Recent Price Movement and Market Context
On 4 December 2025, Gandhar Oil Refinery (India) recorded its lowest price ever at Rs.126.1. This level represents a fresh 52-week low, underscoring the stock’s extended period of underperformance. Over the past six trading sessions, the stock has registered a cumulative return of -3.72%, indicating a consistent retreat from previous levels. Despite a marginal uptick of 0.08% on the day, the stock underperformed its sector by 0.99% and lagged behind the broader Sensex, which posted a 0.17% gain.
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 technical positioning highlights the prevailing bearish sentiment and the absence of short-term momentum.
Comparative Performance Over Various Timeframes
Examining Gandhar Oil Refinery’s performance relative to benchmark indices reveals a stark contrast. Over the last week, the stock declined by 2.48%, while the Sensex fell by 0.55%. The one-month period shows a 4.45% reduction in the stock’s value, contrasting with a 2.15% gain in the Sensex. The disparity widens over three months, with the stock down 14.34% against a 5.62% rise in the Sensex.
Longer-term figures are more pronounced. Over the past year, Gandhar Oil Refinery’s stock value has contracted by 46.22%, whereas the Sensex has advanced by 5.31%. Year-to-date, the stock has declined by 40.00%, while the Sensex has appreciated by 9.10%. Notably, the stock has not recorded any gains over three, five, or ten-year horizons, remaining flat, while the Sensex has delivered returns of 35.60%, 89.12%, and 232.52% respectively over these periods.
Financial Growth and Profitability Trends
Over the last five years, Gandhar Oil Refinery’s net sales have shown a negative compound annual growth rate of 2.76%, indicating a contraction in revenue generation. Operating profit has exhibited a sharper decline, with an annual rate of 21.51% over the same period. These figures suggest subdued growth dynamics and pressure on profitability.
Despite the overall downtrend, the company reported some positive quarterly results in September 2025. Profit after tax (PAT) for the quarter stood at Rs.36.06 crores, reflecting a 91.2% increase compared to the average of the previous four quarters. Operating profit to interest ratio reached a high of 6.41 times, signalling a comfortable coverage of interest expenses. Net sales for the quarter were recorded at Rs.1,059.91 crores, the highest in recent periods.
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Valuation and Capital Structure
Gandhar Oil Refinery’s return on capital employed (ROCE) stands at 10.6%, which is considered attractive within its sector. The company’s enterprise value to capital employed ratio is approximately 1, suggesting a valuation level that is discounted relative to its peers’ historical averages. This valuation context reflects market caution amid the company’s recent performance.
The company maintains a low average debt-to-equity ratio of 0.10 times, indicating limited leverage and a conservative capital structure. Majority ownership remains with promoters, providing a stable shareholder base.
Profitability and Returns Analysis
While the quarterly profit figures showed improvement, the annual profit trend has been less favourable. Over the past year, profits have declined by 11.6%, aligning with the broader negative return of 46.22% in the stock price. This divergence between quarterly and annual results highlights variability in the company’s earnings performance.
In comparison to the BSE500 index, Gandhar Oil Refinery has underperformed over the last three years, one year, and three months, reflecting challenges in maintaining competitive returns within the broader market.
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Summary of Market Position
Gandhar Oil Refinery (India) operates within the oil industry and sector, where it faces a competitive environment. The stock’s recent all-time low price and extended period of negative returns highlight the difficulties encountered in sustaining growth and shareholder value. Despite some quarterly improvements in profitability and a conservative debt profile, the stock’s valuation and price performance reflect a cautious market stance.
Investors and market participants will note the divergence between short-term quarterly results and longer-term financial trends, as well as the stock’s relative underperformance compared to major indices and sector peers.
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