Arihant Capital has given Buy recommendation for Gokaldas Exports with a target price of Rs. 502 in its research report issued on Jan 24, 2022
Arihant Capital’s research report on Gokaldas Exports
Gokaldas Exports Q3FY22 Consolidated Revenue grew 17% QoQ to INR 521 Cr (+96% YoY). Q3FY22 EBITDA grew 20% QoQ to INR 56 Cr (+182% YoY). Q3FY22 EBITDA Margin expanded by 25bps QoQ to 11% (+324bps YoY). Q3FY22 PAT grew 5% QoQ to INR 30 Cr (+398% YoY). Q3FY22 PAT Margin expanded by 52bps QoQ to 8% (+246bps YoY). During the last nine months, the company has incurred CAPEX of INR 52 Crores towards capacity expansion and modernization. The Company has reduced its net debt to INR (71.3) Crores Vs INR 166.2 Crores as of FY21. As a result, the Finance costs for Q3FY22 were down 20% to INR 9 Cr.
We maintain a BUY rating with a TP of INR 502 (20x P/E on FY24E EPS), with a 23% upside. Gokaldas Exports is on a road to growth with it’s constant expansion initiatives and robust order book to back it up.