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ICICI – Gokaldas Exports to Outperform

March 26, 2007

Gokaldas Exports Ltd (GEL), India’s largest garment exporter, has drawn up an extensive roadmap for growth. It is expanding capacity by setting up three new factories and diversifying its client and product mix. Big global retailers are consolidating their vendor base and the company will be optimally positioned to capitalize on the opportunity with its expanded capacities.

ICICI predicts Gokaldas Exporst to report FY08E EPS of Rs 24.99 and FY09E EPS of Rs 31.46 . ICICI values the stock at 10x its FY09E EPS of Rs 31.46, setting a 12-15 month price target of Rs 315, upside of 33% from current levels. Gokaldas Research Report is available here.

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