GOKALDAS EXPORTS LIMITED (GOKEX)

GOKALDAS EXPORTS LIMITED (GOKEX) share price is in Bullish Momentum – Stock on Move

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 309 level, moving up with strong volume. On the daily chart, the GOKEX shares closed above all the short and long-term moving averages (20 DMA and 200 DMA). GOKEX share price has been closing higher highs and higher lows for the last three trading sessions.

This is a clear signal of the momentum in the stock. Momentum indicators ADX and MACD are looking bullish on the daily chart. MACD histogram is also closing higher highs for the last three days. One may buy at this level or at dips for a 10 to 20% gain in the short term. Further, 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 348 levels. The average trading delivery percentage of the stock is above 30% for the last month. That reflects strong demand for this stock in the market.

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.

Suggested Reading – Read other momentum stocks CARBORUNIV and, Jamna Auto Industries

GOKEX 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.

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 ~18.8 percent while return on equity is ~23.5 percent. This data supports a strong valuation of this counter. Promoters have not changed their holdings from Dec 2021 to Mar 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. FIIs have decreased their holdings slightly from 12.37 percent to 11.03 percent during this period.

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.   

GOKEX Share Price Daily Chart
GOKEX Share Price Daily Chart

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