Recent Price Movement and Market Context
Gandhar Oil Refinery (India) recorded a day-on-day decline of 1.04%, underperforming its sector by 0.47%. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the Sensex, which after a negative start, rebounded to close at 85,390.62, a gain of 0.15%, and remains within 0.9% of its 52-week high of 86,159.02. The Sensex's upward trend is supported by its position above the 50-day moving average, which itself is above the 200-day moving average, indicating a bullish market environment.
Long-Term Performance and Financial Trends
Over the past year, Gandhar Oil Refinery (India) has delivered a return of -46.78%, a stark contrast to the Sensex's 4.44% gain during the same period. The stock's 52-week high was Rs.244.55, highlighting the extent of its decline. The company’s net sales have shown a negative compound annual growth rate of 2.76% over the last five years, while operating profit has reflected a sharper contraction at an annual rate of 21.51%. These figures indicate subdued growth and profitability pressures over the medium term.
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Comparative Sector and Market Performance
Gandhar Oil Refinery (India) has underperformed not only the Sensex but also the BSE500 index over the last three years, one year, and three months. This underperformance reflects challenges in both long-term and near-term financial metrics. Despite operating in the oil sector, which has seen some recovery and strength in mega-cap stocks, Gandhar Oil Refinery’s market capitalisation grade remains modest at 3, indicating a relatively smaller market presence compared to larger peers.
Financial Health and Quarterly Highlights
The company maintains a low average debt-to-equity ratio of 0.10 times, suggesting limited leverage and a conservative capital structure. Recent quarterly results from September 2025 show some positive indicators: operating profit to interest coverage reached 6.41 times, net sales for the quarter were Rs.1,059.91 crore, and PBDIT stood at Rs.65.84 crore, the highest recorded in recent periods. These figures point to pockets of operational strength despite the broader downward trend in stock price.
Valuation Metrics
Gandhar Oil Refinery (India) exhibits a return on capital employed (ROCE) of 10.6%, which is considered attractive within its sector. The enterprise value to capital employed ratio stands at 1, indicating the stock is trading at a discount relative to its peers’ historical valuations. However, over the past year, profits have declined by 11.6%, reflecting ongoing pressures on earnings despite the valuation appeal.
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Shareholding and Market Position
The majority shareholding in Gandhar Oil Refinery (India) remains with promoters, indicating concentrated ownership. This structure often influences strategic decisions and market perception. Despite the stock’s recent lows, the company continues to operate within the oil sector, which is subject to global commodity price fluctuations and regulatory factors that can impact performance.
Summary of Key Price and Performance Indicators
To summarise, Gandhar Oil Refinery (India) has reached a new 52-week low of Rs.123.55, following a week of consecutive declines. The stock’s performance over the last year shows a significant reduction in returns, contrasting with the broader market’s positive trajectory. Financial data reveals subdued sales growth and profitability over the medium term, although recent quarterly results show some operational metrics at peak levels. The company’s valuation metrics suggest it is trading at a discount relative to peers, supported by a low debt profile and an attractive ROCE.
While the broader market and sector indices have shown resilience and gains, Gandhar Oil Refinery (India) remains under pressure, reflecting a complex interplay of company-specific and sector-wide factors.
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