Wednesday, October 29, 2008

Gokaldas Exports spurts

Readymade garments maker Gokaldas Exports surged 19.51% to Rs 117 at 10:37 IST on BSE on reports of Anand Jain, a close confidante of Reliance Industries, picking up close to 10% stake in the firm.
The stock hit a high of Rs 117 and a low of Rs 100 so far during the day. The stock had a 52-week high of Rs 299 on 23 January 2008 and a 52-week low of Rs 90 on 13 October 2008.
The company’s current equity is Rs 17.19 crore. Face value per share is Rs 5.
The current price of Rs 117 discounts its Q1 March 2008 annualized EPS of Rs 12.86, by a PE multiple of 9.09.
The acquisition coincides with Reliance Industries (RIL)’s attempt to revive ‘Only Vimal’ and other textile brands. Anand Jain is chairman of Jai Corp
Gokaldas Exports is engaged in designing, manufacturing and selling range of garments for men, women and children and caters to the needs of several international fashion brands and retailers. The company’s products include coats, suits, jackets, parkas, windcheaters, ski wear; warm-ups, surf wear, swim wear; trousers, shorts; casual wear shirts, ladies blouses and dresses for customers in international market.
In 2007, the US-based private equity firm Blackstone had acquired a 50% stake in Gokaldas from its promoters – the Hindujas. The deal was pegged at Rs 275 a share. It was followed by the mandatory open offer to shareholders which increased Blackstone’s stake to 68.27%. Consequently, the Hinduja family’s shareholding came down to 20%.
Gokaldas Exports had reported 4.90% rise in net profit to Rs 11.05 crore on 11.2% growth in net sales to Rs 291.24 crore in Q1 March 2008 over Q1 March 2007.

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