12 months.
- The company is a big beneficiary of China+1 in textile industry.
- ~80% of the exports of apparel goes to US
- Production linked incentive (PLI) scheme will benefit this company from FY24 onwards.
- Strong order book in FY23
- Reported YoY revenue growth of 152% from INR 243 Crore in Q1FY22 to INR 612 Crore in Q1FY23.
- EBITDA gone up by four times from ~INR 20 Crore to INR 80 crore YoY during the same time.
- EBITDA margin is also projected to expand from 13.1% in FY23 to ~14% in FY24.
- The company plans a capex of ~INR 250 Crores in the next two years.
- The Gokex share price nse has the potential to reach the 500 level in six months if broader market support.
- One can buy at this level and on dip for short or medium term.
GOKEX Share Price Technical Analysis
GOKEX share price looks strong in its technical chart with a strong trading volume. The trading volume of the script has been above 100 DMA of volume for the last three days. The stock completed its correction and formed a bottom at the 335 level. On the daily chart, the GOKEX shares closed above all the short and long-term moving averages (20 DMA and 200 DMA). Momentum indicators ADX and MACD are looking bullish on the daily chart. The stock has the potential to reach an all-time high of 520 if the broader market supports it.
GOKALDAS EXPORTS LIMITED share price is trading at 18.3 Price to Earnings (PE) and available at 7.39 price-to-book (PB) value while sector PE is 131 PE and 5.79 PB. The debt-to-equity ratio of the company is at 0.09 times in FY22 declining from 1.17 times in FY21. The counter seems cheap in comparison to its sector with a low debt-to-equity ratio. It is a good stock to accumulate in correction.
The stock will quickly reach its all-time high of 520 level when it closes above its previous swing high of 380. The counter has strong support at 335 levels.
GOKALDAS EXPORTS LIMITED (GOKEX) Fundamental Analysis
Heade quartered in Bengaluru, India, Gokex is founded in the year 1979. The company is one of the world’s manufacturers and exporters of apparel. Gokex caters to eminent international customers in more than 50 countries. The company claims to be a one-stop solution for some of the world’s most recognized apparel brands. Gokex has employed over 32000 employees with over 20 production facilities in India.
The company is an ISO 9001:2000 Certified Company. It is one of the largest manufacturers/exporters of Outerwear Blazers and Pants (Formal and Casuals) Shorts Shirts Blouses Denim Wear Swim Wear Active and Sports Wear.
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GOKEX (GOKALDAS EXPORTS LIMITED) Share Price Financial Analysis
GOKALDAS EXPORTS LIMITED (GOKEX) delivered the highest quarterly revenue. Export revenue increased by 58.3% year over year. Deep engagement with key customers and augmentation of capacity enabled strong revenue growth. Total revenue has increased from INR 372.7 crores in Q4FY21 to INR 588 crores in Q4FY22 which is an increase of 57.8% during the period. Increased volume, efficient utilization of capacity, and continuous improvement in all operating levers contributed to growth. As per the latest presentation
EBITDA has gone up by 109.4% from INR 38 crores in Q4FY21 to INR 79.5 crores in Q4FY22. EBITDA margin has also gone up from 10.2% to 13.5% during the same period. Profit after tax has gone up by 280% from INR 16 crores in Q4FY21 to INR 61 crores in Q4FY22.
The total annual revenue of the company has also gone up by 47.9% from INR 1210.7 crores in Q4FY21 to INR 1790.3 crores in Q4FY22. This reflects strong financial numbers at both top and bottom line. With the economy opening up, the company will likely register higher revenue. Hence, both from a short and long-term point of view, this counter is expected to do well in terms of stock performance.
GOKALDAS EXPORTS LIMITED (GOKEX) is a small-cap company with a market cap of INR 2143 crores with a face value of INR 5. Return on capital employed is ~31.7 percent in Q1FY23 as against 27% in FY22 (Full year). The return on equity is ~23.5 percent in FY22. The debt-to-equity ratio is 0.05 in FY22 while it has further down to -0.24 in Q1FY23. GOKALDAS EXPORTS LIMITED is a zero-debt company. This data supports a strong valuation of this counter.
Promoters have not changed their holdings from Dec 2021 to June 2022 and it remained the same at 24.09 percent. However, DII has increased its holdings in the company from 26.24% in Dec 2021 to 27.2 % in March 2022. However, DII decreased their holdings to 25.46% in June 2022 quarter. FIIs have decreased their holdings slightly from 12.37 percent to 11.03 percent during this period, and further to 10.97 in June 2022 quarter.
Company Management:
Sivaramakrishnan Ganapathi is the chairperson and managing director of the company. He has been in the company since December 2017. Mr. Sivaramakrishnan is IIM – Bangalore alumni. Before joining Gokaldas export, he has been with Aditya Birla Minacs as president for about 5 years. He also served as Chief Operating in Idea cellular ltd for about 8 years. He has been the pioneer in driving the success of GOKEX.
