Gokaldas Exports shares zoom 40% in 2 days; brokerage sees more upside

Shares of Gokaldas Exports surged for the second straight session on Wednesday, rallying as much as 19% to touch a day’s high of Rs 825 on the BSE. The apparel manufacturer’s stock has zoomed nearly 40% in the last two sessions, fuelled by the landmark India-US trade deal that has slashed tariffs on Indian goods to 18% from the earlier 50%.

According to ICICI Direct, the significant reduction in US tariffs positions Gokaldas Exports with a distinct first mover advantage, given that nearly 80% of its revenues are derived from the US market.

"Scale-up in India business post US tariff reduction... would help EBITDA margins to improve by 350bps over FY26-28E," it added.

According to the stock exchange filing, Gokaldas Exports reported consolidated revenue from operations of Rs 979 crore for Q3FY26, remaining largely flat compared to the same period last year. The company’s EBITDA stood at Rs 96 crore, a decline of 18% YoY, while Profit After Tax (PAT) dropped to Rs 15 crore.

"Q3FY26 was the first full quarter impacted by the steep 50% US tariff on India and the expiry of AGOA which provided duty-free access from Africa to the US," the company said in its investor presentation.

"The company's India operations continued to maintain its growth momentum, registering a growth of 8% YoY despite being impacted by a steep US tariff for the entire quarter," the company said.

"We expect normalisation of Africa business, increasing business from EU and UK driven by FTA... and reduction in tariff in US to 18% from 50% earlier will help revenues to grow at CAGR of 12% over FY25-28E," the brokerage noted.

Brokerage ICICI Direct has assigned a 'Buy' rating to the stock with a target price of Rs 930, implying a potential upside of nearly 13% from current levels.