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What is the story about?
Shares of Gokaldas Exports Ltd., a key export-oriented stock with primary exposure to the US market, are down over 12% on Thursday, January 8, marking their biggest single-day fall since April 2020.
The stock has declined in five out of the last six trading sessions. In fact, over the last five weeks, the stock has gained in only five trading sessions, with one day of gains seen across each of the five weeks.
With this fall, the stock has declined to the lowest level since August 2023, which is a 29-month low.
Not only Gokaldas, shares of other export-oriented names such as Avanti Feeds, Pearl Global, Apex Frozen Foods, are also witnessing a fall between 3% to 7% in today's trading session.
Uncertainties over a trade deal with the US is weighing on these companies as the new year has begun with contracts most likely to be locked for the year during this period. The companies will also be reporting their third quarter results soon.
Indian exports currently invite a 50% tariff to the US.
A report from Bloomberg cited a large shoemaker in India, who mentioned that January 15 is the cutoff date to secure bulk orders from the US to ensure stable revenue for the summer and autumn season.
Companies such as Gokaldas, Pearl Global, Welspun Living, get anywhere between 50% to 70% of their revenue from the US market. Shrimp feed players Avanti, Apex get up to half or two-third of their revenue from the US, but associations have stated that the companies and exporters have found other markets, including the European Union for their exports.
Shares of Gokaldas has over 20 lakh shares traded compared to their 20-day average of 1.5 lakh shares.
Shares of Gokaldas Exports are trading 11.6% lower at ₹604.7. The stock has now declined more than 47% from their 52-week high of ₹1,144. From its record high of ₹1,262, which it had surged to in December 2024, the stock is down 53%.
The stock has declined in five out of the last six trading sessions. In fact, over the last five weeks, the stock has gained in only five trading sessions, with one day of gains seen across each of the five weeks.
With this fall, the stock has declined to the lowest level since August 2023, which is a 29-month low.
Not only Gokaldas, shares of other export-oriented names such as Avanti Feeds, Pearl Global, Apex Frozen Foods, are also witnessing a fall between 3% to 7% in today's trading session.
Uncertainties over a trade deal with the US is weighing on these companies as the new year has begun with contracts most likely to be locked for the year during this period. The companies will also be reporting their third quarter results soon.
Indian exports currently invite a 50% tariff to the US.
A report from Bloomberg cited a large shoemaker in India, who mentioned that January 15 is the cutoff date to secure bulk orders from the US to ensure stable revenue for the summer and autumn season.
Companies such as Gokaldas, Pearl Global, Welspun Living, get anywhere between 50% to 70% of their revenue from the US market. Shrimp feed players Avanti, Apex get up to half or two-third of their revenue from the US, but associations have stated that the companies and exporters have found other markets, including the European Union for their exports.
Shares of Gokaldas has over 20 lakh shares traded compared to their 20-day average of 1.5 lakh shares.
Shares of Gokaldas Exports are trading 11.6% lower at ₹604.7. The stock has now declined more than 47% from their 52-week high of ₹1,144. From its record high of ₹1,262, which it had surged to in December 2024, the stock is down 53%.
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