Recent Price Movement and Market Context
On 2 Feb 2026, Gulshan Polyols Ltd’s share price fell sharply, hitting an intraday low of Rs.121.75, representing a 4.1% drop on the day. This decline contributed to a two-day consecutive fall, with the stock losing 4.31% over this period. The day’s performance also saw the stock underperform its sector by 2.55%, indicating relative weakness within the Other Agricultural Products industry.
The broader market environment has been subdued, with the Sensex opening 167.26 points lower and trading at 80,509.68, down 0.26%. Notably, other indices such as the S&P Bse FMCG and NIFTY FMCG also hit new 52-week lows on the same day, signalling sector-wide pressures. The Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, suggesting mixed technical signals.
Gulshan Polyols is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the prevailing downward momentum in the stock price.
Performance Over the Past Year
The stock’s 52-week high was Rs.224, highlighting the extent of the recent decline to Rs.121.75, a drop of approximately 45.7% from its peak. Over the last year, Gulshan Polyols has generated a negative return of 39.15%, significantly underperforming the Sensex, which posted a positive return of 3.85% during the same period. This consistent underperformance extends beyond the last year, with the stock lagging behind the BSE500 index in each of the past three annual periods.
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Financial Metrics and Profitability
Despite the recent share price weakness, Gulshan Polyols has demonstrated healthy growth in its financial performance. Net sales have grown at an annual rate of 35.29%, while operating profit has expanded by 46.00%. The company reported outstanding results in September 2025, with net profit increasing by 19.86% and positive results declared for two consecutive quarters.
For the nine months ended, the company posted a PAT of Rs.35.90 crores, reflecting a growth of 105.26%. Profit before tax excluding other income (PBT less OI) for the quarter stood at Rs.22.27 crores, growing 142.5% compared to the previous four-quarter average. Net sales for the nine-month period reached Rs.1,649.83 crores, up 26.85% year-on-year.
Return on Capital Employed (ROCE) is recorded at 8.5%, and the company’s enterprise value to capital employed ratio is 1.1, indicating a very attractive valuation relative to its capital base. The stock trades at a discount compared to its peers’ average historical valuations. Over the past year, while the stock price declined by 39.15%, profits rose by 92.8%, resulting in a low PEG ratio of 0.2.
Debt and Shareholder Returns
One area of concern is the company’s ability to service its debt. Gulshan Polyols has a high Debt to EBITDA ratio of 4.65 times, suggesting elevated leverage and potential pressure on cash flows. Additionally, the average Return on Equity (ROE) stands at 5.17%, indicating relatively low profitability per unit of shareholders’ funds.
Despite the company’s size, domestic mutual funds hold no stake in Gulshan Polyols. Given that domestic mutual funds typically conduct in-depth research and maintain positions in companies they find favourable, this absence may reflect reservations about the stock’s valuation or business prospects at current levels.
Sector and Benchmark Comparison
Gulshan Polyols operates within the Other Agricultural Products sector, which has faced headwinds alongside the broader market. The stock’s underperformance relative to the Sensex and BSE500 indices over multiple years highlights challenges in maintaining investor confidence. The sector itself has seen some indices, such as S&P Bse FMCG and NIFTY FMCG, also reach 52-week lows, indicating sector-wide pressures that may be influencing sentiment.
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Mojo Score and Rating Update
Gulshan Polyols currently holds a Mojo Score of 57.0, with a Mojo Grade of Hold as of 3 Nov 2025. This represents an upgrade from a previous Sell rating, reflecting some improvement in the company’s fundamentals and outlook. The Market Capitalisation Grade is 4, indicating a mid-sized company within its sector.
The Hold rating aligns with the company’s mixed profile: solid growth in sales and profits contrasted by leverage concerns and share price underperformance. The stock’s valuation metrics suggest it is trading at a discount relative to peers, but the subdued price action and absence of institutional backing highlight ongoing caution.
Summary of Key Price and Performance Data
To summarise, Gulshan Polyols Ltd’s stock has declined to Rs.121.75, its lowest level in 52 weeks, after a two-day losing streak and underperformance relative to its sector and benchmark indices. The stock trades well below all major moving averages, signalling a bearish technical trend. Over the past year, the stock has lost 39.15% in value, while the Sensex gained 3.85%.
Financially, the company has delivered strong growth in net sales and profits, with a notable increase in PAT and PBT excluding other income. However, elevated debt levels and modest returns on equity temper the overall picture. The Mojo Grade of Hold reflects this balance of strengths and weaknesses.
Sector-wide pressures and broader market weakness have contributed to the stock’s recent decline, with other indices in related sectors also hitting 52-week lows. The absence of domestic mutual fund holdings further underscores the cautious stance among institutional investors.
Technical and Valuation Considerations
From a technical perspective, the stock’s position below all key moving averages suggests continued downward momentum in the near term. The gap between the current price and the 52-week high of Rs.224 highlights the scale of the recent correction. Valuation metrics, including a low PEG ratio and attractive enterprise value to capital employed, indicate that the stock is trading at a discount relative to historical and peer benchmarks.
Nevertheless, the company’s leverage and modest return on equity remain factors that may influence investor sentiment and valuation multiples.
Conclusion
Gulshan Polyols Ltd’s fall to a 52-week low of Rs.121.75 reflects a combination of market-wide pressures, sector challenges, and company-specific financial characteristics. While the company has demonstrated robust growth in sales and profits, concerns around debt levels and consistent underperformance relative to benchmarks have weighed on the stock price. The current Mojo Grade of Hold encapsulates this nuanced outlook, balancing positive financial trends against valuation and leverage considerations.
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