Recent Price Movement and Market Context
On 25 Nov 2025, Gulshan Polyols' stock price reached Rs.135.1, the lowest level recorded in the past year. The stock has experienced a consecutive five-day decline, resulting in a cumulative return of -7.38% over this period. This downward trend contrasts with the broader market, where the Sensex opened 108.22 points higher and was trading at 85,049.76, representing a 0.18% gain. The Sensex remains close to its 52-week high of 85,801.70, just 0.88% away, supported by bullish moving averages with the 50-day moving average positioned above the 200-day moving average.
Within the market, mid-cap stocks have shown relative strength, with the BSE Mid Cap index gaining 0.26% on the day. However, Gulshan Polyols has not mirrored this positive momentum, trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a sustained weakness in its price action.
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Performance Overview and Financial Metrics
Over the past year, Gulshan Polyols has recorded a total return of -25.06%, underperforming the Sensex, which has shown a positive return of 6.17% during the same period. The stock’s 52-week high was Rs.224, highlighting the extent of the decline to the current low.
Despite the stock’s price challenges, the company’s financial results indicate areas of growth. Net sales for the latest six months stood at Rs.1,134.95 crore, reflecting a growth rate of 26.81%. Operating profit has shown an annual rate of 46.00%, while net profit has recorded a growth of 19.86%. These figures correspond with the company’s recent positive quarterly results, including the September 2025 quarter.
Return on Capital Employed (ROCE) for the half-year period is reported at 8.68%, with operating profit to interest coverage ratio reaching 5.14 times in the latest quarter. The company’s valuation metrics include an enterprise value to capital employed ratio of 1.2, which is considered attractive relative to peers’ historical averages.
However, certain financial indicators highlight areas of concern. The company’s Debt to EBITDA ratio stands at 4.65 times, suggesting a relatively high leverage level. Additionally, the average Return on Equity (ROE) is 5.17%, indicating modest profitability per unit of shareholders’ funds.
Shareholding and Market Position
Gulshan Polyols is classified within the Other Agricultural Products industry and sector. Despite its size, domestic mutual funds hold no stake in the company, which may reflect a cautious stance given the current price levels and business outlook. The stock has consistently underperformed the BSE500 index over the last three years, with negative returns recorded in each of these annual periods.
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Technical Indicators and Moving Averages
The stock’s position below all major moving averages—5-day, 20-day, 50-day, 100-day, and 200-day—signals a persistent downward trend. This technical setup contrasts with the broader market indices, which are trading above key moving averages, suggesting that Gulshan Polyols is facing sector-specific or company-specific pressures that have not been alleviated by recent market strength.
Summary of Key Financial Ratios
Gulshan Polyols’ financial ratios present a mixed picture. While net sales and operating profits have shown growth, the company’s leverage and return on equity metrics point to challenges in capital efficiency and debt servicing capacity. The operating profit to interest coverage ratio of 5.14 times indicates the company’s ability to meet interest obligations from operating earnings, yet the elevated Debt to EBITDA ratio remains a factor to monitor.
Over the past year, the company’s profits have risen by 92.8%, a notable increase that contrasts with the stock’s negative price performance. The PEG ratio of 0.2 suggests that the stock’s price does not fully reflect the profit growth, though this has not translated into price appreciation.
Market and Sector Comparison
Within the Other Agricultural Products sector, Gulshan Polyols’ stock performance has lagged behind broader market indices and sector peers. The Sensex’s proximity to its 52-week high and the mid-cap segment’s gains highlight a divergence between the company’s stock and general market trends. This divergence may be influenced by the company’s financial structure, valuation, and investor sentiment.
Conclusion
Gulshan Polyols’ decline to a 52-week low of Rs.135.1 marks a significant development in the stock’s price trajectory. While the company’s financial results show growth in sales and profits, the stock’s performance has not aligned with these fundamentals. Elevated leverage ratios and modest returns on equity contribute to the current market assessment. The stock’s position below all major moving averages further underscores the challenges faced in regaining upward momentum.
Investors and market participants will continue to observe how these factors evolve in the context of broader market conditions and sector developments.
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