Stock Price Movement and Market Context
On 9 December 2025, Gujarat Toolroom’s stock price touched Rs.0.72, the lowest level recorded in the past year. This new low comes after two consecutive days of declines, during which the stock lost approximately 3.9% in returns. Today’s performance also saw the stock underperform its sector by 2.61%, signalling relative weakness within the Plastic Products - Industrial industry segment.
The stock is currently 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 downward pressure over multiple time horizons.
In comparison, the broader market index, Sensex, opened lower by 359.82 points and was trading at 84,702.31, down 0.47% on the day. Despite this, Sensex remains close to its 52-week high of 86,159.02, just 1.72% away, and is positioned above its 50-day and 200-day moving averages, reflecting a more resilient market backdrop.
Financial Performance Overview
Gujarat Toolroom’s financial results have shown considerable strain over recent periods. The company reported a sharp fall in net sales for the quarter ending September 2025, with revenues at Rs.8.08 crores, reflecting a decline of 97.01% compared to previous periods. This steep reduction in sales has contributed to a net loss after tax (PAT) of Rs.-0.35 crores for the same quarter, representing a fall of 101.3%.
The company has recorded negative results for three consecutive quarters, including the quarter ending March 2025, which marked the ninth consecutive quarter of losses. Operating cash flow for the year has also been notably negative, with a figure of Rs.-262.37 crores, indicating cash outflows from core business activities.
Over the past year, Gujarat Toolroom’s stock has generated a return of -67.45%, significantly underperforming the Sensex, which posted a positive return of 3.92% over the same period. The stock’s 52-week high was Rs.3.19, highlighting the extent of the decline to the current low.
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Long-Term and Sector Comparison
Examining Gujarat Toolroom’s longer-term performance reveals persistent challenges. The stock has underperformed the BSE500 index over the last three years, one year, and three months. This underperformance is consistent with the company’s financial results, which have shown a downward trajectory in recent quarters.
Despite these difficulties, Gujarat Toolroom operates within the Plastic Products - Industrial sector, which has seen varied performance across its constituents. The company’s market capitalisation grade is relatively low, reflecting its micro-cap status and the scale of its current valuation.
Balance Sheet and Efficiency Metrics
On the balance sheet front, Gujarat Toolroom maintains a low average debt-to-equity ratio of 0.09 times, indicating limited leverage. This conservative capital structure may provide some financial flexibility despite the current earnings pressures.
Management efficiency metrics show a return on equity (ROE) of 35.06%, which is relatively high and suggests effective utilisation of shareholder funds in generating profits historically. However, the return on capital employed (ROCE) stands at 2, which is modest and reflects the current earnings environment.
Net sales have exhibited strong long-term growth, with an annual growth rate of 1,821.30%, and operating profit has grown at 476.47% annually over the longer term. These figures highlight the company’s capacity for expansion in previous years, contrasting with the recent downturn.
The enterprise value to capital employed ratio is 0.4, indicating an attractive valuation relative to the company’s capital base when compared to peers’ historical averages. This valuation discount is consistent with the stock’s recent price weakness.
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Shareholding and Market Position
The majority of Gujarat Toolroom’s shares are held by non-institutional investors, which may influence trading patterns and liquidity characteristics. The company’s micro-cap status and subdued market capitalisation grade reflect its relatively small size within the broader Plastic Products - Industrial sector.
While the stock’s recent price action has been weak, the company’s historical growth rates and management efficiency metrics provide context for its operational background. The current valuation levels suggest that the market is pricing in the recent financial results and ongoing challenges.
Summary of Recent Developments
In summary, Gujarat Toolroom’s stock has reached a new 52-week low of Rs.0.72, reflecting continued declines over recent sessions and underperformance relative to its sector and the broader market. The company’s financial results have shown significant reductions in net sales and profitability, with negative earnings reported for multiple consecutive quarters.
Despite these headwinds, the company maintains a low debt profile and exhibits strong management efficiency metrics. Long-term growth rates in sales and operating profit have been robust historically, although recent periods have seen a reversal in these trends. The stock’s valuation remains discounted compared to peers, consistent with its current financial position.
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