Gokaldas Exports Ltd BUY

Equity: 17CR       Book value 35.53.       Mcap:321 cr             C.M.P :92.50RS

Gokaldas Exports Ltd (Gokaldas Exports) was incorporated in 1979 and commenced its export operations in the same year. GEL was incorporated in 1979. Later in 2005, it got converted into a public limited company The IPO will be priced at Rs 425.00 a share through a 100-per cent book-building route Gokaldas public issue oversold 42 times. Shares of Gokaldas Exports made debut on the BSE at Rs 566 on April 27, 2005, a premium of 33.18 per cent to the issue price of Rs 425.  2007The Comp. has splits its face value from Rs.10/- to Rs.5/-.

Blackstone had acquired 50.1% stake in Gokaldas Exports from the Bangalore-based Hinduja family for $116 million in August 2007. Later, the PE fund increased its holding to 68.27% through an open offer with an investment of about $45 million. Blackstone took control of the management by appointing its nominee Gautam Chakravarti as the CEO of the export house. Amit Dalmia, another Blackstone official, was placed in charge of finance as well as functions such as marketing and business expansion. Blackstone Group LP has acquired at a price of 275.00Rs

 The company, a Four Star Export House, is an export-oriented apparel manufacturer. The group companies of Gokaldas Exports include Gokaldas India and Unique Creations. Gokaldas Exports is engaged in designing, manufacturing, and exporting a wide range of readymade garments for men, women and children Gokaldas Exports’ principal products include outer wear and bottom wear. The company’s outerwear product portfolio includes both sportswear and winters wear whereas bottom wear includes casual pants, chinos, linen trousers, denim jeans etc. Its product range also includes blazers and pants (formal and casuals), shorts, shirts, blouses, denim wear, swim wear, active and Sportswear.

Company has 13 subsidiary companies. The name of these companies is as follows: All Colour Garments Private Limited, Deejay Trading Private Limited, Glamourwear Apparels Private Limited, Madhin Trading Private Limited, MagentaTrading Private Limited, Rafter Trading Private Limited, Rajdin Apparels Private Limited, Reflexion Trading PrivateLimited, Rishikesh Apparels Private Limited, Seven Hills Clothing Private Limited, SNS Clothing Private Limited,Vignesh Apparels Private Limited and Robot Systems Private Limited

