Dark horse stock of the day: Gokaldas Exports jumps 20% in early trade

The shares of Gokaldas Export Limited witnessed a significant surge today. The stock commenced trading at Rs 652, marking a 6.2% increase compared to the previous day’s closing price of Rs 613.60. During the intraday session, the stock exhibited a remarkable 20% surge accompanied by a significant trading volume.

Upon scrutinizing today’s share volumes, it becomes apparent that there has been a substantial increase of over 7.8 times in trading volumes compared to its average volumes on the BSE. As of writing this article, the shares of the company are up by Rs 122.70 or 20% and are trading at Rs 736.30 each on the BSE.

The stock’s 52-week high and low are Rs 736.30 and Rs 325.70, respectively. Possessing a market capitalization of Rs 4,466 crore, the stock has showcased outstanding performance in recent periods, yielding a modest 39% return in the last month and an impressive 1176% return in the past three years.

Financial Performance

In the June quarter of FY24, the company’s revenue from operations experienced a decrease of 15.72% YoY, going from Rs 611 crore to Rs 515 crore. The operating profit of the company fell from Rs 72 crore to Rs 60 crore, and on a sequential basis, it decreased from Rs 70 crore to Rs 60 crore. The operating profit margin stood at 12%.

Meanwhile, the net profit of the company amounts to Rs 33 crore, against a profit of Rs 47 crore in the last March quarter of FY23.

The company’s return on capital employed (ROCE) and return on equity (ROE) are at 23% and 21%, respectively. The book value of the company is Rs 146, which means the stock is trading at a price-to-book value of 5 times in the market, whereas the price-to-earnings ratio is 27.7 times.

Business Overview 

Gokaldas Exports Limited is an India-based apparel manufacturer and exporter. The company specializes in a wide range of apparel products, including outerwear, activewear, and fashion wear. Its exports reach fashion brands and retailers across all continents, facilitated by a delivery network spanning approximately 50+ countries. The company offers products across various categories, including high-fashion garments, outerwear, bottomwear, casualwear, and sportswear.

Here is the chart presentation of the company’s shares on the weekly time frame:

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.