Stock Performance and Market Context
On 8 December 2025, Gandhar Oil Refinery (India) recorded an intraday low of Rs.122.25, representing a fall of 2.74% for the day. The stock underperformed its sector by 2.23%, reflecting a challenging trading session. This price level also represents the lowest point the stock has traded at in the past 52 weeks, as well as its all-time low.
The broader market, represented by the Sensex, opened flat but later declined by 231.68 points, or 0.37%, closing at 85,393.16. Despite this, the Sensex remains close to its 52-week high of 86,159.02, trading just 0.9% below that peak. The index is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average, signalling underlying market strength contrasting with Gandhar Oil Refinery’s performance.
Technical Indicators and Moving Averages
Gandhar Oil Refinery’s stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates sustained downward momentum over multiple timeframes. The stock’s failure to hold above these averages suggests persistent selling pressure and a lack of short-term support levels.
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Long-Term Performance and Financial Trends
Over the past year, Gandhar Oil Refinery’s stock has recorded a return of -48.69%, a stark contrast to the Sensex’s 4.52% gain during the same period. The stock’s 52-week high was Rs.244.55, indicating a near 50% reduction in value over the last twelve months.
Examining the company’s financial performance over the last five years reveals subdued growth trends. Net sales have shown a compound annual rate of -2.76%, while operating profit has reflected a decline of -21.51%. These figures suggest that the company has faced challenges in expanding its revenue base and maintaining profitability over the medium term.
Comparative Sector and Index Performance
Gandhar Oil Refinery’s returns have also lagged behind the broader BSE500 index over multiple time horizons, including the last three years, one year, and three months. This underperformance relative to a wide market benchmark highlights the stock’s relative weakness within the Indian equity market.
Balance Sheet and Debt Position
The company maintains a low average debt-to-equity ratio of 0.10 times, indicating a conservative capital structure with limited reliance on debt financing. This low leverage may provide some financial stability, although it has not translated into stronger stock performance in recent periods.
Recent Quarterly Highlights
In the quarter ending September 2025, Gandhar Oil Refinery reported its highest operating profit to interest ratio at 6.41 times, signalling a comfortable coverage of interest expenses by operating earnings. Net sales for the quarter reached Rs.1,059.91 crore, the highest recorded in recent periods, while PBDIT (Profit Before Depreciation, Interest and Taxes) stood at Rs.65.84 crore, also a peak for the company.
Valuation Metrics
The company’s return on capital employed (ROCE) is 10.6%, which is considered attractive within its sector. Additionally, the enterprise value to capital employed ratio is at 1, suggesting that the stock is trading at a discount relative to its peers’ historical valuations. Despite this, the stock’s price has not reflected these valuation factors, as evidenced by its recent lows.
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Shareholding and Corporate Structure
The majority of Gandhar Oil Refinery’s shares are held by promoters, indicating concentrated ownership. This structure often implies a stable controlling interest, though it has not prevented the stock from experiencing significant price declines over the past year.
Profitability Trends
While the company’s profits have fallen by 11.6% over the past year, the quarterly results show some peaks in key metrics. This mixed picture suggests that while certain operational aspects have reached new highs, overall profitability has faced downward pressure.
Summary of Current Concerns
The stock’s fall to Rs.122.25, its lowest level in 52 weeks, reflects a combination of subdued revenue growth, declining operating profits, and underperformance relative to market benchmarks. The technical positioning below all major moving averages further emphasises the current weakness in the stock’s price action. Despite some positive quarterly indicators and a conservative debt profile, the market has not responded favourably to these factors in recent months.
Market Environment
In contrast to Gandhar Oil Refinery’s performance, the broader Sensex index remains near its 52-week high and trades above key moving averages, indicating a generally positive market environment. This divergence highlights the stock’s specific challenges within the oil sector and the wider market.
Conclusion
Gandhar Oil Refinery (India) currently trades at a significant discount to its 52-week high, with its stock price at Rs.122.25 marking a new low. The company’s financial data over recent years shows limited growth and profitability pressures, while technical indicators point to continued downward momentum. These factors collectively contribute to the stock’s current valuation and market position.
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