Gokaldas Exports Q3 Results Review - Margins Rebound Sequentially; Acquisition To Be EPS Accretive: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Report.Gokaldas Exports Ltd.’s Q3 FY24 revenue grew 6% YoY and 10% QoQ to Rs 5.5 billion (11% below our estimate), led by healthy 19% YoY volume growth at ~7.58 million pieces, signaling increased traction in order placements. Gokaldas Exports expects sales growth to gradually outpace inventory, as supply chain trends improve and customers liquidate a substantial portion of their inventories. Management is confident of sustaining its consolidated FY24 revenue (flat YoY) once it completes atraco acquisition in January 2024. However, FY24 standalone revenue could slightly disappoint on FY23 numbers. Management expects pricing to remain under pressure until Q3 FY25 (supply to exceed demand) and rebound from Q4 FY25 onwards (once the demand-supply situation improves). In the near term, consolidated Ebitda margin may slip, as atraco operates at lower Ebitda margin. However, management is confident that margins should normalize in next two-three years. Consolidated profit after tax may be strong as atraco benefits from tax-free status..We have slashed earning per share by 6%/13%, respectively and roll forward valuations to FY26E. Reiterating 'Buy' with a revised target price of Rs 1,119 (Rs 935 earlier), based on 25 times FY26E earnings (earlier 23 times). Key risks: High cotton prices and labour costs, geopolitical tensions, and inflation..Click on the attachment to read the full report:.Interglobe Aviation Q3 Results Review - Better Placed To Navigate Engine Challenges: Prabhudas Lilladher.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Gokaldas Exports Q3 Results Review - Margins Rebound Sequentially; Acquisition To Be EPS Accretive: Systematix

Gokaldas Exports Q3 FY24 gross margin expanded 739 basis points YoY and 277 basis points QoQ to 56% (our estimate 52.3%) on the back of soft raw material costs.

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Gokaldas Exports Q3 Results Review - Margins Rebound Sequentially; Acquisition To Be EPS Accretive: Systematix

Gokaldas Exports Q3 FY24 gross margin expanded 739 basis points YoY and 277 basis points QoQ to 56% (our estimate 52.3%) on the back of soft raw material costs.

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