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. The stock has been on a downward trajectory for five consecutive trading sessions, resulting in a cumulative return of -2.77% over this period. Today’s decline of 0.47% was in line with the sector’s performance, reflecting a cautious sentiment within the oil industry segment.
In contrast, the broader market index, the Sensex, opened flat with a marginal change of 12.37 points but later declined by 354.77 points, closing at 84,795.87, down 0.4%. Despite this fall, the Sensex remains close to its 52-week high of 86,159.02, trading just 1.61% below that peak. The index is currently positioned above its 50-day moving average, which itself is above the 200-day moving average, indicating a generally bullish trend for the broader market.
Technical Indicators and Moving Averages
Gandhar Oil Refinery’s share price is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This persistent weakness across short, medium, and long-term technical indicators highlights the stock’s subdued momentum relative to its historical price levels.
The 52-week high for the stock stands at Rs.244.55, illustrating a substantial gap between the current price and the peak level reached within the last year. This wide range underscores the stock’s volatility and the challenges it has faced over the period.
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Long-Term Performance and Financial Trends
Over the past year, Gandhar Oil Refinery (India) has recorded a return of -44.33%, a figure that contrasts sharply with the Sensex’s 4.89% return during the same period. This underperformance extends beyond the last year, with the stock also 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 a decline in net sales at an annual rate of -2.76%. Operating profit has shown a more pronounced contraction, with a negative annual rate of -21.51%. These figures indicate subdued growth trends in both top-line and operating profitability metrics.
Debt Levels and Capital Structure
Gandhar Oil Refinery maintains a relatively low average debt-to-equity ratio of 0.10 times, suggesting a conservative approach to leverage. This low gearing level may provide some financial flexibility, although it has not translated into stronger stock performance in recent periods.
Quarterly Financial Highlights
The company’s quarterly results for September 2025 show some positive aspects. Profit after tax (PAT) for the quarter stood at Rs.36.06 crores, reflecting a growth of 91.2% compared to the previous four-quarter average. Operating profit to interest ratio reached 6.41 times, the highest recorded, indicating improved coverage of interest expenses. Net sales for the quarter were Rs.1,059.91 crores, also the highest quarterly figure reported.
Return on capital employed (ROCE) is reported at 10.6%, which is considered attractive relative to valuation metrics. The enterprise value to capital employed ratio stands at 1, suggesting the stock is trading at a discount compared to its peers’ historical valuations.
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Shareholding and Market Capitalisation
The majority of Gandhar Oil Refinery’s shares are held by promoters, indicating concentrated ownership. The company’s market capitalisation grade is rated at 3, reflecting its position within the market capitalisation spectrum.
Despite the recent price decline, the stock’s valuation metrics suggest it is trading at a discount relative to its historical peer group averages. However, the stock’s returns over the past year have been negative, with profits falling by 11.6% during the same period.
Summary of Current Concerns
The stock’s fall to a 52-week low of Rs.127.85 is underpinned by a combination of factors including subdued long-term sales growth, contraction in operating profit, and underperformance relative to broader market indices. The persistent trading below all major moving averages further highlights the stock’s current weak momentum.
While quarterly results show some improvement in profitability and interest coverage, these have not yet translated into a sustained recovery in the share price. The company’s low leverage and attractive valuation ratios provide some context for its financial position, but the overall market assessment remains cautious.
Broader Market Comparison
In comparison to the Sensex, which is trading near its 52-week high and maintaining a bullish stance above key moving averages, Gandhar Oil Refinery’s stock performance stands out for its relative weakness. This divergence highlights the challenges faced by the company within the oil sector and the broader market environment.
Conclusion
Gandhar Oil Refinery (India) has reached a significant price level with its 52-week low of Rs.127.85, reflecting ongoing pressures on its stock price amid subdued financial growth and market conditions. The stock’s position below all major moving averages and its underperformance relative to the Sensex and sector peers illustrate the hurdles it currently faces. Quarterly financial data presents some positive signs, but these have yet to influence the stock’s broader market trajectory.
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