Current Rating and Its Implications
MarketsMOJO currently assigns a 'Sell' rating to Gokul Refoils and Solvent Ltd, indicating a cautious stance for investors. This rating suggests that the stock is expected to underperform relative to the broader market or its sector peers in the near to medium term. Investors should consider this recommendation as a signal to evaluate their exposure carefully and possibly reduce holdings, depending on their risk appetite and portfolio strategy.
How the Stock Looks Today: Key Fundamentals
As of 03 January 2026, Gokul Refoils and Solvent Ltd remains a microcap player in the edible oil sector, with a Mojo Score of 37.0, reflecting a modest improvement from its previous score of 29. Despite this increase, the overall Mojo Grade remains in the 'Sell' category, underscoring ongoing challenges.
The company’s Quality Grade is assessed as below average. This is primarily due to weak long-term fundamental strength, with operating profits declining at a compound annual growth rate (CAGR) of -5.17% over the past five years. Such a trend signals difficulties in sustaining profitability and operational efficiency.
In terms of Valuation, the stock is considered very attractive. This suggests that, relative to its earnings, assets, or cash flows, the stock is priced at a discount compared to peers or historical averages. However, attractive valuation alone does not offset concerns arising from other parameters.
Financial Trend indicators are positive, signalling some improvement or stability in recent financial performance. Yet, this is tempered by the company’s high leverage, with a Debt to EBITDA ratio of 5.09 times, indicating a significant debt burden that could constrain future growth and increase financial risk.
The Technical Grade is mildly bearish, reflecting recent price trends and momentum indicators that suggest downward pressure on the stock price. This is consistent with the stock’s recent returns and market sentiment.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Performance and Returns Overview
The latest data shows that Gokul Refoils and Solvent Ltd has delivered mixed returns over various time frames. As of 03 January 2026, the stock recorded a 1-day gain of 3.73% and a 1-week gain of 3.30%, indicating some short-term positive momentum. However, over longer periods, the stock has struggled, with a 1-month return of -0.43%, 3-month return of -6.79%, and 6-month return of -12.01%.
Most notably, the stock has declined by 37.32% over the past year, significantly underperforming the BSE500 index and reflecting persistent challenges in the company’s business and market perception. Year-to-date, the stock has gained 3.75%, but this is from a depressed base and does not offset the longer-term losses.
Financial Health and Profitability Metrics
Currently, the company’s financial metrics indicate low profitability and high leverage. The average Return on Equity (ROE) stands at 6.54%, which is modest and suggests limited efficiency in generating profits from shareholders’ funds. Coupled with a high Debt to EBITDA ratio of 5.09 times, the company faces constraints in servicing its debt obligations comfortably.
These factors contribute to the below-average quality grade and reinforce the cautious stance reflected in the 'Sell' rating. Investors should be mindful of the risks associated with the company’s financial structure and operational performance.
Sector Context and Market Position
Operating in the edible oil sector, Gokul Refoils and Solvent Ltd faces competitive pressures and market volatility. The sector’s dynamics, including raw material price fluctuations and regulatory changes, can impact margins and growth prospects. The company’s microcap status further adds to liquidity and volatility considerations for investors.
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What the 'Sell' Rating Means for Investors
The 'Sell' rating on Gokul Refoils and Solvent Ltd advises investors to approach the stock with caution. It reflects a combination of weak long-term fundamentals, financial risks, and technical indicators that suggest limited upside potential in the near term. While valuation appears attractive, this alone does not compensate for the operational and financial challenges the company faces.
Investors should consider their portfolio objectives and risk tolerance carefully before maintaining or increasing exposure to this stock. Diversification and monitoring of sector trends and company updates remain essential to managing investment risk effectively.
Summary
In summary, Gokul Refoils and Solvent Ltd’s current 'Sell' rating by MarketsMOJO, updated on 08 December 2025, is supported by a below-average quality grade, very attractive valuation, positive but cautious financial trends, and mildly bearish technical signals. The stock’s recent performance and financial metrics as of 03 January 2026 highlight ongoing challenges that investors should weigh carefully.
Continued monitoring of the company’s operational improvements, debt management, and market conditions will be crucial for any future reassessment of its investment potential.
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