Stock Performance and Market Context
On 2 Feb 2026, Gujarat Toolroom Ltd (Stock ID: 331002), operating in the Plastic Products - Industrial sector, recorded a day change of -3.23%, continuing a two-day losing streak that has resulted in a cumulative decline of 3.17%. The stock’s current price of Rs.0.59 is substantially below its 52-week high of Rs.2.46, reflecting sustained pressure on the share price.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend. This underperformance is in line with the broader sector’s decline, as the Engineering sector fell by 2.16% on the same day. Meanwhile, the Sensex opened lower by 167.26 points and was trading at 80,551.29, down 0.21%, also below its 50-day moving average.
Financial Results and Recent Trends
Gujarat Toolroom Ltd’s financial results have been notably weak, contributing to the stock’s decline. The company reported a sharp fall in net sales by 97.01% in the quarter ending September 2025, with net sales dropping to Rs.8.08 crores. This marked a continuation of negative quarterly results, with the company posting losses for three consecutive quarters and a negative PAT (profit after tax) of Rs.-0.35 crores in the latest quarter, a decline of 101.3%.
Operating cash flow for the year has also deteriorated significantly, reaching a low of Rs.-262.37 crores. The company’s financial performance has been below par both in the near term and over the long term, with profits falling by 29% over the past year. This has contributed to the stock’s underperformance relative to the BSE500 index over one year, three years, and three months.
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Valuation and Efficiency Metrics
Despite the recent setbacks, Gujarat Toolroom Ltd exhibits some positive financial characteristics. The company maintains a high return on equity (ROE) of 35.06%, indicating efficient utilisation of shareholder funds. Additionally, the average debt-to-equity ratio remains low at 0.09 times, suggesting limited leverage and a conservative capital structure.
Long-term growth metrics show a remarkable annualised net sales growth rate of 1,821.30% and operating profit growth of 476.47%, reflecting historical expansion. The return on capital employed (ROCE) stands at 2, and the enterprise value to capital employed ratio is 0.4, indicating an attractive valuation relative to capital invested. The stock currently trades at a discount compared to its peers’ average historical valuations, which may reflect market caution given recent results.
Shareholding and Market Grade
The majority of Gujarat Toolroom Ltd’s shares are held by non-institutional investors. The company’s Mojo Score is 29.0, with a Mojo Grade of Strong Sell as of 8 Dec 2025, an upgrade from the previous Sell rating. The market capitalisation grade is rated 4, reflecting the company’s micro-cap status and associated liquidity considerations.
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Sector and Broader Market Environment
The Plastic Products - Industrial sector, in which Gujarat Toolroom Ltd operates, has faced headwinds recently, with the Engineering sector declining by 2.16% on the day the stock hit its 52-week low. Other indices such as the S&P BSE FMCG and NIFTY FMCG also recorded new 52-week lows on the same day, reflecting a cautious market environment.
The Sensex, while trading below its 50-day moving average, still maintains a 50-day average above its 200-day average, indicating a mixed technical picture for the broader market. Gujarat Toolroom Ltd’s underperformance relative to these benchmarks highlights the specific challenges faced by the company within this context.
Summary of Key Financial Indicators
To summarise, Gujarat Toolroom Ltd’s recent financial and market data include:
- Net sales decline of 97.01% in the latest quarter to Rs.8.08 crores
- Negative PAT of Rs.-0.35 crores, down 101.3%
- Operating cash flow at a low of Rs.-262.37 crores for the year
- One-year stock return of -66.87% versus Sensex’s 3.93%
- High ROE of 35.06% and low debt-to-equity ratio of 0.09 times
- Mojo Grade of Strong Sell with a score of 29.0 as of December 2025
These figures illustrate the significant pressures on Gujarat Toolroom Ltd’s stock price and financial health, culminating in the recent 52-week low of Rs.0.59.
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