Gokaldas Exports
CMP: Rs 252.10
Target price: Rs 285
Citigroup Global Markets has retained its ‘buy’ rating on Gokaldas Exports with a price target of Rs 285 after the Blackstone Group’s decision to buy a 50.1% stake in the company.
“Prima facie, we believe that the open offer at a 20% premium from current levels provides a good upside. While the company is unlikely to witness any major operational impact, the fact that promoters have sold a significant stake does raise some concerns,” the Citigroup note to clients said.
“With Gokaldas’ large capacity, good relationships with global brands and healthy order-book position, we believe the company is well positioned for growth. Its strategy to focus on outerwear, enrich its wide product range and expand customer base should lead to a lower-risk business model,” the note added.
CMP: Rs 252.10
Target price: Rs 285
Citigroup Global Markets has retained its ‘buy’ rating on Gokaldas Exports with a price target of Rs 285 after the Blackstone Group’s decision to buy a 50.1% stake in the company.
“Prima facie, we believe that the open offer at a 20% premium from current levels provides a good upside. While the company is unlikely to witness any major operational impact, the fact that promoters have sold a significant stake does raise some concerns,” the Citigroup note to clients said.
“With Gokaldas’ large capacity, good relationships with global brands and healthy order-book position, we believe the company is well positioned for growth. Its strategy to focus on outerwear, enrich its wide product range and expand customer base should lead to a lower-risk business model,” the note added.
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