Why Gokaldas Exports shares will be in top focus tomorrow; what it said in exchange filing? Stock down over 5% in 5 days
Gokaldas Exports shares will remain in focus in Wednesday's trading session after disclosing that one of the customers of its step-down subsidiary has filed for bankruptcy protection under US laws.
Gokaldas Exports share price ended Monday's session on a weaker note, closing the day 3% down at ₹678 per share.
In an exchange filing, the company said The Children's Place Inc., a customer of Atraco Industrial Enterprise FZE, a step-down subsidiary of Gokaldas Exports, has sought protection under Chapter 11 of the US Bankruptcy Code.
"We wish to inform that ‘The Children's Place, Inc.’, one of the customers of Atraco Industrial Enterprise FZE, a step-down subsidiary of Gokaldas Exports Limited ("the Company"), has filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the United States," the company said in the filing.
Gokaldas Exports said Atraco Industrial Enterprise FZE had outstanding receivables of $4.11 million from The Children's Place as of the date of the disclosure. The company added that it is closely monitoring the developments and assessing the potential impact on its business operations and financials. It will take appropriate steps to address the matter.
“As of the date of this disclosure, Atraco Industrial Enterprise FZE has an outstanding receivable of USD 4.11 Mn from The Children's Place, Inc. The Company is closely monitoring developments in this matter and is assessing the potential impact on its business and financials and will address it suitably,” it added.
According to a report by CNBC TV-18, Gokaldas Exports said it expects stronger growth in FY28, driven by its African operations and a higher contribution from acquired businesses.
Managing Director and Vice-Chairman Sivaramkrishnan Ganapati said the restoration of duty-free access for African operations to the US has provided greater clarity to the business and triggered a sharp increase in customer enquiries, particularly for its Kenya operations. He expects the African business to regain momentum from the next financial year, the report added.
Gokaldas Exports shares have witnessed mixed performance across different time periods, declining 4.26% over the past week despite gaining 1.54% in the last one month.
The stock has fallen 7.39% on a year-to-date basis and slipped 18.67% over the past year, reflecting continued pressure on investor sentiment towards the textile and apparel exporter.
Over a longer investment horizon, Gokaldas Exports shares have declined 17.40% in three years. However, the stock has delivered substantial wealth creation over five years, gaining 169.15%, highlighting its strong historical returns despite recent volatility.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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