Recent Price Movement and Market Context
On 4 December 2025, Gandhar Oil Refinery (India) recorded its lowest price in the past year at Rs.126.1. The stock has been on a downward trajectory for six consecutive trading sessions, resulting in a cumulative return of -3.84% over this period. Today’s decline of 0.98% further underlines the stock’s underperformance relative to its sector, which outpaced Gandhar Oil Refinery by 1.31% on the same day.
Notably, the 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 selling pressure and a lack of short- to medium-term momentum.
In contrast, the broader market has shown resilience. The Sensex, after an initial negative opening, rebounded by 321.53 points to close at 85,309.09, representing a 0.24% gain. The index remains close to its 52-week high of 86,159.02, trading above its 50-day and 200-day moving averages, signalling a generally bullish market environment. Mid-cap stocks led the gains with the BSE Mid Cap index rising by 0.26%.
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Long-Term Performance and Financial Trends
Over the past year, Gandhar Oil Refinery (India) has experienced a return of -46.79%, a stark contrast to the Sensex’s 5.40% gain during the same period. This divergence highlights the stock’s relative weakness within the broader market. The 52-week high for the stock was Rs.244.55, indicating that the current price represents a decline of nearly 48.5% from that peak.
Examining the company’s financial trajectory 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 at an annual rate of -21.51%. These figures suggest challenges in expanding revenue and maintaining profitability over the medium term.
In addition, the stock’s performance has lagged behind the BSE500 index across multiple time frames, including the last three years, one year, and three months. This underperformance underscores the company’s difficulties in keeping pace with broader market and sectoral trends.
Balance Sheet and Recent Quarterly Results
Despite the price decline, Gandhar Oil Refinery (India) maintains a relatively low average debt-to-equity ratio of 0.10 times, indicating limited reliance on debt financing. This conservative capital structure may provide some stability amid market fluctuations.
Recent quarterly results for the period ending September 2025 show some positive indicators. The company reported a profit after tax (PAT) of Rs.36.06 crores, which represents a growth of 91.2% compared to the average of the previous four quarters. Operating profit to interest coverage ratio reached 6.41 times, the highest in recent quarters, signalling improved ability to service interest obligations.
Net sales for the quarter stood at Rs.1,059.91 crores, the highest recorded in recent periods. These figures suggest pockets of operational strength despite the broader challenges faced by the company.
Valuation Metrics and Peer Comparison
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 a valuation level that is modest relative to the capital base.
Compared to its peers, the stock is trading at a discount to average historical valuations. However, this valuation discount accompanies a decline in profits of 11.6% over the past year, reflecting the company’s recent financial pressures.
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Shareholding and Market Position
The majority shareholding in Gandhar Oil Refinery (India) remains with the promoters, reflecting concentrated ownership. The company operates within the oil industry, a sector that has faced volatility due to fluctuating crude prices and evolving regulatory environments.
While the broader market indices and mid-cap segments have shown resilience and gains, Gandhar Oil Refinery’s stock continues to reflect the impact of its financial performance and sector-specific pressures.
Summary of Key Metrics
To summarise, Gandhar Oil Refinery (India) has reached a 52-week low of Rs.126.1, with a year-to-date return of -46.79%. The stock trades below all major moving averages and has underperformed both its sector and the broader market indices. Financial data over the last five years indicates a decline in net sales and operating profit, while recent quarterly results show some improvement in profitability and interest coverage. The company’s low debt-to-equity ratio and attractive ROCE provide some balance to the overall picture.
Investors and market watchers will note the contrast between the company’s recent financial results and its stock price performance, which remains subdued amid a generally positive market environment.
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