Gokaldas Exports rally over 18% to hit 52-week high ahead of Q1FY25 result and Bangladesh crisis

In a filing to the stock exchanges, Gokaldas Exports said that it will announce the Q1 results on Wednesday, August 7. The company also said that after the quarterly results are released, its management will host an earnings call at 11:30 am. on Thursday, August 8.

Meanwhile, a few reports suggested that the rally in the stock could be due to speculation that the company is benefiting from the ongoing political turmoil in neighbouring Bangladesh. The ensuing crisis in Bangladesh, which has led to the ouster of former Bangladesh Prime Minister Sheikh Hasina, may result in export opportunities for companies based in India as international buyers shift their focus to alternative markets.

The neighbouring country is one of the top destinations for manufacturing and exports for many leading global fashion and apparel brands. With the country facing a crisis, it could be an opportunity for exporters in the sector in India.

Gokaldas Exports is a leading apparel manufacturer and exporter. The company has five manufacturing units and exports textile products to 50 countries, including the United States, Canada and Malaysia.

Bangladesh is among the top global exporters to the United States. Data from the World Trade Organisation suggests that 9% of the total global exports to the US were from Bangladesh. The country also emerged as one of the major exporters to the European Union (EU). As much as 21% of the total exports to the EU were also from Bangladesh, according to Euro Short. Reports also suggest that until 2022, 11% of the total apparel exports globally were from Bangladesh.

Earlier on June 19, the company informed the exchanges via a release that it has agreed to invest in BRFL Textiles Private Limited (BTPL) by subscribing through Optionally Convertible Debentures (OCD). The company also said that it will also explore a possible merger or acquisition by June 30, 2025.

Gokaldas Exports shares have been trending upward in the past one year on the NSE, surging 113.72%. The stock has extended its gains and has traded higher by 16.13% in six months, 11.04% in a month, and 7.88% in five days.

Gokaldas Exports shares closed at ₹1,079 apiece, up 16.99%, on the NSE.