Multibagger stock: Gokaldas Exports shares up 37% in 4 days, 108% in 2023 so far

Gokaldas Exports shares climb 11 per cent in Wednesday's trade, taking its four-day rally to 37 per cent.  The stock is news as the company has expanded its global presence through a $55 million acquisition of a Dubai-based apparel maker Atraco Group through its wholly owned subsidiaries. Atraco has assets in UAE and Africa.

The stock rose 10.98 per cent to hit a high of Rs 817.20 on BSE. It jumped 33 per cent since the Atraco announcement and a total 37 per cent in four sessions.  Overall, the scrip has rallied 108 per cent in 2023 so far.

Gokaldas Exports said it operated in a challenging environment over the last five years but relentlessly stayed focused on growth. In a presentation, it said company’s steady focus on organic growth by emphasising strong customer relationships, operations excellence, and judicious capital investments resulted in significant progress in all operating and financial performance indicators, delivering a healthy ROCE and strong free cash flow.

Gokaldas Exports said it seeks to significantly expand its global footprint, widen its customer base, and increase its production capacity. The company said a total of $45 million of the Atraco transaction will be paid upon closure of the transaction and the remainder at the end of March 2024.

Gokaldas Exports said it has the opportunity to augment its growth with inorganic measures and proceeded carefully in identifying opportunities that are strategically relevant, possess a good complementary customer base, are operationally strong, and are a leader in its own sphere.

Atraco recorded $107 million revenue in 2022. "Atraco operates with a network of four manufacturing units in Kenya and one in Ethiopia producing about 40 million garments annually. Atraco Group's revenue is approximately $107 million with a profit after tax of $7.2 million for the calendar year 2022. The equity value of the transaction is $55 million and the same will be funded by a mix of debt and internal accruals. The transaction will comprise of acquisition of shares and assets and will be subject to customary regulatory approvals. It is expected to be closed by Q3 FY24 (Oct-Dec 23)," it said said.

 

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