Gokaldas Exports Limited

Consumer Cyclical — Apparel Manufacturing · NSE

₹719.00+₹26.80 (+3.87%)

DalalBaazaar Score

40 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Gokaldas Exports Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Gokaldas Exports Limited designs, manufactures, and sells a range of garments in India, the United States, Netherlands, Canada, the United Kingdom, Germany, India, and internationally.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees41,149

Annual revenue₹3,652 Cr

How does it make money?

Turns over ₹3,652 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 41,149 employees supports ₹8.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹8.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 8.9% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What is the outlook?

9 analysts covering the stock expect revenue to grow about 20.4% and earnings to grow about 58.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+20.4%

Est. earnings growth+58.4%

Analysts9

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +77% while net margin moved -67% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+77%

Margin effect-67%

DalalBaazaar Score

40/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 8.9% is below 10% — capital is not working hard
✗ ROCE has fallen by 13.3 points — returns are eroding
✗ EBITDA margin of 11.0% is thin — little cushion if costs rise
✗ Net margin of 2.5% is slim
• Revenue has compounded at 20.9% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

40/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

42/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

53.9x

3Y Median

38.0x

40 monthly readings · mean 38.7x · range 25.6x–59.6x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 42% above its 3y median of 38.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 22% below the peer median of 69.2x.

vs. its own history

Expensive

38.0x median over 40 months · +42%

vs. sector peers

Cheap

69.2x median of 4 peers · -22%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

16.0x

PEG

15.85

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 19.5% to 4.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 22.2% to 8.9% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 4 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 725% over 3 years, from ₹154 Cr to ₹1,273 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 343% against revenue up 77% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 198% against revenue up 77% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 42% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.1 points over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 21% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 22% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 13.1% to 11.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 343% against revenue up 77%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 42% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 19.5% to 4.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 16% a year✓ 20.9% CAGR
Latest reported year was 20.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹177 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

6 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹5,269 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

53.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.44x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹13.34

Profitable

Profitable on a per-share basis

ROE

4.6%

Weak

Weak capital efficiency

ROCE

8.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.59x

Low

Conservative leverage

Revenue Growth (YoY)

20.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

3.4%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹177 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

17.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

5.3%

Average

Average margins

Net Margin

2.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.48

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.03

Defensive

Steadier than the market

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

687.2 / 743.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

57.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,066 Cr	₹2,193 Cr	₹3,578 Cr	₹3,652 Cr	+20.9%
EBITDA	₹271 Cr	₹248 Cr	₹380 Cr	₹402 Cr	+14.0%
EBITDA Margin	13.1%	11.3%	10.6%	11.0%	—
PAT (Net Profit)	₹173 Cr	₹131 Cr	₹159 Cr	₹100 Cr	-16.7%
EPS	₹27.2	₹20.51	₹21.45	₹13.11	-21.6%
ROE	19.5%	10.1%	7.6%	4.6%	—
ROCE	22.2%	10.7%	11.1%	8.9%	—
Total Debt	₹154 Cr	₹805 Cr	₹845 Cr	₹1,273 Cr	+102.0%
Free Cash Flow	₹233 Cr	-₹866 Cr	-₹134 Cr	-₹177 Cr	—

🟢 Revenue has grown at 20.9% a year over 3 years.

🟢 EBITDA has grown at 14.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 13.1% to 11.0% over 3 years (-2.1 pts).

🔴 PAT (Net Profit) has shrunk at 16.7% a year over 3 years.

🔴 EPS has shrunk at 21.6% a year over 3 years.

🔴 ROE has fallen from 19.5% to 4.6% over 3 years (-14.9 pts).

🔴 ROCE has fallen from 22.2% to 8.9% over 3 years (-13.3 pts).

🔴 Total Debt has grown at 102.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹233 Cr to -₹177 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,354 Cr

Total Liabilities

₹2,194 Cr

Cash & Equivalents

₹135 Cr

Operating Cash Flow

₹52 Cr

Capex

-₹228 Cr

Shareholding (proxy)

Institutional Holding

53.5%

Insider Holding

12.6%

Corporate Actions

Ex-Dividend Date

13 Sept 2023

Analyst Consensus

Recommendations

9 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹954.67

+32.8% vs CMP

Target Range

₹800 – ₹1,110

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive3 mixed2 general

Textile Stocks To Buy: Gokaldas Exports To Arvind, Brokerage Bullish On THESE 3 Stocks On Healthy Valuation

Goodreturns, 17 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Compare GOKALDAS EXPORTS with

Equitymaster, 15 Oct

Textile stocks Gokaldas, Indo Count, PDS, Filatex soar up to 6%; here's why

Business Standard, 14 Oct

Earnings Miss: Gokaldas Exports Limited Missed EPS By 28% And Analysts Are Revising Their Forecasts

Simply Wall Street, 15 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Earnings call transcript: Gokaldas Exports Q1 2026 shares fall 4.7%

Investing.com, 12 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Gokaldas Exports Q1 profit jumps 7% as US tariff pressure eases

The Economic Times, 12 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth · Risk

WeakBusiness Quality · Profitability · Valuation

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