Gokaldas Export Share Price Target at Rs 1,110: Motilal Oswal

Shalini Kakkad 18 August 2026

Motilal Oswal Financial Services has reiterated a BUY on Gokaldas Export, setting a target of Rs 1,110 against a ruling price of Rs 761, an eye-catching upside of about 46 percent. The brokerage frames the apparel exporter as a rare multi-country manufacturer riding India's improving tariff position, a resurgent African operation and a fabric arm on the cusp of turning profitable. First-quarter consolidated revenue vaulted 20.7 percent to about Rs 1,150 crore, and management has lifted its full-year growth guidance to 15 percent-plus. With margins poised to climb past 10 percent and earnings set to more than double, Motilal Oswal values the stock on 14 times FY28 estimated EV/EBITDA.

Motilal Oswal • BUY reiterated

Gokaldas Export: a multi-country weave with 46% of upside on the table

A stitched-together growth story that few peers can replicate — India tariff tailwinds, an African engine humming at 44 percent growth, and a fabric subsidiary limping toward breakeven. The analyst's wager is that the margin trough is now behind the company.

The call and the levels

Let me lead, as ever, with the numbers an investor actually trades on. Motilal Oswal has retained its BUY stance and pegged fair value at Rs 1,110 per share on 14 times FY28 estimated EV/EBITDA. Against the prevailing quote of Rs 761, that implies a generous 46 percent of headroom. The counter has swung between Rs 531 and Rs 955 over the past year, so the target sits well clear of the recent ceiling — an unabashedly constructive stance predicated on an earnings inflection rather than a re-rating alone.

Levels for investors

Parameter	Level
Recommendation	BUY (reiterated)
Current market price	Rs 761
Target price	Rs 1,110
Implied upside	~46 percent
52-week range	Rs 531 – Rs 955
Valuation basis	14x FY28E EV/EBITDA
Market capitalisation	~Rs 5,580 crore

Three engines, one growth story

What distinguishes Gokaldas is the breadth of its manufacturing base. The first quarter's 20.7 percent revenue surge to roughly Rs 1,150 crore was, in the analyst's words, broad-based across customers and geographies rather than beholden to a single account — a quality that lends the top line durability.

Engine 1 • India

Tariff tailwind at its back

India revenue rose 17.8 percent to about Rs 750 crore, comfortably outrunning the roughly 12 percent contraction in overall Indian apparel exports. An improved tariff standing versus rival sourcing hubs is drawing fresh inquiries from European and American buyers rebalancing away from China and Vietnam.

Engine 2 • Africa

The 44 percent runner

The African arm delivered 44 percent growth, buoyed by the continuation of AGOA trade preferences and low-cost competitiveness. Management is steering toward a dollar revenue target of about Rs 1,070 crore for FY27, with current visibility near Rs 1,000-1,025 crore (dollar receipts converted at roughly Rs 89).

Engine 3 • BTPL fabric

From loss to breakeven

The fabric subsidiary posted quarterly revenue near Rs 170 crore at a 50-53 lakh metres monthly run-rate, still bleeding an EBITDA loss of about 7.5-8 percent. A richer mix of linen and bottom-weight fabrics should drive breakeven by the third quarter, ahead of a planned merger into Gokaldas.

The margin recovery, quarter by quarter

The soft spot in the print was profitability. Consolidated EBITDA margin eased 40 basis points to 9.8 percent, weighed by wage inflation, dearer fuel and chemicals, costlier synthetic fabrics and elevated freight. Yet gross margin actually expanded 130 basis points to 52.4 percent, and management insists the wage shock — some Rs 20 crore in the quarter — has already been largely absorbed through efficiencies. Here is how the analyst maps the climb back above double digits.

1QFY27 / the trough

Margins bottom at 9.8 percent as minimum-wage hikes and logistics costs bite; only about 70 percent of dollar exposure is hedged at Rs 89, delaying the full currency benefit.

2HFY27 / the pivot

Product-mix upgrades, automation, higher utilisation and a shift toward lower-cost regions lift consolidated margin back into double digits; management guides FY27 EBITDA margin above 10 percent.

4QFY27 / the turnaround

Africa is expected to reach mid-to-high single-digit margins as it scales, while BTPL targets a mid-to-high single-digit EBITDA margin, having crossed breakeven earlier in the year.

FY26-28E / the arc

Cumulatively, Motilal Oswal models margin improvement of about 215 basis points, carrying consolidated EBITDA margin from 8.9 percent in FY26 toward 11.1 percent in FY28.

Capacity: 3,000 machines and a structural bet

The growth is asset-led and organic, with no marquee acquisition on the horizon. Existing plants in Bhopal, Karnataka and Ranchi are ramping, with Bhopal's second phase expected to approach full utilisation by the fourth quarter. Management intends to install around 3,000 additional machines, largely in low-cost regions, where every 1,000 machines can generate roughly Rs 175 crore to Rs 200 crore of revenue at steady state. Two greenfield facilities in Jharkhand and Karnataka carry a combined outlay of about Rs 100 crore and could contribute close to Rs 350 crore of revenue at steady state, chiefly from FY29. Longer term, an India-EU free-trade agreement could open a further seam of demand.

Earnings trajectory and the valuation case

The forecasts capture the inflection vividly. Motilal Oswal nudged its estimates higher on better visibility and now expects adjusted profit to more than double to about Rs 220 crore in FY27 and advance again to roughly Rs 310 crore in FY28, on revenue climbing from Rs 3,990 crore to Rs 5,750 crore. Return on equity, a lowly 4.7 percent in FY26, is seen recovering toward 10.3 percent by FY28. On those numbers the stock trades at about 27 times and 19 times forward earnings — hardly demanding for a business emerging from an earnings trough.

Key estimates at a glance

Metric	FY26	FY27E	FY28E
Sales (Rs crore)	3,990	4,790	5,750
EBITDA (Rs crore)	360	490	640
Adjusted PAT (Rs crore)	100	220	310
EBITDA margin (%)	8.9	10.3	11.1
Adjusted EPS (Rs)	13.7	27.9	39.4
RoE (%)	4.7	8.8	10.3

Risks to weigh before you buy

The counterweights

The bullish thesis rests on assumptions that could unravel. The single largest overhang is AGOA: any lapse in the African trade preference would blunt the continent's growth engine, though management believes an extension is likely and points to orders already booked beyond December. Layered on top are US tariff and export-exposure risk, persistent raw-material and cost pressures, Red Sea and Hormuz shipping disruptions inflating freight and working capital, and a degree of project and customer concentration. These are real, and investors should size positions accordingly.

Sources

Motilal Oswal Financial Services — Gokaldas Export, 1QFY27 Results Update (Sector: Textile), dated 12 August 2026. Research analysts: Soham Samanta, Shirish Pardeshi, Ritik Bansal and Devashree Bhole.

Disclaimer: Investments in the securities market are subject to market risks; read all related documents carefully before investing. The rating, levels and target quoted above belong to the originating research house and are reproduced here for information only. This is not investment advice; readers should consult a registered adviser before acting. Dollar figures have been converted to rupees at an indicative rate of about Rs 89 to the dollar for illustration.

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