Stock Price Movement and Market Context
On 8 December 2025, Gandhar Oil Refinery (India) recorded an intraday low of Rs.122.25, representing a decline of 2.74% for the day. The stock underperformed its sector by 2.23%, reflecting a challenging trading session. The closing price also reflected a day change of -2.39%, signalling continued downward pressure.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates a sustained period of subdued price momentum relative to its recent history.
In contrast, the broader market index, Sensex, experienced a negative session but remained relatively resilient. After opening flat with a minor decline of 87.53 points, Sensex fell by 231.68 points to close at 85,393.16, down 0.37%. Notably, Sensex is trading close to its 52-week high of 86,159.02, just 0.9% away, and remains above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a generally bullish trend for the benchmark index.
Long-Term Performance and Financial Trends
Over the past year, Gandhar Oil Refinery (India) has experienced a price decline of 48.69%, a stark contrast to the Sensex’s 4.52% gain over the same period. The stock’s 52-week high was Rs.244.55, highlighting the extent of the recent price contraction.
Examining the company’s financial performance over the last five years reveals subdued growth trends. Net sales have shown a compound annual rate of decline at approximately 2.76%, while operating profit has contracted at an annual rate of 21.51%. These figures suggest challenges in maintaining revenue and profitability growth over the medium term.
In addition, the stock has underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months, indicating a consistent lag relative to a broad market benchmark.
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Debt Profile and Valuation Metrics
Gandhar Oil Refinery (India) maintains a relatively low average debt-to-equity ratio of 0.10 times, indicating limited leverage on its balance sheet. This conservative capital structure may provide some cushion amid earnings pressures.
From a valuation standpoint, the company’s return on capital employed (ROCE) stands at 10.6%, which is considered attractive within its sector. The enterprise value to capital employed ratio is approximately 1, suggesting the stock is trading at a discount relative to its peers’ historical valuations.
Recent Quarterly Financial Highlights
The company’s latest quarterly results, reported in September 2025, showed some notable figures. Net sales for the quarter reached Rs.1,059.91 crore, the highest recorded in recent periods. Operating profit before depreciation, interest, and taxes (PBDIT) was Rs.65.84 crore, also the highest quarterly figure to date.
Additionally, the operating profit to interest coverage ratio for the quarter was 6.41 times, indicating the company’s earnings before interest comfortably cover its interest expenses. Despite these positive quarterly indicators, the overall profit for the year has declined by 11.6%, reflecting ongoing pressures on the bottom line.
Shareholding and Sectoral Position
The majority shareholding in Gandhar Oil Refinery (India) remains with promoters, maintaining a stable ownership structure. The company operates within the oil industry, a sector that has faced volatility due to fluctuating crude prices and regulatory factors.
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Summary of Current Position
Gandhar Oil Refinery (India) is currently positioned at a significant price level, having reached its lowest point in the past 52 weeks at Rs.122.25. The stock’s performance over the last year contrasts sharply with the broader market’s gains, reflecting sector-specific and company-specific factors.
While recent quarterly results show some operational strength in sales and profit before interest and taxes, the longer-term trends in sales growth and operating profit suggest subdued momentum. The company’s low leverage and attractive valuation metrics provide context to its current market standing.
Overall, the stock’s movement to a 52-week low highlights the challenges faced by Gandhar Oil Refinery (India) within the oil sector environment and the broader market dynamics.
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