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    Gokaldas Exports

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    siva k
    Gokaldas Exports Ltd is one of the largest apparel manufacturers and exporters in India with 23 factories producing 21 million garments annually for over 30 countries. The company went through difficult times in the late 2000s due to economic downturns but has new leadership and has reduced debt, reporting over 100% higher profits in the most recent quarter. The document recommends investors buy Gokaldas stock as an emerging turnaround opportunity.

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    Gokaldas Exports

    Uploaded by

    siva k
    72 views1 page
    Gokaldas Exports Ltd is one of the largest apparel manufacturers and exporters in India with 23 factories producing 21 million garments annually for over 30 countries. The company went through difficult times in the late 2000s due to economic downturns but has new leadership and has reduced debt, reporting over 100% higher profits in the most recent quarter. The document recommends investors buy Gokaldas stock as an emerging turnaround opportunity.

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    Gokaldas Exports Ltd is one of the largest apparel manufacturers and exporters in India with 23 factories producing 21 million garments annually for over 30 countries. The company went through difficult times in the late 2000s due to economic downturns but has new leadership and has reduced debt, reporting over 100% higher profits in the most recent quarter. The document recommends investors buy Gokaldas stock as an emerging turnaround opportunity.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    72 views1 page

    Gokaldas Exports

    Uploaded by

    siva k
    Gokaldas Exports Ltd is one of the largest apparel manufacturers and exporters in India with 23 factories producing 21 million garments annually for over 30 countries. The company went through difficult times in the late 2000s due to economic downturns but has new leadership and has reduced debt, reporting over 100% higher profits in the most recent quarter. The document recommends investors buy Gokaldas stock as an emerging turnaround opportunity.

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    Premium: Gokaldas Exports Ltd: Fashion Redefined!

    Dated 14
    November 20 and Vol.XXX No.3| 

    (Code: 532630) (CMP: Rs.70) (FV: Rs.5)

    Bengaluru based Gokaldas Exports Ltd. (GEL) is one of the largest


    manufacturer and exporter of apparels with an annual turnover of around
    US $200 million. It has 23 factories with over 13,000 machines producing
    21 million garments every year and exporting them to over 30 countries.
    It’s state-of-art manufacturing facilities offer services to clients from
    laying, cutting, sewing, embroidery, etching etc. under one roof on the
    back of its multiple capabilities like trend forecasting, product
    engineering, fashion designing, style optimizing and industry innovation,
    which helps GEL retain marquee customers and reach out to potential
    clients and in new geographies.

    GEL, which was once owned by the Hinduja Group of Ashok Leyland
    fame, changed hands thrice in the last 10 years. In 2007, global private
    equity (PE) giant Blackstone acquired 70% from erstwhile promoters for
    Rs.676 crore paying Rs.275/share. The PE firm had bought it at peak
    valuation but GEL’s fortunes fell sharply with the economic downturn of
    2008-09 leading to the loss of orders from USA and Europe.

    Gokaldas’ downfall coincided with Bangladesh’s rise in garment exports


    when it expanded capacities four-fold. Unable to turnaround GEL, the PE
    firm took a 79% hair cut to exit its decade long investment and sold it to
    Mr. Mathew Cyriac, the former head of the same PE fund along with a few
    other investors in April 2018. Also, former COO of Idea Cellular has
    boarded GEL as the new MD the same year, after spending more than two
    and half decades working in various industries, running businesses in
    different countries, witnessing multiple business cycles and turning around
    underperforming business.

    GEL reported 111.21% higher PAT of Rs.8.66 crore for Q2FY21 as


    against Rs.4.10 crore in Q2FY20 despite lower income of Rs.344.89 crore
    ( ₹ 374.32 crore). Also, GEL reduced its net debt by  Rs.82 crore during the
    quarter to Rs.122 crore.

    Gokaldas, which had gone through a challenging and turbulent phase with
    issues on multiple fronts in the last decade, looks promising under the new
    management and can easily turn out to be a multi-bagger. Investors are
    advised to buy the Gokaldas Exports as an emerging turn-around stock at
    every decline followed by a broader market correction for double digit
    returns. Author Subramanian Mahadevan

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