PL Capital starts Gokaldas at Buy, sees 37% upside; KPR at Accumulate
The brokerage expects Indian apparel manufacturers to benefit from recovering volumes, backward integration and Europe-led demand. It values Gokaldas Exports on September 2028 EPS and projects KPR Mill revenue, EBITDA and PAT growth through FY29E.
What happened
PL Capital initiated Buy coverage on Gokaldas Exports and Accumulate on KPR Mill, citing recovery in apparel volumes, backward integration and Europe-led
Key facts
- Gokaldas Exports target price: ₹953 per share
- Gokaldas Exports implied upside: nearly 37%
- KPR Mill target price: ₹1,259 per share
- KPR Mill implied upside: around 12.9%
- KPR FY26 revenue from UK and EU: 63%
- KPR estimated FY26-29E revenue CAGR: 11%
- KPR estimated FY26-29E EBITDA CAGR: 15%
- KPR estimated FY26-29E PAT CAGR: 13%
Why this matters
The sector thesis favors investments or partnerships that add vertically integrated capacity and expand access to European apparel demand.
What to watch
- European retail sales, apparel import data and major brand inventory commentary.
- Quarterly export order inflow, order-book duration and customer additions.
- Capacity utilization, new factory ramp-up timelines and labor availability.
- Cotton, yarn, power, freight and foreign-exchange movements.
- EBITDA-margin progression versus backward-integration expectations.
- US/EU trade-policy changes, sourcing shifts from Bangladesh/China and ESG-compliance requirements.
- Any material capex, acquisition or debt-funded expansion announcements.
- Track quarterly order-book commentary, buyer inventory trends and capacity-utilization changes at Gokaldas Exports and KPR Mill.
- Watch whether Gokaldas converts demand recovery into higher-margin, value-added programs rather than only volume growth.
- Assess KPR's ability to sustain vertical-integration advantages in cotton, yarn, fabric and garment operations as input prices move.
- Compare management capex plans with confirmed order visibility; aggressive expansion ahead of demand could dilute return metrics.
- Monitor analyst estimate revisions after results, especially EBITDA-margin assumptions and export revenue growth forecasts.