                                          Plant Location

1. Atlantic Apparels – III – Hyderabad					17. International Clothing Company-IV
Survey No. A-7/1, Nacharam, Rangareddy					Survey No.112,A Block, Near Bhandary
District, Hyderabad. Andhra Pradesh					Factory, 7th Mile, Hosur Road,
2. Carnival Clothing Co, No.2/A-1,					Bengaluru-560 068, Karnataka
Chikkaveeranna Road Cross, Bannimantap Etn,					18. Intex I, No.31, Magadi Road,
Mysore – 15, Karnataka					Bengaluru-560 023, Karnataka
3. Carnival clothing company-II					19. The Intex II, #26, 2nd Cross, 3rd Main Road,
Benganur Village Bangarpet - KGF Road,					Industrial Suburb, Yeshwanthpur,
Bangarpet, Karnataka					Bengaluru-560 022 Karnataka
4. Dressmaster Suits, No.76/77, 6th Main,					20. The Intex V, #13 & 4, 1st A Cross
3rd Phase, Peenya Industrial Area,					Kamakshipallya, Magadi Main Road
Bengaluru - 560 058, Karnataka					Bengaluru - 560 079, Karnataka
5. Euro Clothing Co - I, No.122/1,					21. Indigo Blues, Plot No-2, KIADB Industrial Area,
Doddabidarakallu Village,					Doddaballapur - 581 203. Karnataka
Yeshwanthpur – 560 022					22. J.D.Clothing Company,
Bengaluru. Karnataka					No.9, Rajajinagar Industrial Estate,
6. Euro Clothing Company II					Bengaluru-560 010. Karnataka
T.B.Road Srirangapatna, Mandya,					23. Luckytex Unit-I
Karnataka					No.17/A-34/A-1 Industrial Suburb,
7. Gokaldas Exports Ltd, R &D -I					Bengaluru, Karnataka
No.70, Mission Road,					24. Luckytex-III, No.17/A-34/A-1,
Bengaluru-560 027, Karnataka					Industrial Suburb, Yeshwanthpur,
8. Gokaldas Exports Ltd, R &D - III					Bengaluru-560 022. Karnataka
# 76/1, II & III Floor, Mission Road,					25. Sri Krishna Industries, No.25/26, 3rd Main Road,
Kalingarao Road, Bengaluru-560 027. Karnataka					Industrial Suburb, Yeshwanthpur,
9. Gokaldas Exports Ltd					Bengaluru-560 022. Karnataka
Sez Division, Plot No.6/1, Phase - 2,					26. Triangle Apparels-I, Site No.804/75,
Mepz - Sez, Tambaram, NH - 45,					7th Ward, Near Tilak Park Police Station,
Chennai - 600 045. Tamil Nadu					Jayapure Road, Tumkur - 01. Karnataka
10. Global Garments -Unit-I					27. Triangle Apparels-II, No.106/5,6,7,8,9,
No.17/1-38/4 Industrial Suburb,					Rachenahalli, Arabic College Post,
Bengaluru, Karnataka					Bengaluru-560 045. Karnataka
11. Global Garments-III, No.44, 3rd Cross,					28. Triangle Apparels – VI, # 25/26,
Industrial Suburb, Yeshwanthpur,					3rd Main Road, Industrial Suburb,
Bengaluru-560 022. Karnataka					Yeshwanthpur, Bengaluru – 22, Karnataka
12. Gokaldas India, No.21C & 21B, Survey					29. The Unique Creations, No.44, Industrial
No.34,35,36 & 37, Nallakadaranahalli,					Suburb, 3rd Main, II Stage, Yeshwanthpur,
Peenya II Stage, Industrial Area, Peenya,					Bengaluru-560 022, Karnataka
Bengaluru-560 058. Karnataka					30. Venkateshwara Clothing Company – II
13. Hinduja Proc & Fins Unit, No.2, 5th Cross,					No.10, KHB, Colony Industrial Area,
Mysore Road, Bengaluru-560 023. Karnataka					Yelahanka, Bengaluru - 64. Karnataka
14. Hinduja Sports Wear, No.73/19/5,					31. Wearcraft Apparels – I
Industrial Suburb, Yeshwanthpur,					No.17/1-38/4-1, Industrial Suburb,
Bengaluru-560 022. Karnataka					Yeshwanthpur, Bengaluru-560 022. Karnataka
15. International Clothing Company – I					32. The Wearwel II
#B2, B3 & B4, Indl Estate,					Industrial Estate N.H-206, Tiptur,
Madanapalli -517 325. Andhra Pradesh					karnataka
16. International Clothing Company-II

Operates from 32 units spread across states of Karnataka, Tamil Nadu and Andhra Pradesh and has installed capacity to produce more than 2.5 million garments per month. GEL provides employment to 33,000 people.

                                         Quarterly Results

  

Narration	13-Jun	13-Sep	13-Dec	14-Mar
Quarter	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr
Sales	241.88	265.43	235.96	306.73
Operating Profit	-2.45	20.67	23.33	28.04
Other Income	2.15	11.37	2.34	0.48
EBIDT	-0.3	32.04	25.67	28.52
Interest	10.61	9.41	8.31	11.63
Depreciation	6.22	6.24	6.34	6.05
Tax	0	0	0	0.4
Net profit	-16.37	1.8	1	6.36
Adjusted EPS in	-4.76	0.52	0.29	1.85

                                                    Annual Results

Narration	11-Mar	12-Mar	13-Mar	14-Mar	15-MarE
Sales	1135.84	1002.07	969.56	1050	1250
Operating Profit	-37.78	-65.12	-46.69	69.59	93.75
OPM	-3.33%	-6.50%	-4.82%	6.45	7.50%
Other Income	7.87	4.21	3.32	16.34
EBIDT	-29.91	-60.91	-43.37	85.93	93.75
Interest	36.34	39.42	37.53	39.96	42
Depreciation	35.14	33.02	30.97	24.85	27
Profit before tax	-101.39	-133.35	-111.87	21.12	24.75
Tax	-4.57	0	0.01	0.4	0.25
Net profit	-88.08	-132.76	-111.88	-7.21	24.5
Adjusted EPS in	-25.6	-38.59	-32.52	-2.1	14.25

 

 

 

 

 

 

 

 

 

 

This year forex loss at 28cr vs 10.65 cr last year it shows clear turnaround   Black stone sold 5 % at 83.90 to ICICI bank (investments). it shows come corporate development  going to happen . Expecting 150rs in next 3 months with a stop loss of 82 Rs   

 Reasons for expecting increased profitability.......increase in Chinese’s wages, and also china focusing more on hi tech exports. Bangladesh losing its tag as the preferred destination after the factory tragedy last year. Companies benefitting out of favorable exchange rate this year only as last year they were hedged at 52/53 levels.