Stock Crash: This stock has suffered its biggest drop in six years, trading nearly 50% below its peak.

News Topical, Digital Desk : Stock Crash: Shares of Gokaldas Exports Limited, a leading export-oriented company in India that relies heavily on the US market, witnessed a sharp sell-off today, Thursday, January 8th. The stock fell more than 12% in a single day, its biggest single-day decline since April 2020. The stock has declined in five of the past six trading sessions. Furthermore, in the past five weeks, the stock has only registered gains in five trading sessions, meaning only one day of gains per week.

Shares at 29-month lows
With this sharp decline, Gokaldas Exports' stock has fallen to its lowest level since August 2023. It is currently trading at a nearly 29-month low. Not only Gokaldas, but shares of other export-oriented companies such as Avanti Feeds, Pearl Global, and Apex Frozen Foods are also seeing declines today. These shares have seen declines ranging from 3% to 7% in today's trading. Uncertainty surrounding a trade deal
with the US at the start of the new year is weighing heavily on these companies. Contracts for the entire year are typically finalized during this time, further exacerbating investor concerns. Furthermore, these companies are also set to release their third quarter (Q3) results soon. Currently, the US imposes tariffs of up to 50% on Indian exports, posing a significant challenge for exporters. A Bloomberg report indicates that a major Indian footwear manufacturer stated that January 15th is considered the deadline to secure large orders from the US to ensure stable revenue for the summer and winter seasons. Companies heavily dependent on the US, such as Gokaldas, Pearl Global, and Welspun Living, derive 50% to 70% of their revenue from the US market. Shrimp feed companies Avanti and Apex also derive 50% to two-thirds of their revenue from the US. However, industry organizations say these companies have also increased exports to other markets, including the European Union. Gokaldas Exports' shares traded at high volumes today, with over 2 million shares traded, compared to its 20-day average volume of just 1.5 lakh shares. This reflects heavy selling and investor nervousness. During trading, Gokaldas Exports' stock fell 11.6% to ₹604.7. The stock is now down nearly 47% from its 52-week high of ₹1,144. It has also lost nearly 53% from its record high of ₹1,262, set in December 2024.

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