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Gokaldas Exports Shares Plummet 95%, Hit 28-Month Low

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  Published in Stocks and Investing on Thursday, January 8th 2026 at 2:23 GMT by Zee Business
      Locales: INDIA, UNITED STATES

Bengaluru, India - January 8, 2026 - Gokaldas Exports, once a leading name in India's garment export industry, is currently facing an unprecedented crisis. Shares of the company have plummeted 95% from their 52-week high, trading at a concerning INR73.90 - a 28-month low. This dramatic downturn, witnessed today, January 8th, 2026, stems from a confluence of factors impacting the company's performance and broader anxieties surrounding the garment export sector.

The immediate trigger for the sell-off was the release of Gokaldas Exports' Q3FY24 results. While specific figures haven't been released in this report, the reaction indicates significant underperformance. This has prompted a swift and decisive downgrade from multiple brokerage firms, signaling a lack of confidence in the company's near-term prospects.

Brokerage Downgrades Signal Deep Concern

Nomura has downgraded Gokaldas Exports to 'Neutral' with a target price of INR175. Motilal Oswal followed suit, also issuing a 'Neutral' rating and a target price of INR190. ICICI Direct has taken a slightly more cautious stance, issuing a 'Hold' rating with a target price of INR200. The consensus across these firms highlights substantial concern regarding the company's current trajectory.

The repeated hitting of 'lower circuits' - a mechanism preventing excessive single-day declines - underscores the intensity of the selling pressure. Currently, Gokaldas Exports' lower circuit is capped at 5%, meaning the price cannot fall more than that percentage in a single trading session. However, the continued triggering of this circuit suggests investors are aggressively offloading shares.

Margin Pressure and Order Cancellations: The Core Issues

Analysts point to two primary drivers behind the company's woes: eroding margins and, critically, reports of order cancellations. Declining margins suggest increasing input costs, potentially due to rising cotton prices, labor expenses, or intensified competition. However, the order cancellations represent a more significant and immediate threat, indicating a loss of confidence from key international clients. The fact that Gokaldas Exports supplies prominent brands like Nike, Adidas, and Puma makes these cancellations particularly damaging, raising questions about the long-term relationships.

Wider Implications for the Garment Export Sector

The situation at Gokaldas Exports isn't isolated. The garment export sector, globally and within India, is facing headwinds. Factors contributing to this include slowing global demand, particularly in key markets like the US and Europe, rising freight costs, and increased competition from countries with lower labor costs, such as Bangladesh and Vietnam. This macroeconomic environment adds to the challenges Gokaldas Exports is experiencing.

A Six-Month Downturn and Future Outlook

Over the past six months, Gokaldas Exports has lost over 50% of its value, significantly underperforming the broader market. This prolonged downturn suggests the problems are not merely short-term fluctuations. Investors are now questioning the company's ability to adapt to the changing market conditions and restore profitability.

Looking ahead, the path to recovery for Gokaldas Exports appears fraught with challenges. The company will need to address the root causes of the margin pressure, restore trust with its clients by addressing the order cancellations, and navigate the increasingly competitive landscape of the global garment export market. Whether it can successfully do so remains to be seen. Analysts are watching closely to see if the company provides a detailed turnaround strategy in the coming weeks. The future performance of Gokaldas Exports will not only reflect the health of the company itself but also serve as a barometer for the broader Indian garment export industry.