Gokaldas Exports extends gains on commencement of operation at new unit


Shares of were up 5 per cent at Rs 208.60 on the BSE in intra-day trade on Monday after the company announced that it has commenced commercial production at its new manufacturing unit in Tumkur, Karnataka. On achievement of full ramp up and productivity, the unit will contribute about 4.5 per cent to its current capacity.


The stock today was trading higher for the third straight day, up 14 per cent during the period. It had hit a record high of Rs 236 on August 9, 2021. At 12:18 pm, was trading 3 per cent higher as compared to 0.27 per cent rise in the S&P BSE Sensex.





The company is currently operating at peak utilisation levels with robust order book for the next six months. To cater to the strong demand, it has planned a capex of Rs 120 crore over the next two years that will have potential to generate incremental revenue worth Rs 450 crore (asset turn: ~4.0x), ICICI Securities said in a note.


Indian textile export is at the threshold of a strong growth on the back of a vibrant retail stores and e-commerce demand in key like the U.S. and Europe.


With China’s export share on a decline, the opportunity for India is ripe. India’s share so far has been small in the global apparel trade. With large brands realigning their supply chain to de-risk from the effect of COVID-19, and looking at a more balanced approach for sourcing, this could prove to be an excellent opportunity for Indian exporters.


Moreover, the Indian government has announced continuation of the Rebate of State and Central Taxes and Levies (RoSCTL) up to FY2023-24, which provides clarity to exporters and pushes for growth in the sector over a longer-term period. Additionally, the Production-Linked incentive (PLI) scheme could boost growth in the industry as well.


The company has a strong order book and is in the process of augmenting its capacity over the near term, to meet demand and clear backlog of production from the first quarter of FY2021-22. As per the annual report, the company anticipates a substantial revenue growth in FY2021-22 in line with these trends.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

Share Market Today
Logo