Recent Price Movement and Market Context
On 9 December 2025, Gandhar Oil Refinery (India) recorded its lowest price in the past year at Rs.120.6. This level also represents the stock's all-time low, underscoring the extent of the price contraction. Over the last two trading sessions, the stock has declined by approximately 3.74%, underperforming its sector by 1.03% on the day of the new low. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.
In contrast, the broader market index, Sensex, opened lower by 359.82 points and was trading at 84,591.37, down 0.6%. Despite this, Sensex remains close to its 52-week high of 86,159.02, just 1.85% away, and is positioned above its 50-day moving average, which itself is above the 200-day moving average, signalling a generally bullish trend for the market overall.
Long-Term Performance and Financial Trends
Gandhar Oil Refinery (India) has experienced a notable decline over the past year, with a total return of -49.73%, significantly lagging behind the Sensex's 3.77% return during the same period. The stock's 52-week high was Rs.244.55, highlighting the scale of the recent price contraction.
Over the last five years, the company’s net sales have shown a compound annual rate of -2.76%, while operating profit has moved at an annual rate of -21.51%. These figures suggest subdued growth in both top-line and operating profitability over the medium term. Additionally, the company’s profits have fallen by 11.6% over the past year, further reflecting challenges in maintaining earnings levels.
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Debt Profile and Valuation Metrics
The company maintains a low average debt-to-equity ratio of 0.10 times, indicating limited reliance on debt financing. This conservative capital structure may provide some stability amid earnings pressures.
Return on Capital Employed (ROCE) stands at 10.6%, which is considered attractive relative to industry standards. The enterprise value to capital employed ratio is 0.9, suggesting the stock is trading at a discount compared to its peers' historical valuations. Despite the recent price decline, these valuation metrics highlight a degree of underlying value in the company’s capital base.
Quarterly Highlights and Profitability
In the quarter ending September 2025, Gandhar Oil Refinery (India) reported its highest operating profit to interest ratio at 6.41 times, alongside net sales reaching Rs.1,059.91 crore and PBDIT at Rs.65.84 crore. These quarterly figures represent peak levels for the company, indicating some positive operational outcomes despite the broader downward trend in stock price.
However, the stock’s performance over the past year, with a near 50% decline, reflects the market’s response to the company’s overall financial trajectory and sector conditions.
Shareholding and Sector Position
The majority of Gandhar Oil Refinery (India) shares are held by promoters, which may influence strategic decisions and company direction. The company operates within the oil industry, a sector that has experienced volatility due to fluctuating commodity prices and global economic factors.
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Comparative Performance and Market Positioning
When compared to the BSE500 index, Gandhar Oil Refinery (India) has underperformed over multiple time frames, including the last three years, one year, and three months. This persistent underperformance relative to a broad market benchmark highlights the challenges faced by the company in delivering returns consistent with wider market trends.
The stock’s current trading below all major moving averages further emphasises the subdued market sentiment. While the Sensex maintains a bullish stance with its 50-day moving average above the 200-day moving average, Gandhar Oil Refinery (India) remains on a downward trajectory.
Summary of Key Financial Indicators
To summarise, Gandhar Oil Refinery (India) has recorded a 52-week low price of Rs.120.6, with a year-to-date return of -49.73%. The company’s net sales and operating profit have shown negative compound annual growth rates over five years, while quarterly results have demonstrated some peak operational metrics. The low debt-to-equity ratio and attractive ROCE provide some counterbalance to the stock’s recent price weakness.
Overall, the stock’s recent price action reflects a combination of sector pressures and company-specific financial trends, with the current valuation levels indicating a discount relative to peers.
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