Gandhar Oil Refinery Falls 8.60% Amid Volatility and Technical Upgrade

27 January: Sharp Intraday Decline Amid Price Pressure

Gandhar Oil Refinery’s shares plunged sharply on 27 January 2026, closing at Rs.152.70, down Rs.11.20 or 6.83% from the previous close. The stock hit an intraday low of Rs.149.15, representing a 9% drop from the prior close, signalling intense selling pressure. This decline was significantly steeper than the Sensex’s 0.50% gain to 35,786.84, highlighting the stock’s relative weakness.

The day’s weighted average price volatility was exceptionally high at 112.98%, reflecting substantial price swings. Technically, the stock traded below its 5-day, 20-day, and 200-day moving averages, indicating short-term bearish momentum despite remaining above its 50-day and 100-day averages. This mixed technical picture suggested medium-term support but immediate selling pressure.

The broader market environment was positive, with the Sensex rising 0.50%, but sectoral weakness in oil and related industries likely contributed to the stock’s underperformance. The stock’s 7.54% daily loss also contrasted with the Sensex’s modest gains, underscoring the stock-specific challenges faced that day.

28 January: Upgrade to Hold on Improved Financials and Technicals

On 28 January, MarketsMOJO upgraded Gandhar Oil Refinery’s rating from Sell to Hold, citing improved technical indicators and strong quarterly financial results. The stock closed at Rs.153.25, up 0.36% on the day, modestly recovering from the prior day’s sharp fall but still well below the week’s opening price.

The upgrade was driven by the company’s Q3 FY25-26 performance, which showed net sales of ₹1,167.06 crores—the highest quarterly figure recorded—and a profit before tax of ₹41.56 crores, a 44.2% increase over the previous four-quarter average. Net profit after tax rose 38.9% to ₹32.39 crores, signalling operational improvements and effective cost management.

Despite subdued long-term growth trends, with net sales declining at an annualised rate of -0.83% over five years and operating profit contracting by -19.77% annually, the recent quarterly momentum was positive. The company’s low debt-to-equity ratio of 0.10 times further supports its financial stability.

Technically, the stock’s weekly indicators improved from mildly bearish to sideways, with a mildly bullish weekly MACD and Bollinger Bands, and a bullish weekly Know Sure Thing (KST) indicator. The monthly technicals were mixed but showed signs of stabilisation. This technical improvement underpinned the revised Hold rating, suggesting a potential consolidation phase.

29 January: Continued Pressure Despite Sensex Gains

The stock declined further on 29 January, closing at Rs.150.10, down Rs.3.15 or 2.06% on the day. This drop occurred despite the Sensex rising 0.22% to 36,266.59, indicating ongoing stock-specific weakness. Volume remained moderate at 36,146 shares traded.

The decline reflected the stock’s struggle to regain upward momentum after the sharp fall on 27 January. Technical indicators remained cautious, with daily moving averages still mildly bearish, although weekly momentum suggested stabilisation. The stock’s price remained below key short-term moving averages, limiting upside potential in the near term.

30 January: Week Closes with Minor Loss Amid Market Pullback

On the final trading day of the week, 30 January, Gandhar Oil Refinery closed at Rs.149.80, down 0.20% from the previous day’s close. The Sensex declined 0.22% to 36,185.03, reflecting a modest market pullback. Volume was lower at 22,498 shares, indicating reduced trading activity.

The stock’s minor loss on the day completed a week of significant volatility and an overall decline of 8.60%. Despite the recent technical upgrade and improved quarterly results, the stock has yet to demonstrate sustained recovery, remaining under pressure from broader sectoral and market factors.

Key Takeaways

Negative Price Momentum: The stock’s 8.60% weekly decline sharply contrasts with the Sensex’s 1.62% gain, highlighting significant underperformance and short-term selling pressure.

Volatility and Intraday Swings: The exceptionally high intraday volatility on 27 January and the intraday low of Rs.149.15 underscore the stock’s vulnerability to rapid price movements amid market uncertainty.

Technical Upgrade Signals Stabilisation: The MarketsMOJO upgrade from Sell to Hold on 28 January reflects improved technical indicators and a stabilising price trend, suggesting the stock may be entering a consolidation phase.

Strong Quarterly Financials: The company’s highest-ever quarterly net sales and a 44.2% increase in profit before tax indicate operational improvements that contrast with its subdued long-term growth trajectory.

Valuation Appeal: Attractive valuation metrics such as a ROCE of 10.6%, EV to capital employed ratio of 1.1, and a low PEG ratio of 0.4 suggest the stock is trading at a discount relative to its earnings growth potential.

Sector and Market Context: Despite positive broader market trends during the week, sectoral weakness in oil refining and related industries likely weighed on the stock’s performance.

Conclusion

The week ending 30 January 2026 was challenging for Gandhar Oil Refinery (India) Ltd, with the stock enduring a steep 8.60% decline amid heightened volatility and sectoral headwinds. The sharp intraday drop on 27 January reflected immediate selling pressure, while the subsequent MarketsMOJO upgrade to Hold on 28 January highlighted improving technicals and encouraging quarterly financial results. Despite these positive signals, the stock has yet to demonstrate sustained recovery, closing the week well below its opening price and underperforming the Sensex by a wide margin.

Investors should note the company’s operational improvements and attractive valuation metrics, which provide some support against downside risk. However, the subdued long-term growth outlook and ongoing sector volatility warrant caution. The Hold rating suggests a balanced stance, with the stock potentially poised for consolidation rather than immediate rebound. Continued monitoring of financial momentum and broader market conditions will be essential to assess future price direction.

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