Gokaldas Exports shares surge over 40% in two days after India-US trade deal

Shares of Gokaldas Exports have jumped more than 40% in the last two trading sessions after the announcement of a landmark trade agreement between India and the United States late Monday night. The deal, announced jointly by US President Donald Trump and Prime Minister Narendra Modi, reduces reciprocal tariffs on Indian imports to 18%.

Following a 20% gain on Tuesday, the stock extended its rally on Wednesday, climbing another 20% intraday to hit Rs 832.85 on the NSE.

Under the new agreement, Indian exports to the US will face an 18% tariff, which is lower than other major garment-exporting countries, such as Vietnam and Bangladesh, where tariffs remain at 20%. Overall, US tariffs on Indian goods will be cut from 50% to 18%, while India has agreed to reduce its tariff and non-tariff barriers on US products to zero.

The textile sector has been particularly sensitive to US trade policies, as most Indian textile exporters earn 50–70% of their revenue from the US market. For Gokaldas Exports, the US accounts for nearly 70% of total revenue, making the company a major beneficiary of the deal.

The recent stock rally marks a significant turnaround for Gokaldas Exports. Over the past year, the stock had declined about 14%, but over the past three years, it has delivered substantial gains of 136%, doubling investor wealth.

From a valuation perspective, Gokaldas Exports currently trades at a PE ratio of 43.44 and a PB ratio of 2.38, indicating relatively high investor expectations.

Gokaldas Exports reported quarterly revenue of Rs 998 crore for Dec-2025, reflecting a slight decline of 0.3% year-on-year. The company’s net profit for the quarter stood at Rs 15 crore, marking a sharp drop of 71% YoY.In terms of shareholding, both Foreign Institutional Investors (FIIs) and Mutual Funds (MFs) increased their stakes during the December quarter. FIIs raised their holdings from 22.93% to 23.71%, while Mutual Funds increased their stake from 34.24% to 35.03%.

From a technical perspective, Gokaldas Exports remains bullish. The 14-day Relative Strength Index (RSI) is at 57.3, suggesting the stock is neither overbought nor oversold. Additionally, the stock is trading above 7 of 8 key Simple Moving Averages (SMAs), indicating strong upward momentum.

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