Multibagger Stock Hits 52W-High As NR Narayana Murthy Buys 1.12% Stake

Gokaldas Exports, a mid-cap company in the consumer discretionary category, started trading today on the NSE at Rs. 852.40 per share. During the morning trades, the stock gained 3.70% to reach a new 52-week high of Rs. 884. After venture capital company Catamaran Ventures LLP, headed by Infosys co founder NR Narayana Murthy, acquired a 1.12 per cent stake in the apparel manufacturing company, the multibagger stock saw a rise in the morning deals.

According to Gokaldas Exports' shareholding pattern for the quarter from July to September 2023, Catamaran Ventures held around 6.7 lakh equity shares in the company. In Q2FY24, Catamaran Ventures held 6,78,003 shares or 1.12% stake in the company whereas, in Q1FY23 or the quarter ended in June 2023, there was no shareholding of Catamaran Ventures in the company, which means that the Venture capital firm has made a fresh stake in Gokaldas Exports during the quarter under review.

Gokaldas Exports Financials

The company's consolidated net income for the quarter ended in June 2023 was Rs. 522.23 crore, down 14.76% YoY from Rs. 612.69 crore for the quarter ended in June 2022. Its net profit was Rs 32.55 Cr in Q1FY24, down from Rs 39.39 Cr in Q1FY23 by 17.36% YoY. The firm reported EPS of Rs.5.11 for the quarter that ended June 30, 2023, down from Rs.6.49 for the quarter that ended June 30, 2022.

During the quarter that ended June 30, 2023, the firm recorded a total income of Rs. 522.23 crores, down from Rs. 530.12 crores during the quarter that ended March 31, 2023. It reported a net profit of Rs. 32.55 in Q1FY24, down from Rs. 47.19 Cr. in Q4FY23 or a drop of 31.02% QoQ. Gokaldas Exports has posted EPS of Rs. 5.11 for the quarter ended June 30, 2023 against Rs. 7.42 for the quarter ended March 31, 2023.

Gokaldas Exports Share Price History

The stock price soared from Rs 80.25 to the current market price during the past five years, which brought about a multibagger return of 984%. The stock price jumped from Rs 71.30 to the current market price during the past three years, which led to a multibagger return of 1,126%. The stock price soared from Rs 383.15 to the current market price during the course of the previous year, recording a multibagger return of 126.14%. On a year-to-date basis, the stock price expanded from Rs 368.55 to the current market price, registering a multibagger return of 136% so far in 2023.

Gokaldas Exports Share Price Target

Deven Mehata, Equity Research Analyst of Choice Broking said the stock is currently trading at an all-time high of approximately 870, indicating a strong bullish trend. There is notable support around the 785 level, which coincides with the 20-day Exponential Moving Average (EMA). This support level is crucial for traders and investors, as it suggests that if the stock's price declines, it may attract buying interest and potentially reverse its direction.

Technical analysis of the daily charts reveals a significant development: a breakout of an inside bar candle pattern near the support level. This breakout is a strong bullish signal, indicating that the stock might continue to rise. Additionally, the stock is displaying a pattern of higher highs and higher lows, reinforcing the bullish sentiment.

However, it's worth noting a minor resistance level around 881, which the stock needs to overcome for further upward momentum towards 950 and beyond. While the stock is trading above essential moving averages, indicating strength, investors should exercise caution, as the Relative Strength Index (RSI) is currently at 69, suggesting an overbought condition. Investors holding positions from lower levels are advised to implement a trailing stop loss strategy near the support at 785 to protect their gains.

Disclaimer

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