Garg Furnace Ltd Stock Falls to 52-Week Low of Rs.120.1

Stock Price Movement and Market Context

On 27 Jan 2026, Garg Furnace Ltd’s stock hit an intraday low of Rs.120.1, representing a 4.95% drop from its previous close. The stock also experienced notable volatility, with an intraday price range between Rs.120.1 and Rs.132.9, the latter being a 5.18% intraday high. Despite this volatility, the stock closed lower, trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend.

In contrast, the broader Steel/Sponge Iron/Pig Iron sector gained 2.25% on the same day, while the Sensex recovered from an early negative opening to close 0.35% higher at 81,820.51 points. The S&P Bse Metal index also reached a new 52-week high, highlighting a divergence between Garg Furnace Ltd’s stock performance and its sector peers.

Performance Over the Past Year

Over the last 12 months, Garg Furnace Ltd’s stock has underperformed significantly, delivering a negative return of -40.47%, compared to the Sensex’s positive 8.61% gain and the BSE500’s 8.76% rise. The stock’s 52-week high was Rs.266, underscoring the steep decline to the current low. This underperformance has contributed to the company’s Mojo Score of 32.0 and a Mojo Grade of Sell, which was upgraded from Strong Sell on 20 Jan 2026.

Financial Metrics and Valuation

Despite the stock’s price weakness, Garg Furnace Ltd’s financials show some encouraging signs. The company reported a Profit After Tax (PAT) of Rs.7.27 crores for the nine months ended, reflecting a growth rate of 41.72%. Quarterly PBDIT reached a high of Rs.3.11 crores, with the operating profit to net sales ratio also peaking at 5.07%. These figures indicate an improvement in profitability metrics over recent quarters.

Additionally, the company maintains a strong debt servicing capacity, with a low Debt to EBITDA ratio of 0.89 times. Return on Equity (ROE) stands at 10.1%, and the stock trades at a Price to Book Value of 0.9, suggesting a valuation that is attractive relative to its peers’ historical averages. Profit growth over the past year has been 36.5%, which contrasts with the stock’s negative price performance.

Shareholding and Market Capitalisation

The majority shareholding in Garg Furnace Ltd remains with the promoters, providing a stable ownership structure. The company holds a Market Cap Grade of 4, reflecting its micro-cap status within the Iron & Steel Products sector. The stock’s day change was recorded at 1.70%, aligning with sector movements but insufficient to offset the broader downtrend.

Sector and Index Comparisons

While Garg Furnace Ltd’s stock has declined, the broader market environment shows mixed signals. The Sensex is trading below its 50-day moving average but above its 200-day moving average, indicating some medium-term consolidation. Mega-cap stocks are leading the market gains, whereas smaller stocks like Garg Furnace Ltd continue to face pressure. The divergence between the company’s stock and the sector’s positive performance highlights specific challenges faced by the company’s shares.

Summary of Key Indicators

To summarise, Garg Furnace Ltd’s stock has reached a new 52-week low of Rs.120.1, reflecting a significant decline of over 40% in the past year. This contrasts with the company’s improving profitability and strong debt metrics. The stock’s trading below all major moving averages and its underperformance relative to the sector and broader market indices underscore the challenges faced by the share price. However, the company’s valuation metrics remain reasonable, with a Price to Book Value below 1 and a return on equity above 10%.

Market participants will note the stock’s high intraday volatility of 5.06%, which may continue to influence trading dynamics in the near term. The divergence between Garg Furnace Ltd’s financial performance and its stock price highlights the complex interplay of market sentiment and sector trends affecting the company’s shares.

Conclusion

Garg Furnace Ltd’s stock performance over the last year has been marked by a substantial decline culminating in a fresh 52-week low. While the company’s financial results show growth in profits and a solid balance sheet, the stock remains under pressure amid broader market and sector movements. The current valuation metrics suggest the stock is trading at a fair level relative to its peers, but the price action indicates continued caution among market participants.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →