Recent Price Movement and Market Context
On 25 Nov 2025, Gulshan Polyols' share price touched Rs.135.1, its lowest level in the past year. This price point comes after the stock experienced a continuous decline over the last five trading sessions, resulting in a cumulative return of -7.38% during this period. The stock’s current price remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a sustained downward trend.
In contrast, the broader market has shown resilience. The Sensex opened 108.22 points higher and is trading at 85,049.76, up 0.18% on the day. The benchmark index is approaching its 52-week high of 85,801.70, currently just 0.88% away. Mid-cap stocks are leading the market rally, with the BSE Mid Cap index gaining 0.26% today. This divergence highlights the relative underperformance of Gulshan Polyols compared to the broader market.
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Performance Overview and Financial Metrics
Over the past year, Gulshan Polyols has recorded a return of -25.06%, contrasting with the Sensex’s positive performance of 6.17% during the same period. The stock’s 52-week high was Rs.224, indicating a substantial gap between the peak and current price levels.
Despite the share price decline, the company’s financial results reveal areas of growth. Net sales for the latest six months stand 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 increased by 19.86%. The company declared positive results for two consecutive quarters, with the most recent quarter reporting an operating profit to interest ratio of 5.14 times and a highest half-year return on capital employed (ROCE) of 8.68%.
Valuation metrics indicate a very attractive enterprise value to capital employed ratio of 1.2, suggesting the stock is trading at a discount relative to its peers’ historical valuations. The company’s PEG ratio stands at 0.2, reflecting the relationship between its price-to-earnings ratio and earnings growth rate.
Debt and Profitability Considerations
However, Gulshan Polyols faces challenges in debt servicing, with a Debt to EBITDA ratio of 4.65 times. This level points to a relatively high leverage position, which may constrain financial flexibility. Additionally, the company’s average return on equity (ROE) is 5.17%, indicating modest profitability relative to shareholders’ funds.
Domestic mutual funds currently hold no stake in the company, which may reflect a cautious stance given the stock’s recent performance and valuation metrics. The stock has consistently underperformed the BSE500 index over the last three years, reinforcing the trend of subdued returns relative to broader market benchmarks.
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Sector and Industry Positioning
Gulshan Polyols operates within the Other Agricultural Products industry and sector, a segment that has seen mixed performance amid broader market fluctuations. While the company’s sales and profit growth rates suggest healthy long-term expansion, the stock’s price action indicates that market participants are currently discounting these fundamentals.
The stock’s trading below all major moving averages signals a cautious market sentiment. This technical positioning often reflects investor preference for stocks with stronger momentum or more favourable valuation metrics within the sector.
Summary of Key Financial Indicators
To summarise, Gulshan Polyols’ key financial indicators include:
- Net sales growth of 26.81% over the latest six months
- Operating profit growth at an annual rate of 46.00%
- Net profit growth of 19.86% in recent quarters
- ROCE at 8.68% for the half-year period
- Debt to EBITDA ratio of 4.65 times
- Average ROE of 5.17%
- Enterprise value to capital employed ratio of 1.2
These figures illustrate a company with solid growth in sales and profits but facing challenges related to leverage and relative profitability.
Market Sentiment and Price Action
The stock’s recent five-day decline and new 52-week low price of Rs.135.1 highlight the prevailing market sentiment. While the broader indices and mid-cap segments have shown strength, Gulshan Polyols has not participated in this upward momentum. This divergence may be attributed to the company’s financial structure and historical underperformance relative to benchmarks.
Conclusion
Gulshan Polyols’ fall to its 52-week low reflects a complex interplay of factors including valuation, leverage, and market positioning. The stock’s current price level is significantly below its 52-week high and all major moving averages, underscoring the cautious stance of market participants. Although the company has demonstrated growth in sales and profits, challenges in debt servicing and modest returns on equity continue to influence its market valuation.
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