Stock Price Movement and Market Context
On 10 Dec 2025, Garg Furnace opened with a gain of 2.66%, reaching an intraday high of Rs.135.8, which represents a 3.27% increase from the previous close. This gain followed two consecutive days of decline, signalling a short-term reversal in the stock’s downward trend. However, the closing price at Rs.129 establishes a fresh 52-week low, underscoring the stock’s sustained weakness over the last twelve months.
The stock’s current trading level is notably below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a persistent bearish trend. This contrasts with the broader market, where the Sensex, despite a negative close of 84,391.27 points (down 0.32%), remains within 2.09% of its 52-week high of 86,159.02 points and trades above its 50-day and 200-day moving averages.
Comparative Performance Over One Year
Garg Furnace’s one-year performance shows a decline of 52.71%, a stark contrast to the Sensex’s positive return of 3.53% over the same period. The stock’s 52-week high was Rs.306.7, highlighting the extent of the price contraction. This underperformance is also evident when compared to the BSE500 index, which recorded a marginal gain of 0.18% in the last year.
Shareholding and Promoter Activity
Recent data reveals a reduction in promoter holdings by 3.5% during the previous quarter, bringing their stake to 53.41%. This decline in promoter shareholding may be interpreted as a shift in confidence levels regarding the company’s near-term prospects. Such changes in promoter participation often attract attention as indicators of internal sentiment towards the business environment and strategic direction.
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Financial Metrics and Profitability
Despite the stock’s price decline, Garg Furnace’s financial results for the nine months ending September 2025 show a profit after tax (PAT) of Rs.7.27 crores, reflecting a growth rate of 41.72%. The company’s quarterly PBDIT reached Rs.3.11 crores, the highest recorded in recent periods, while the operating profit to net sales ratio for the quarter stood at 5.07%, also a peak figure.
The company maintains a low debt-to-EBITDA ratio of 0.89 times, indicating a manageable debt burden relative to earnings before interest, tax, depreciation, and amortisation. This suggests that Garg Furnace has a capacity to service its debt obligations without significant strain.
Valuation and Return on Equity
Garg Furnace’s return on equity (ROE) is reported at 10.1%, which, combined with a price-to-book value of 1, points to an attractive valuation relative to its book value. However, the stock trades at a premium compared to the average historical valuations of its peers within the iron and steel products sector. Over the past year, while the stock price has declined by over half, the company’s profits have increased by approximately 36.5%, highlighting a divergence between market valuation and earnings performance.
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Sector and Market Environment
Garg Furnace operates within the iron and steel products sector, which has experienced mixed performance amid broader market fluctuations. While the Sensex has maintained a generally bullish stance, trading above key moving averages, Garg Furnace’s stock has not mirrored this trend. The divergence may reflect company-specific factors as well as sectoral pressures impacting valuation.
On the day of the new 52-week low, the Sensex opened flat but moved into negative territory, closing down by 216.22 points. This broader market softness may have contributed to the downward pressure on Garg Furnace’s share price, although the stock’s underperformance relative to the market over the past year suggests additional influences at play.
Summary of Key Price and Performance Data
To summarise, Garg Furnace’s stock price has declined from a 52-week high of Rs.306.7 to a new low of Rs.129, representing a substantial contraction in market value. The stock’s current trading level is below all major moving averages, and promoter shareholding has reduced in recent quarters. Despite these price movements, the company’s financial results show growth in profits and a stable debt position, with an ROE of 10.1% and a price-to-book ratio of 1.
This combination of factors paints a complex picture of Garg Furnace’s current standing within the iron and steel products sector, reflecting both market valuation pressures and underlying financial developments.
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