Recent Price Movement and Market Context
On 3 December 2025, Gandhar Oil Refinery (India) recorded its lowest price in the past year at Rs.127.85. This level also represents the stock’s all-time low. Over the last five trading days, the stock has declined by approximately 2.77%, with a day-on-day change of -0.47% on the latest session. This movement aligns with the sector’s performance, which has also experienced some softness.
In contrast, the broader market index, the Sensex, opened flat but later declined by 310.29 points, or 0.35%, closing at 84,840.35. Despite this dip, the Sensex remains close to its 52-week high of 86,159.02, trading just 1.55% below that peak. The index continues to trade above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish trend at the market level.
However, Gandhar Oil Refinery’s stock price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests sustained downward momentum relative to its recent trading history.
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Long-Term Performance and Financial Trends
Over the past year, Gandhar Oil Refinery’s stock has shown a return of -44.33%, a stark contrast to the Sensex’s 4.91% gain during the same period. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index over the last three years, one year, and three months.
Examining the company’s financial growth over the last five years reveals subdued trends. Net sales have declined at an annual rate of approximately 2.76%, while operating profit has contracted at a rate of 21.51% annually. These figures indicate challenges in sustaining revenue and profitability growth over the medium term.
Despite these trends, the company maintains a relatively low average debt-to-equity ratio of 0.10 times, suggesting limited leverage and a conservative capital structure.
Quarterly Financial Highlights
The most recent quarterly results, reported in September 2025, show some positive metrics. The profit after tax (PAT) for the quarter stood at Rs.36.06 crore, reflecting a growth rate of 91.2% compared to the average of the previous four quarters. Operating profit to interest coverage ratio reached 6.41 times, the highest recorded, indicating improved ability to service interest expenses.
Net sales for the quarter were Rs.1,059.91 crore, also the highest quarterly figure reported by the company. These quarterly results suggest pockets of operational strength despite the broader downward trend in stock price and longer-term financial performance.
Valuation and Return on Capital Employed
Gandhar Oil Refinery’s return on capital employed (ROCE) is reported at 10.6%, which is considered attractive within its sector. The enterprise value to capital employed ratio stands at 1, indicating a valuation level that is discounted relative to historical averages of its peers. However, the stock’s price performance over the past year has not reflected these valuation metrics, as profits have declined by 11.6% during the same period.
Shareholding and Sector Position
The company operates within the oil industry and oil sector, with promoters holding the majority shareholding. This ownership structure often implies a stable controlling interest, though it does not necessarily shield the stock from market fluctuations or sector-specific pressures.
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Summary of Key Metrics
To summarise, Gandhar Oil Refinery (India) has experienced a notable decline in its stock price, culminating in a 52-week low of Rs.127.85. The stock’s performance contrasts with the broader market’s relative strength, as the Sensex remains near its yearly high. The company’s financial data over recent years shows subdued sales growth and contracting operating profits, while quarterly results indicate some improvement in profitability and interest coverage.
The stock’s valuation metrics suggest it is trading at a discount compared to peers, supported by a reasonable ROCE and low leverage. However, the price action and moving average trends reflect ongoing market caution. Investors and market watchers will note the divergence between quarterly operational improvements and the longer-term price trajectory.
Market and Sector Considerations
The oil sector continues to face a complex environment with fluctuating commodity prices and evolving demand patterns. Gandhar Oil Refinery’s stock performance may be influenced by these broader sector dynamics as well as company-specific factors. The stock’s position below all major moving averages highlights the current market sentiment and technical challenges it faces.
Conclusion
Gandhar Oil Refinery (India) has reached a significant price milestone with its 52-week low, reflecting a combination of subdued long-term financial trends and recent market pressures. While quarterly results show some positive developments, the stock’s overall trajectory remains cautious in the context of sector and market conditions.
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