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

Price Movement and Market Comparison

On 9 December 2025, Gandhar Oil Refinery (India) recorded a closing price of Rs.121.9, the lowest level since its listing. This price point represents a continuation of a two-day losing streak, during which the stock has fallen by 2.94%. The single-day decline of 1.63% contrasts with the Sensex’s movement of -0.74% on the same day, indicating a sharper contraction in Gandhar Oil’s share price relative to the broader market.

Over the past week, the stock has registered a decline of 6.17%, while the Sensex has moved down by 0.79%. The one-month performance shows a fall of 8.26% for Gandhar Oil Refinery (India), whereas the Sensex has posted a positive return of 1.51%. The divergence becomes more pronounced over longer periods: a three-month return of -17.18% for the stock contrasts with a 4.15% gain in the Sensex, and the one-year return for Gandhar Oil Refinery (India) stands at -49.83%, compared to the Sensex’s 3.63% increase.

Year-to-date figures further highlight the stock’s underperformance, with a decline of 43.19% against the Sensex’s 8.10% rise. Notably, Gandhar Oil Refinery (India) has not recorded any gains over the past three, five, and ten years, with returns flat at 0.00%, while the Sensex has advanced by 35.84%, 83.22%, and 237.39% respectively over these periods.

Technical Indicators and Moving Averages

< stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests a persistent bearish trend, with the stock price failing to find support at commonly watched technical levels. Such a pattern often signals continued pressure on the share price in the near term.

Financial Performance and Growth Trends

Gandhar Oil Refinery (India) has exhibited subdued growth over the medium to long term. Net sales have recorded a compound annual rate of decline of 2.76% over the last five years. Operating profit has shown a more pronounced contraction, with a compound annual rate of decline of 21.51% during the same period. These figures indicate challenges in expanding revenue and profitability.

Quarterly data from September 2025 reveals some of the company’s highest recent figures, with net sales reaching Rs.1,059.91 crore and PBDIT at Rs.65.84 crore. The operating profit to interest ratio for the quarter stood at 6.41 times, the highest recorded in recent periods. Despite these quarterly peaks, the overall trend in profitability over the past year shows a decline of 11.6% in profits.

Valuation and Capital Structure

The company’s return on capital employed (ROCE) is reported at 10.6%, which is considered a positive indicator of capital efficiency. Additionally, the enterprise value to capital employed ratio stands at 0.9, suggesting a valuation that is relatively attractive compared to historical averages of peer companies in the oil sector.

Gandhar Oil Refinery (India) maintains a low average debt-to-equity ratio of 0.10 times, reflecting a conservative approach to leverage. The majority shareholding remains with promoters, indicating concentrated ownership.

Relative Performance Within Sector and Market

When compared to the BSE500 index, Gandhar Oil Refinery (India) has underperformed over multiple time frames, including the last three months, one year, and three years. This underperformance is notable given the oil sector’s general trends and the broader market’s positive returns over these periods.

The stock’s performance today is in line with the oil sector’s movement, yet it continues to lag behind the Sensex and other broader indices. This persistent lag highlights the stock’s relative weakness within its industry and the wider market.

Summary of Key Challenges

The stock’s all-time low price reflects a combination of factors including subdued sales growth, declining operating profits, and sustained underperformance relative to market benchmarks. The absence of gains over extended periods, including three, five, and ten years, further underscores the stock’s challenges in delivering shareholder value.

Despite some quarterly improvements in sales and profitability metrics, the overall financial trajectory has not translated into positive returns for investors. The stock’s position below all major moving averages signals continued downward momentum in the near term.

While the company’s capital structure remains conservative with low leverage, and valuation metrics suggest a discount relative to peers, these factors have not yet been sufficient to reverse the stock’s prolonged decline.

Market Context and Sector Dynamics

Gandhar Oil Refinery (India) operates within the oil sector, which has experienced varied performance across companies and time frames. The stock’s recent price movement aligns with sector trends on the day of trading, yet its longer-term returns have not kept pace with sector averages or the broader market indices such as the Sensex.

This divergence highlights the stock’s distinct position within the sector, where it has not capitalised on broader industry gains or market rallies over the past several years.

Conclusion

The fall of Gandhar Oil Refinery (India) to an all-time low price of Rs.121.9 marks a significant event in the stock’s history, reflecting a sustained period of subdued financial performance and market underperformance. The data indicates that the stock has faced considerable headwinds over multiple time horizons, with limited signs of recovery in price or returns.

Investors and market participants observing Gandhar Oil Refinery (India) will note the stock’s position relative to key technical indicators and its financial metrics, which collectively portray a challenging environment for the company’s equity performance.

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