Stock Performance and Market Context
The stock’s new low of Rs.0.71 represents a steep decline from its 52-week high of Rs.2.61, reflecting a 70.93% drop over the past year. This contrasts sharply with the Sensex, which has delivered an 8.44% gain over the same period. Gujarat Toolroom Ltd’s share price is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
On the day the new low was recorded, the stock outperformed its sector by 2.12%, despite the broader market’s modest decline. The Sensex opened lower at 84,022.09, down 158.87 points (-0.19%), and was trading at 84,081.77 (-0.12%) during the session. The index remains 2.47% below its 52-week high of 86,159.02, with the 50-day moving average positioned above the 200-day moving average, indicating a mixed technical environment for the broader market.
Financial Results and Profitability Metrics
Gujarat Toolroom Ltd’s recent financial disclosures have underscored the pressures on the company’s earnings and cash flows. The company reported a drastic 97.01% decline in net sales in the quarter ending September 2025, contributing to a series of negative quarterly results. This marks the third consecutive quarter of losses, following a negative result in March 2025 that ended a run of nine consecutive quarters with negative earnings.
Profit after tax (PAT) for the latest quarter stood at a loss of Rs.0.35 crore, a decline of 101.3% compared to the previous period. Operating cash flow for the year was deeply negative at Rs.-262.37 crore, reflecting significant cash outflows from core business activities. Return on capital employed (ROCE) for the half-year was reported at a low 2.05%, indicating limited efficiency in generating returns from the company’s capital base.
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Long-Term and Sector Comparison
Over the last three years, Gujarat Toolroom Ltd has underperformed the BSE500 index across multiple time frames, including the one-year and three-month periods. The stock’s cumulative return of -70.53% over the past year is notably below the sector average, reflecting persistent challenges in the plastic products industrial segment.
Despite the recent setbacks, the company’s market capitalisation grade remains at 4, indicating a relatively small market cap within its peer group. The Mojo Score has deteriorated to 29.0, with the Mojo Grade downgraded from Sell to Strong Sell as of 8 Dec 2025, reflecting the deteriorating fundamentals and market sentiment.
Balance Sheet and Efficiency Indicators
On a positive note, Gujarat Toolroom Ltd maintains a low average debt-to-equity ratio of 0.09 times, suggesting limited leverage and a conservative capital structure. The company also exhibits strong management efficiency, with a return on equity (ROE) of 35.06%, indicating effective utilisation of shareholder funds despite the broader financial difficulties.
Long-term growth metrics show a remarkable annualised increase in net sales of 1,821.30% and operating profit growth of 476.47%, highlighting periods of significant expansion in the company’s history. However, the current ROCE of 2.05% and an enterprise value to capital employed ratio of 0.4 point to a valuation that is attractive relative to peers but reflective of the company’s recent performance challenges.
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Shareholding and Market Position
The majority of Gujarat Toolroom Ltd’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics. The company operates within the plastic products industrial sector, a segment that has experienced varied performance across peers, with Gujarat Toolroom’s valuation currently trading at a discount compared to historical averages within the industry.
While the stock’s recent returns have been negative, with profits declining by 29% over the past year, the company’s underlying fundamentals such as low leverage and high ROE provide a nuanced picture of its financial health.
Summary of Key Metrics
To summarise, Gujarat Toolroom Ltd’s stock has reached a 52-week low of Rs.0.71 amid a backdrop of declining sales, consecutive quarterly losses, and subdued cash flow generation. The company’s Mojo Grade of Strong Sell and a low Mojo Score of 29.0 reflect the current market assessment of its financial position. Despite these challenges, the firm maintains a strong ROE and low debt levels, with valuation metrics suggesting the stock is trading at a discount relative to peers.
Market participants will note the divergence between the company’s long-term growth history and its recent financial performance, which has contributed to the stock’s significant price correction over the past year.
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