Gokaldas Exports on 'ray' of hope

Gokaldas Exports breached the upper circuit at Rs.52.50, the moment it opened for trading. It has since then come off this circuit and is now over 12% up.

The market is thrilled with the news that it has sold off its wholly-owned subsidiary, Robot Systems to apparel giant, Raymond though the amount at which it has been sold off has not been disclosed by Gokaldas.

The company is the largest exporter of garments in India, making blazers and pants (formal and casuals), shorts, shirts, blouses, denim wear, swim wear, active and sportswear. However the company had a bad Q3FY15 wherein it had posted a net loss of Rs.1 crore v/s net profit of Rs.3 crore in Q2. The company has blamed this performance on weak exports to Europe, Russia and Latin America. Plus there have also been delays in the ordering cycles by many large retailers in Europe affecting the sales revenue in Q3. Domestic retailers were also cautious in their ordering for the festive season, due to inventory build-up.