Gokaldas Exports (GOKEX)
CyclicalFairStock Score: 30/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹783.65 |
| Market Cap | ₹5,742.09 Cr |
| P/E Ratio | 58.83 |
| ROCE | 10.62% |
| ROE | 9.51% |
| Dividend Yield | 0% |
| Profit Growth | -7.65% |
| Debt/Equity | 0.59 |
| Sales Growth | 72.18% |
| Promoter Holding | 9.16% |
| 52-Week Range | ₹531 — ₹954.9 |
| Sector | Textiles & Apparels |
| Book Value | ₹294.97 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
At ₹725.70, Gokaldas Exports has a market cap of ₹4,685 crore. I start with earnings, not hope. The latest quarter net profit is only ₹15 crore on ₹979 crore sales — that is a razor-thin margin. Profit growth is down 70.98%, and sales are flat at -0.92%. A garment exporter in a fiercely competitive global market cannot command pricing power. This is a commodity-like business with low barriers to entry; buyers can shift orders to any low-cost country. So I need an exceptional balance sheet and management to compensate. What do I see? Return on equity is 9.51%, return on capital employed 10.62% — acceptable but not compensatory for the risk. Debt-to-equity of 0.46 is manageable, but with profits collapsing, fixed charges become heavier. The Piotroski F-Score of 3/9 tells me fundamentals are deteriorating. And promoter holding of only 9.16% is a red flag: those closest to the business have very little skin in the game. I want owner-operators with wealth aligned with mine; here, alignment is absent. The company pays no dividend, so I cannot even earn while waiting. At 40 times earnings and 2.59 times book value, the market is pricing in a strong recovery. Benjamin Graham would call this speculation, not investment. There is no margin of safety in a business whose earnings have fallen off a cliff. The 52-week range shows a volatile, beaten-down stock, but a falling price is not automatically cheap. I would rather miss this bounce than risk permanent capital. If earnings recover, management raises ownership, and margins return to respectable levels, I will revisit. Today, Gokaldas fails my test of a wonderful business at a fair price.
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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer