The shares of this company tumbled by approximately 8 percent after the company found itself at the centre of tariffs. In this article, we will discuss about the reason that might have triggered this fall.
With a market capitalization of Rs 6,967 crores, the shares of Gokaldas Exports Ltd are currently trading at Rs 975 per share, down by 22.8 percent from its 52-week high of Rs 1,262.15 per share. Over the last five years, the stock has delivered a multibagger return of 3,298 percent.
Reason behind the fall
Gokaldas Exports, which derives 70 percent of its revenues from the US, will begin to incrementally pass on the effect of a 26 percent tariff increase to its customer base beginning this fall season. Since the existing summer stock is already in US warehouses, price increases should not take effect until September.
However, the company has recognized strong growth potential from the India-UK FTA expecting significant export boost as well as possibility of gaining a competitive edge over China in the next several years.
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Financial Highlights
Gokaldas Exports reported a consolidated revenue of Rs 3,864 crores in FY25, up 62.45 percent from Rs 2,379 crores in FY24. On a year-on-year basis, revenue grew 25 percent to Rs 1,015 crores in Q4 FY25 from Rs 812 crores in Q4 FY24. On a quarterly basis, revenue increased by 2.73 percent from Rs 988 crores in Q3 FY25.
The company reported a net profit of Rs 159 crores in FY25, up 21.37 percent from Rs 131 crores in FY24. However, on a year-on-year basis, net profit rose 20.45 percent to Rs 53 crores in Q4 FY25 from Rs 44 crores in Q4 FY24. On a quarterly basis, net profit increased by 6 percent from Rs 50 crores in Q3 FY25.
About the company
Gokaldas Exports Limited is a premier garment manufacturer situated in India. Gokaldas manufactures a variety of apparel, including fashion wear, outerwear, bottom wear, casualwear, and sportswear for men, women, and children. Gokaldas supplies a number of leading international fashion brands and retailers and exports to worldwide.
Written by Satyajeet Mukherjee
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