Gandhar Oil Refinery (India) Stock Hits All-Time Low Amid Prolonged Downtrend

Recent Price Movement and Market Context

On 4 December 2025, Gandhar Oil Refinery (India) recorded its lowest-ever trading price at Rs.126.1. This level represents a fresh 52-week low and an all-time trough for the stock. Over the last six trading sessions, the stock has delivered a cumulative return of -3.72%, underperforming its sector by 0.99% on the day of the new low. The stock’s performance contrasts with the broader market, as the Sensex showed a modest gain of 0.17% on the same day.

The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning indicates a persistent downward momentum relative to its recent historical price levels.

Comparative Performance Over Various Timeframes

Examining Gandhar Oil Refinery’s returns over multiple periods reveals a pattern of underperformance compared to the Sensex benchmark. Over the past week, the stock declined by 2.48%, while the Sensex fell by 0.55%. The one-month return shows a decrease of 4.45%, contrasting with a 2.15% gain in the Sensex. Over three months, the stock’s return was -14.34%, whereas the Sensex appreciated by 5.62%.

Longer-term figures further highlight the disparity. The stock’s one-year return stands at -46.22%, compared to a 5.31% gain in the Sensex. Year-to-date, Gandhar Oil Refinery’s stock has declined by 40.00%, while the Sensex has advanced by 9.10%. Over three, five, and ten years, the stock has shown no growth, remaining flat, whereas the Sensex has delivered returns of 35.60%, 89.12%, and 232.52% respectively.

Financial Growth and Profitability Trends

Over the last five years, Gandhar Oil Refinery’s net sales have shown a compound annual rate of change of -2.76%, indicating a contraction in revenue generation. Operating profit has reflected a sharper decline, with an annual rate of -21.51% over the same period. These figures suggest subdued growth dynamics within the company’s core operations.

Profitability metrics over the past year also illustrate challenges. The company’s profits have fallen by 11.6%, while the stock price has declined by 46.22%. This divergence points to a market valuation that has moved more sharply than the underlying profit contraction.

Balance Sheet and Valuation Metrics

Gandhar Oil Refinery maintains a relatively low average debt-to-equity ratio of 0.10 times, indicating limited leverage on its balance sheet. The company’s return on capital employed (ROCE) stands at 10.6%, which is considered attractive within its sector. Additionally, the enterprise value to capital employed ratio is approximately 1, suggesting a valuation level that is modest relative to the capital invested in the business.

Despite the recent price decline, the stock is trading at a discount compared to the average historical valuations of its peers in the oil industry. This valuation context reflects the market’s current assessment of the company’s financial and operational position.

Quarterly Performance Highlights

In the quarter ending September 2025, Gandhar Oil Refinery reported net sales of Rs.1,059.91 crores, the highest quarterly figure recorded. Profit after tax (PAT) for the quarter was Rs.36.06 crores, representing a growth rate of 91.2% compared to the previous four-quarter average. The operating profit to interest coverage ratio reached 6.41 times, the highest level observed, indicating a strong ability to meet interest obligations from operating earnings.

Shareholding and Market Capitalisation

The majority shareholding in Gandhar Oil Refinery remains with the promoters, maintaining control over the company’s strategic direction. The stock’s market capitalisation grade is rated at 3, reflecting its position within the small-cap segment of the market.

Summary of Market Position

Gandhar Oil Refinery (India) is currently navigating a period marked by a significant decline in its stock price, reaching an all-time low. The company’s financial data over recent years points to subdued sales growth and a contraction in operating profit. While quarterly results show some positive indicators in sales and profit after tax, the overall market performance and valuation reflect a cautious stance.

The stock’s performance relative to the Sensex and its sector peers highlights a divergence from broader market trends, with Gandhar Oil Refinery lagging behind in returns across multiple time horizons. Its low leverage and attractive ROCE provide some balance to the valuation picture, yet the persistent downward price movement underscores the challenges faced by the company in the current market environment.

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