Gokaldas Exports share price down 13%; 6 Reasons explained

Synopsis: The shares of Gokaldas Exports are down by 13% in the Intraday trade on Thursday, January 8, and the stock is also now trading more than 50% below its all-time high, marking its biggest single-day fall since April 2020.

The shares of Small-Cap Company, specialising in designing, manufacturing, and exporting a wide range of apparel for men, women, and children, are in the spotlight as they have declined by 13 percent in the intraday trade. In this article, let’s explore the reason for the fall.

With a market capitalization of Rs. 4,478.62 Crores on Thursday, the shares of Gokaldas Exports Ltd declined upto 12.7 percent, reaching a low of Rs. 597.00 compared to its previous closing price of Rs. 684.10. It is trading at a discount of more than 50 percent from its all time high price of Rs. 1,262 in December 2024.

What Happened

Gokaldas Exports Ltd, engaged in designing, manufacturing, and exporting a wide range of apparel for men, women, and children, was in focus as its stock declined by 13 percent on Thursday, January 8. The stock is now trading more than 50 percent below its all-time high, marking its biggest single-day fall since April 2020.

Reason for the Fall

Uncertainty over the US trade deal

The ongoing uncertainty around a trade agreement with the US has created visibility issues for exporters. With the US being a key market, any lack of clarity directly impacts order inflows and investor confidence. Indian exports currently face a steep 50% tariff to the US, making products less competitive, raising concerns over margins, demand sustainability, and long-term profitability.

Along with it, today the shares of export-oriented textile and shrimp stocks tumbled in trade on January 8 after US President Donald Trump approved moving forward with a bipartisan sanctions bill that proposes a whopping 500 percent tariff on countries continuing to do business with Russia, including India.

Critical order-booking window

As highlighted by the Bloomberg report, January is crucial for locking bulk US orders for the summer and autumn seasons. Any disruption or delay during this period risks weaker revenue for the rest of the year.

Heavy dependence on the US market

Companies like Gokaldas, Pearl Global, and Welspun Living derive 50–70% of revenue from the US, while shrimp exporters like Avanti and Apex earn up to two-thirds. Such concentration increases vulnerability to policy and demand shocks.

Earnings uncertainty ahead of Q3 results

With third-quarter results approaching, investors are becoming cautious amid concerns over potential order slowdowns and margin pressure, which is weighing on sentiment and prompting pre-emptive selling ahead of the earnings announcement.

Sharp increase in trading volumes

The Gokaldas saw over 40 lakh shares traded versus a 20-day average of 1.5 lakh, indicating panic selling or institutional exit rather than routine profit-booking.

Key Technical Factors

The stock was recently trading in the oversold zone, with the RSI below 30, indicating weakness. It is also positioned well below both its 50-day and 200-day moving averages, and also formed a death crossover, further suggesting a bearish trend.

Financials

The company’s revenue rose by 5.96 percent from Rs. 929.00 crores to Rs. 984.35 crores in Q2FY25-26. Meanwhile, Net profit declined from Rs. 28.16 crores to Rs. 8.08 crores in the same period.

The company shows decent operating efficiency with a ROCE of 10.6%, indicating reasonable returns from capital employed. Its ROE of 8.16% suggests moderate profitability for shareholders. A debt-to-equity ratio of 0.46 reflects a conservative capital structure, implying manageable leverage and relatively lower financial risk.

Gokaldas Exports Ltd. is a leading Indian apparel manufacturer and exporter, established in 1979, that supplies garments to international fashion brands and retailers. The company is known for its large-scale production capabilities, emphasis on sustainability and ethical practices, and a significant female workforce. It operates manufacturing facilities across India, with an annual production capacity of millions of pieces.

For FY26, investments remain strong, with Rs. 110 crore spent in H1FY26 and a full-year estimate of Rs. 150 crore, reflecting continued focus on capacity expansion alongside sustained modernisation efforts.

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