Multibagger alert: This apparel manufacturing company has weaved over 400% returns for its shareholders in two years

Multibagger alert: This apparel manufacturing company has weaved over 400% returns for its shareholders in two years

Stock Recommendations
by 5paisa Research Team Last Updated: 2022-10-12T11:50:40+05:30

Meanwhile, the S&P BSE SmallCap index, of which the company is a part, has gained by 91.7% in the last two years.

Gokaldas Exports Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last two years. During this period, the company’s share price jumped from Rs 70.4 on 13 October 2020 to Rs 362.65 on 11 October 2022, an increase of 415% in the two-year holding period. 

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 5.15 lakh today. Meanwhile, the S&P BSE SmallCap index, of which the company is a part, has gained by 91.7% in the last two years.

In the two-year timeframe, the company’s consolidated topline grew by 30% to Rs 1822.10 crore in FY22. Further, the PAT grew 285% to Rs 117.08 crore in FY22. In the recent quarter Q1FY23, on a consolidated basis, the company’s net revenue increased by 153.41% YoY to Rs 610.63 crore. Similarly, the net profit came in at Rs 39.39 crore as against a net loss of Rs 2.5 crore in the corresponding quarter last year.

Established in 1979, Gokaldas Exports is the largest manufacturer and exporter of apparel in India. With more than 20 production units and 32,000 direct employees, the company exports to more than 50 countries across the world.

On the relative valuation front, the company is currently trading at a TTM PE of 13.81x against the industry PE of 29.83x. In FY22, the company delivered an ROE & ROCE of 24% and 22%, respectively. 

Today, the scrip opened at Rs 359.95 and has touched a high and low of Rs 373.95 and Rs 359.95, respectively. So far 40,751 shares have been traded on the bourses.

At 11.22 am, the shares of Gokaldas Exports Ltd were trading at Rs 361.15, a decrease of 0.41% from the previous day’s closing price of Rs 362.65 on BSE. The stock has a 52-week high and low of Rs 519.55 and Rs 186.05, respectively on BSE.

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