Shares of Gokaldas Exports hit a six-month low of Rs 319.55 in Wednesday’s trade, down 7% on the BSE. Shares of apparel and apparel makers have been at their lowest levels since Jan. 1, 2022. It has corrected 38% from its all-time high of Rs 319.55, touched on May 18, 2022.

Global apparel retailers have asked Indian exporters to cut clothing prices as the rupee weakened against the dollar, as cotton prices fell 16%, a report said.

ICICI Securities analysts believe that if the recessionary trend in major markets in Europe and the US continues, apparel exports in spring 2023 may decrease, negatively affecting orders for Indian apparel exporters.

Meanwhile, in fiscal 2022, the company encountered a challenging business environment. “The Delta wave tested us in Q1, the Omicron wave at the beginning of Q4, and logistical disruptions throughout the year. High raw material prices for cotton and MMF products, European wars and inflation in key markets were additional headwinds,” said management.

Going forward, management expects a good chance of negotiating a Free Trade Agreement (FTA) with the UK by the end of this year and an FTA with Europe in 2023.

“With a diverse customer base, the company expects higher growth for its non-top five customers, with an opportunity to focus on future markets as negotiations on a free trade agreement between India and the UK progress. Return to work and social; knitted products also gained traction,” management added.

Meanwhile, the company’s board of directors is scheduled to meet on July 22, 2022, to review the unaudited financial results for the quarter ended June 30, 2022 (Q1FY23).