Key Events This Week
29 Dec 2025: Stock opens at Rs.179.70, gaining 0.98% amid broader market weakness
30 Dec 2025: Continued upward momentum with Rs.181.10 close (+0.78%) despite flat Sensex
31 Dec 2025: Stock hits Rs.182.50 (+0.77%) as Sensex rebounds strongly
1 Jan 2026: Minor pullback to Rs.182.00 (-0.27%) on low volume
2 Jan 2026: Rating upgrade to Hold and valuation shift drive Rs.183.80 close (+0.99%)
29 December 2025: Strong Start Despite Sensex Decline
GSFC began the week on a positive note, closing at Rs.179.70, up 0.98% from the previous Friday’s close of Rs.177.95. This gain was notable as the Sensex declined by 0.41% to 37,140.23, indicating relative strength in the stock. The volume of 55,496 shares suggested healthy investor interest despite broader market weakness. This early strength set the tone for the week’s upward trajectory.
30 December 2025: Continued Gains Amid Flat Market
The stock maintained its upward momentum, closing at Rs.181.10, a 0.78% increase. The Sensex was largely unchanged, dipping marginally by 0.01% to 37,135.83. The steady volume of 55,342 shares supported the price rise, reflecting sustained buying interest. This day’s performance reinforced GSFC’s resilience in a cautious market environment.
31 December 2025: Stock Advances as Sensex Rebounds
On the final trading day of 2025, GSFC closed at Rs.182.50, up 0.77%, coinciding with a strong Sensex rally of 0.83% to 37,443.41. The volume dipped to 38,682 shares, but the stock’s advance aligned with broader market optimism. This marked the highest close of the week so far, signalling positive investor sentiment heading into the new year.
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1 January 2026: Minor Pullback on Low Volume
Trading on New Year’s Day saw a slight decline in GSFC’s share price to Rs.182.00, down 0.27%. The volume was notably lower at 15,029 shares, reflecting subdued market activity. Meanwhile, the Sensex edged up 0.14% to 37,497.10. This minor pullback appeared to be a technical correction rather than a shift in fundamentals, as the stock remained near its weekly highs.
2 January 2026: Upgrade to Hold and Valuation Shift Boost Price
The week’s defining moment came with MarketsMOJO’s upgrade of GSFC’s investment rating from 'Sell' to 'Hold' on 1 January 2026, accompanied by a valuation grade improvement from 'Fair' to 'Attractive'. This was driven by the company’s competitive price-to-earnings ratio of 10.88, low price-to-book value of 0.58, and a PEG ratio of 0.41, signalling undervaluation relative to earnings growth potential.
On 2 January, GSFC’s stock responded positively, closing at Rs.183.80, up 0.99% on volume of 49,921 shares. The Sensex also gained 0.81% to 37,799.57. The upgrade reflected steady financial trends including a 20.38% annualised growth in operating profit and a dividend yield of 2.74%, alongside a very low debt-to-equity ratio. Institutional investors increased their holdings by 1.13%, underscoring confidence in the company’s outlook.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2025-12-29 | Rs.179.70 | +0.98% | 37,140.23 | -0.41% |
| 2025-12-30 | Rs.181.10 | +0.78% | 37,135.83 | -0.01% |
| 2025-12-31 | Rs.182.50 | +0.77% | 37,443.41 | +0.83% |
| 2026-01-01 | Rs.182.00 | -0.27% | 37,497.10 | +0.14% |
| 2026-01-02 | Rs.183.80 | +0.99% | 37,799.57 | +0.81% |
Key Takeaways from the Week
Positive Signals: The upgrade to a Hold rating and attractive valuation grade reflect improved investor sentiment and a more balanced outlook. GSFC’s valuation metrics, including a PE ratio of 10.88 and PEG of 0.41, position it favourably within the fertiliser sector. The company’s low debt, steady dividend yield of 2.74%, and positive quarterly financial trends underpin this optimism. Institutional buying further supports confidence in the stock’s prospects.
Cautionary Notes: Despite the recent gains, GSFC’s return on equity (5.36%) and return on capital employed (4.94%) remain modest, indicating limited profitability improvements. The stock’s one-year return is negative at -10.87%, underperforming the Sensex’s 8.51% gain, signalling challenges in sustaining momentum. The fertiliser sector’s cyclical nature and commodity price volatility continue to pose risks that investors should monitor closely.
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Conclusion: A Balanced Week Marked by Valuation Reassessment
Gujarat State Fertilizers & Chemicals Ltd’s performance over the week ending 2 January 2026 was characterised by steady price appreciation and a significant upgrade in valuation and rating. The stock outperformed the Sensex by nearly 2 percentage points, driven by improved financial metrics and a more attractive price relative to earnings and book value. While the company’s operational returns remain moderate, the low leverage and consistent dividend payout provide a defensive profile within the fertiliser sector.
The MarketsMOJO upgrade to a Hold rating with a Mojo Score of 50.0 reflects a cautious but positive reassessment of GSFC’s prospects. Investors should weigh the valuation appeal against the sector’s inherent cyclicality and the company’s modest profitability. Overall, the week’s developments suggest GSFC is positioned for measured progress, warranting close monitoring of financial trends and market conditions in the coming months.
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