Revamped focus of top management, enhanced capacities, a better product mix along with acquisition of Atraco and Matrix will aid Gokex to strengthen its position in the key export markets. FTA with UK and reciprocal tariff by US can be a long-term opportunity to drive consistency in the performance. We recommend Buy on the stock assigning price target of Rs1,005.
Gokaldas Exports (Gokex), incorporated in 1979, is one of India’s largest manufacturers and exporters of apparel, exporting it to 50+ countries. Its vertical integrated business model makes it a one stop destination for leading apparel brands. Following the acquisition of Atraco and Matrix, Gokex currently has over 34 production units that can produce about 90 million garments per annum (p.a).