Gandhar Oil Refinery (India) Stock Falls to 52-Week Low of Rs.127.85

Stock 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, representing a continuation of a downward trend over the last five trading sessions. During this period, the stock has declined by approximately 2.77%. The current price level is substantially below its 52-week high of Rs.244.55, indicating a near 48% reduction from that peak.

The stock’s performance today was in line with the broader oil sector, which itself faced pressure amid a Sensex decline. The benchmark index opened flat with a marginal gain of 12.37 points but later retreated by 310.29 points, closing at 84,840.35, down 0.35%. Despite this, the Sensex remains close to its 52-week high, trading just 1.55% below the peak of 86,159.02. The index continues to trade above its 50-day moving average, which remains above the 200-day moving average, signalling a generally bullish trend for the broader market.

In contrast, Gandhar Oil Refinery (India) is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning reflects sustained selling pressure and a lack of upward momentum in the stock price over multiple time horizons.

Long-Term Performance and Financial Trends

Over the past year, Gandhar Oil Refinery (India) has delivered a total return of -44.33%, a stark contrast to the Sensex’s 4.91% gain during the same period. This underperformance extends beyond the last 12 months, 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 shown a compound annual decline of 2.76%, while operating profit has contracted at an annual rate of 21.51%. These figures suggest challenges in sustaining revenue growth and profitability over the medium term.

Despite these trends, the company 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 financial flexibility amid the current market conditions.

Recent Quarterly Results

The latest quarterly results, reported for the period ending September 2025, present a mixed picture. The company’s profit after tax (PAT) stood at Rs.36.06 crore, reflecting a 91.2% increase compared to the average of the previous four quarters. Operating profit to interest coverage ratio reached 6.41 times, the highest recorded, signalling improved ability to service interest expenses.

Net sales for the quarter were Rs.1,059.91 crore, the highest quarterly figure reported by the company. These results indicate some operational strength in the recent quarter despite the broader downward trend in the stock price.

Return on capital employed (ROCE) is reported at 10.6%, which is considered attractive relative to industry standards. The enterprise value to capital employed ratio stands at 1, suggesting the stock is trading at a valuation discount compared to its peers’ historical averages.

Shareholding and Sector Position

Gandhar Oil Refinery (India) operates within the oil industry, a sector that has experienced volatility in recent months. The company’s majority shareholding is held by promoters, which typically indicates a stable ownership structure.

Despite the recent price decline, the stock’s valuation metrics suggest it is trading at a discount relative to its historical norms and peer group averages. However, the stock’s performance relative to the broader market and sector indices remains subdued.

While the Sensex and oil sector indices maintain positions near their respective highs, Gandhar Oil Refinery (India) continues to trade below key technical levels, reflecting ongoing market caution.

Summary of Key Metrics

To summarise, the stock’s 52-week low of Rs.127.85 contrasts sharply with its 52-week high of Rs.244.55. The one-year return of -44.33% is significantly below the Sensex’s 4.91% gain. The company’s net sales and operating profit have shown negative compound annual growth rates over five years, while recent quarterly results indicate some improvement in profitability and interest coverage.

Gandhar Oil Refinery (India) maintains a low debt-to-equity ratio and an attractive ROCE, with valuation metrics suggesting a discount to peers. Nonetheless, the stock’s technical positioning below all major moving averages and its sustained price decline over recent sessions highlight the challenges it faces in regaining upward momentum.

Limited Time Only! Upgrade now and get 1 Year of Stock of the week worth Rs. 14,999 for FREE. Don't miss out on this exclusive offer. Claim Your Free Year →