Gokul Refoils and Solvent Ltd Stock Hits 52-Week Low at Rs.33.9

Stock Price Movement and Market Context

On 10 Feb 2026, Gokul Refoils and Solvent Ltd’s share price slipped to Rs.33.9, the lowest level seen in the past year. This decline comes despite the broader market showing resilience, with the Sensex opening 144.25 points higher and trading at 84,258.24, up 0.23%. The Sensex is currently just 2.26% shy of its 52-week high of 86,159.02 and has been on a three-week consecutive rise, gaining 3.34% in that span. Mega-cap stocks are leading this market strength, contrasting with the edible oil sector where Gokul Refoils operates.

In comparison, Gokul Refoils has underperformed significantly, delivering a negative return of 33.65% over the last 12 months, while the Sensex has gained 8.96% in the same period. The stock’s 52-week high was Rs.58, highlighting the extent of the recent decline.

Technical Indicators Reflect Bearish Momentum

The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates sustained bearish momentum and a lack of short-term buying interest. The day’s price change was a decline of 0.58%, in line with the edible oil sector’s overall performance, which has been subdued.

Fundamental Performance and Financial Metrics

Gokul Refoils and Solvent Ltd’s long-term fundamentals have been under pressure, reflected in its current Mojo Score of 32.0 and a Mojo Grade of Sell, which was downgraded from Strong Sell on 8 Dec 2025. The company’s market capitalisation grade stands at 4, indicating a relatively modest market cap within its sector.

Over the past five years, the company has experienced a negative compound annual growth rate (CAGR) of -5.17% in operating profits, signalling challenges in sustaining profitability growth. The average return on equity (ROE) is 6.54%, which is considered low, indicating limited profitability generated per unit of shareholders’ funds.

Debt servicing capacity is a concern, with a high Debt to EBITDA ratio of 5.09 times, suggesting elevated leverage and potential strain on cash flows to meet debt obligations.

Recent Quarterly Results and Cash Position

Despite the broader challenges, the company has reported positive results for the last three consecutive quarters. The profit after tax (PAT) for the nine months ended stands at Rs.14.02 crores, reflecting a growth rate of 46.96%. Net sales for the same period reached Rs.2,849.15 crores, growing by 21.68%. Additionally, the company’s cash and cash equivalents at the half-year mark were at a peak of Rs.119.61 crores, providing some liquidity cushion.

Return on capital employed (ROCE) is recorded at 5%, and the enterprise value to capital employed ratio is 1, indicating a valuation that may be attractive relative to the company’s capital base. The stock is trading at a discount compared to its peers’ average historical valuations, with a price-to-earnings-to-growth (PEG) ratio of 0.9, reflecting moderate valuation metrics despite the price decline.

Comparative Performance and Shareholding

Gokul Refoils has underperformed not only the Sensex but also the BSE500 index over the last three years, one year, and three months, underscoring persistent relative weakness. The majority shareholding remains with promoters, maintaining control over the company’s strategic direction.

Summary of Key Financial and Market Indicators

To summarise, Gokul Refoils and Solvent Ltd’s stock has reached a new 52-week low of Rs.33.9 after a sustained period of decline. The company’s financial profile reveals subdued growth in operating profits, low return on equity, and a high leverage ratio. While recent quarterly results show positive growth in PAT and net sales, the stock’s valuation and price performance remain under pressure relative to the broader market and sector peers.

The stock’s technical indicators, including trading below all major moving averages, reinforce the current downtrend. Meanwhile, the Sensex and mega-cap stocks continue to demonstrate strength, highlighting the divergence in performance within the market.

Investors and market participants will note the company’s liquidity position and recent earnings growth, but these factors have yet to translate into a reversal in the stock’s price trajectory.

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