Shares of Gokaldas Exports rose 9% to a 52-week high of Rs 497.15 per share in intraday trade on Monday in hopes of an improved business outlook.

The stock has soared 29% in the past month, with a 1% gain for the S&P BSE Sensex. It hit an all-time high of Rs 519.55 in May last year.

Gokaldas Exports is one of the leading garment exporters in India, with an annual capacity of over 36 million pieces. The company has a customer base of leading international brands, of which ‘GAP’ and ‘H&M’ are major contributors to revenue. The US contributed nearly 80% of sales.

The company’s revenue fell 11% YoY to Rs 5,230 crore in Q4FY23 (increased slightly by 1% QoQ) due to slower spring-summer production orders.

Despite weak sales, Gokdaldas Exports maintained double-digit Ebitda at 13.4% for the seventh consecutive quarter through various cost-saving initiatives.

However, finance costs fell 34% yearly due to debt repayments, while other income more than doubled. Profit after tax in Q4FY23 was Rs 47.2 crore compared to Rs 60.9 crore in the same period last year.

Management expects demand conditions to improve in the year’s second half.

“The company is focused on gaining market share and positioning the business for growth when market conditions become more favourable. The company recently added two new customers – one in the US and one in the UK – and hopes it will continue to grow with them together,” they added.