Goodluck India Shares Slump 15% In Two Days: What's Dragging The Stock?

Shares of Goodluck India Ltd. have fallen 15% since Wednesday after the company lowered its FY26 revenue growth guidance amid geopolitical uncertainty and tariff woes.

Goodluck India is currently trading with cuts of more than 6%. The scrip had fallen 9% on Wednesday as well.

This comes after the management of the company, which is primarily involved in the manufacturing of steel products, revised its FY26 revenue growth guidance from 20% to 12%.

Speaking to a TV news channel, the management cited geopolitical uncertainty and tariff pressure as key reasons for the guidance revision.

“We were expecting 20%, but with geopolitical tensions and tariff problems, we might end up with around 12%,” said MC Garg, Chairman and Managing Director of Goodluck India.

US exports contribute to roughly 8% of Goodluck India's overall revenue, a significant portion of which has come under pressure owing to tariffs imposed on Indian goods by the Donald Trump administration.

The company, however, is hopeful of curbing the impact of tariffs due to the niche nature of its export products, the management added.

Apart from the US, Goodluck India also exports to other key markets such as Germany, the UK, France and the UAE. The company, though, is bullish on the defence segment, which currently contributes to only 2% of the revenue.

"The plan is almost ready, pending the industrial licence. It will be a game changer for the company,” Garg said about a much-anticipated bullet shell project.

The pressure on Goodluck India stock comes at a time when the scrip has given strong returns to investors. In fact, over a six-month period, the shares have given an impressive 60% return.

Over a longer time horizon, Goodluck India is a multibagger, giving 26x returns to investors in the past five years.

With a relative strength index of 33.87, it appears the steel company is currently in an oversold territory.