ICICI Direct recommends Gokaldas Exports with a target price of Rs 570

We like GEL as a structural long term story to play the apparel export space. We maintain BUY recommendation on the stock. We value GEL at Rs 570 i.e. 19x FY24E EPS.

With an annual capacity of 36 million+ pieces, Gokaldas Exports (GEL) is one of India’s top clothing exporters. Gokaldas concentrates on producing complicated garmenting items, which helps company stand out from other price-driven competitors. ‘GAP’ and ‘H&M’ are key income contributors, with an impressive clientele of prominent international brands. 80% of sales are generated in the United States. Gokaldas has scripted a successful recovery of its business operations under the direction of the new MD (after Blackstone’s withdrawal in FY18).