Stock Performance and Market Context
The stock has been on a declining streak for the past three consecutive sessions, shedding approximately 8.45% over this period. Today’s fall of 3.03% aligns with the sector’s overall performance, indicating sector-wide pressures rather than isolated stock-specific events. Gujarat Toolroom Ltd is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring the persistent bearish momentum.
In comparison, the broader market benchmark, the Sensex, has also been under pressure, falling by 0.76% today to 81,559.01 points after a negative opening. The Sensex is experiencing its third consecutive week of decline, losing 4.9% over this period. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, suggesting some underlying resilience in the broader market despite recent weakness.
Over the past year, Gujarat Toolroom Ltd’s stock has delivered a negative return of 71.63%, a stark contrast to the Sensex’s positive 7.53% gain. The stock’s 52-week high was Rs.2.46, highlighting the extent of the decline from its peak.
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Financial Results and Underlying Factors
The company’s recent financial disclosures have revealed significant declines. Net sales for the quarter stood at Rs.8.08 crores, plunging by 97.01% compared to previous periods. This sharp contraction in revenue has been accompanied by a net loss after tax (PAT) of Rs.-0.35 crores, representing a 101.3% fall. These figures reflect a continuation of negative quarterly results, with the company reporting losses for the last three consecutive quarters. The March 2025 quarter marked the ninth consecutive quarter of negative results, indicating a prolonged period of financial strain.
Operating cash flow for the year has also deteriorated substantially, reaching a low of Rs.-262.37 crores. This negative cash flow position highlights challenges in generating sufficient operational liquidity.
Long-term performance metrics further illustrate the company’s struggles. Over the past year, the stock has underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months. The cumulative return over the last year is a negative 71.18%, while profits have declined by 29% during the same period.
Valuation and Efficiency Metrics
Despite the recent downturn, Gujarat Toolroom Ltd exhibits some positive financial characteristics. The company maintains a high return on equity (ROE) of 35.06%, signalling efficient use of shareholder capital. Additionally, the average debt-to-equity ratio remains low at 0.09 times, indicating limited leverage and a conservative capital structure.
Net sales have demonstrated impressive long-term growth, with an annualised increase of 1,821.30%, while operating profit has grown at a rate of 476.47%. These figures suggest that the company has experienced periods of robust expansion historically.
The return on capital employed (ROCE) stands at 2, and the enterprise value to capital employed ratio is 0.4, pointing to an attractive valuation relative to capital invested. The stock currently trades at a discount compared to its peers’ average historical valuations, reflecting market caution amid recent results.
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Market Ratings and Shareholding
Gujarat Toolroom Ltd’s current Mojo Score stands at 29.0, with a Mojo Grade of Strong Sell, upgraded from a previous Sell rating on 8 December 2025. This rating reflects the company’s deteriorated financial health and market performance. The market capitalisation grade is rated at 4, indicating a relatively small market cap within its sector.
Majority shareholding is held by non-institutional investors, which may influence trading liquidity and volatility. The stock’s sector classification remains Plastic Products - Industrial, a segment that has faced headwinds in recent months.
Summary of Key Metrics
To encapsulate, Gujarat Toolroom Ltd’s stock has reached a new 52-week low of Rs.0.63, reflecting sustained declines amid weak quarterly results and negative cash flows. The stock’s performance trails the broader market significantly, with a one-year return of -71.63% versus the Sensex’s 7.53% gain. Despite some positive efficiency ratios and long-term growth figures, recent financial outcomes have weighed heavily on investor sentiment and valuation.
The company’s trading below all major moving averages and the sector’s ongoing pressures have contributed to the stock’s subdued performance. While the valuation metrics suggest the stock is trading at a discount relative to peers, the recent financial results and rating downgrade to Strong Sell underscore the challenges faced by Gujarat Toolroom Ltd.
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