Recent Price Movement and Market Context
The stock has experienced a continuous decline over the past six trading sessions, resulting in a cumulative return of -3.84% during this period. Today's fall of 0.98% further extends this downward trend. Notably, 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, indicating sustained pressure on the stock price.
In contrast, the broader market has shown resilience. The Sensex, after an initial negative opening with a drop of 119.25 points, rebounded to close 0.24% higher at 85,309.09 points. The index remains just 1% shy of its 52-week high of 86,159.02 and is supported by bullish moving averages, with the 50-day average positioned above the 200-day average. Mid-cap stocks are also leading gains, with the BSE Mid Cap index rising by 0.26% today.
Long-Term Performance and Sector Comparison
Over the last year, Gandhar Oil Refinery (India) has recorded a return of -46.79%, a stark contrast to the Sensex’s 5.40% gain over the same period. The stock’s 52-week high was Rs.244.55, underscoring the extent of the decline to the current low. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index over the past three years, one year, and three months.
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Financial Metrics and Growth Trends
Gandhar Oil Refinery (India) has exhibited subdued growth over the longer term. Net sales have shown a compound annual decline of 2.76% over the past five years, while operating profit has contracted at an annual rate of 21.51% during the same period. These figures reflect challenges in expanding revenue and profitability within the oil sector.
Despite the overall decline in returns, the company reported some positive quarterly results in September 2025. The profit after tax (PAT) for the quarter stood at Rs.36.06 crore, representing a 91.2% increase compared to the average of the previous four quarters. Operating profit to interest coverage reached a high of 6.41 times, and net sales for the quarter were Rs.1,059.91 crore, the highest recorded in recent periods.
Valuation and Capital Structure
The company’s return on capital employed (ROCE) is recorded at 10.6%, which is considered attractive relative to its valuation metrics. The enterprise value to capital employed ratio stands at 1, suggesting a valuation discount compared to historical averages of its peers. The average debt-to-equity ratio remains low at 0.10 times, indicating a conservative capital structure with limited leverage.
Shareholding and Market Position
Promoters continue to hold the majority stake in Gandhar Oil Refinery (India), maintaining significant control over the company’s strategic direction. The stock’s performance relative to its sector peers and the broader market has been subdued, reflecting the challenges faced by the company in recent years.
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Summary of Current Situation
Gandhar Oil Refinery (India) is currently trading at a significant low point, with its share price at Rs.126.1 marking a 52-week and all-time low. The stock’s performance over the past year and longer term has been below market averages and sector benchmarks. While recent quarterly results show some improvement in profitability and sales, the overall trend in returns and growth metrics remains subdued.
The broader market environment contrasts with the stock’s trajectory, as the Sensex and mid-cap indices demonstrate strength and positive momentum. The stock’s position below all major moving averages further emphasises the current downward pressure on its price.
Investors and market participants observing Gandhar Oil Refinery (India) will note the company’s low leverage and attractive valuation ratios, which may be relevant in assessing its financial health. However, the persistent decline in sales and operating profit over the past five years highlights ongoing challenges in the company’s growth trajectory within the oil sector.
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