Garg Furnace Stock Falls to 52-Week Low of Rs.140 Amid Market Underperformance

Nov 25 2025 12:42 PM IST

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Shares of Garg Furnace, a player in the Iron & Steel Products sector, reached a fresh 52-week low of Rs.140 today, marking a significant decline amid a broader market environment that has seen the stock underperform its sector and benchmark indices over the past year.

Recent Price Movement and Market Context

On 25 Nov 2025, Garg Furnace's stock price touched an intraday low of Rs.140, representing a fall of 5.95% during the trading session. The stock has been on a downward trajectory for four consecutive days, resulting in a cumulative return of -10.15% over this period. This decline contrasts with the broader market, where the Sensex opened higher at 85,008.93 points, gaining 108.22 points (0.13%) before trading near 84,928.25 points, just 1.03% shy of its 52-week high of 85,801.70. The Sensex's positive momentum is supported by its position above the 50-day moving average, which itself is above the 200-day moving average, signalling a generally bullish trend for the benchmark index.

Despite the overall market strength, Garg Furnace has underperformed its sector and the broader market indices. The stock's day performance lagged the Iron & Steel Products sector by 4.94%, and it currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates sustained selling pressure and a lack of short-term momentum.

Long-Term Performance and Shareholding Trends

Over the last twelve months, Garg Furnace's stock has recorded a return of -50.68%, a stark contrast to the Sensex's positive return of 6.02% and the BSE500's 4.62% gain during the same period. The stock's 52-week high was Rs.307, underscoring the extent of the decline to the current low of Rs.140.

One notable development is the reduction in promoter shareholding. Promoters have lowered their stake by 3.5% in the previous quarter, now holding 53.41% of the company. This decrease may be interpreted as a shift in confidence levels regarding the company's near-term prospects.

Financial Metrics and Operational Highlights

Despite the stock's price challenges, Garg Furnace's financial indicators present a mixed picture. 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 a capacity to service debt obligations without significant strain.

Recent quarterly results for the period ending September 2025 show a Profit After Tax (PAT) of Rs.2.74 crores, reflecting a growth of 49.7% compared to the previous four-quarter average. The Profit Before Depreciation, Interest, and Tax (PBDIT) reached Rs.3.11 crores, the highest recorded in recent quarters. Additionally, the operating profit to net sales ratio stood at 5.07%, marking a peak in operational efficiency for the company.

From a valuation standpoint, Garg Furnace exhibits a Return on Equity (ROE) of 10.1%, which is considered attractive within its industry. The Price to Book Value ratio is 0.9, indicating the stock is trading close to its book value. However, it is noted that the stock trades at a premium relative to the average historical valuations of its peers.

Over the past year, while the stock price has declined by over half, the company's profits have risen by 36.5%. The Price/Earnings to Growth (PEG) ratio stands at 0.5, reflecting the relationship between valuation and earnings growth.

Sector and Market Comparison

The Iron & Steel Products sector has experienced varied performance across its constituents, with Garg Furnace's recent price action placing it among the weaker performers. While small-cap stocks have shown modest gains, with the BSE Small Cap index up by 0.09% on the day, Garg Furnace's stock has not mirrored this trend.

The divergence between Garg Furnace's stock performance and the broader market indices highlights the challenges faced by the company in maintaining investor confidence and market valuation. The stock's position below all major moving averages further emphasises the current bearish sentiment.

Summary of Key Price and Performance Data

To summarise, Garg Furnace's stock has:

Reached a new 52-week low of Rs.140 on 25 Nov 2025

Experienced a four-day consecutive decline with a cumulative return of -10.15%

Underperformed the Iron & Steel Products sector by 4.94% on the day

Recorded a one-year return of -50.68% compared to Sensex's 6.02%

Seen promoter shareholding reduce by 3.5% in the previous quarter

Maintained a low Debt to EBITDA ratio of 0.89 times

Reported improved quarterly profits with PAT at Rs.2.74 crores and PBDIT at Rs.3.11 crores

Displayed an ROE of 10.1% and a Price to Book Value of 0.9

These data points provide a comprehensive view of Garg Furnace's current market standing and financial health amid its recent stock price decline.

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