Recent Price Movement and Market Context
On 25 Nov 2025, Gulshan Polyols traded at Rs.135.1, its lowest level in the past year. This price point contrasts sharply with its 52-week high of Rs.224, indicating a substantial contraction in market valuation. The stock's performance today was in line with its sector, Other Agricultural Products, which has experienced mixed trends recently.
The broader market environment presents a contrasting picture. The Sensex opened 108.22 points higher and was trading at 85,049.76, up 0.18%, edging closer to its 52-week high of 85,801.70. Mid-cap stocks led the gains with the BSE Mid Cap index rising by 0.26%. Despite this positive market momentum, Gulshan Polyols has not mirrored these gains, continuing its subdued trend.
Technical indicators show the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests sustained selling pressure and a lack of short-term momentum.
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Financial Performance Overview
Over the past year, Gulshan Polyols has recorded a total return of -25.06%, underperforming the Sensex, which posted a 6.17% return in the same period. The stock has also lagged behind the BSE500 index in each of the last three annual periods, indicating consistent underperformance relative to broader market benchmarks.
Despite the stock's price decline, the company’s financial results reveal 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 expanded by 19.86%, with the company declaring positive results for two consecutive quarters, including the quarter ended 25 Sep 2025.
Return on Capital Employed (ROCE) for the half-year period reached 8.68%, with operating profit to interest coverage at 5.14 times, indicating the company’s capacity to cover interest expenses from operating earnings. The valuation metrics show an enterprise value to capital employed ratio of 1.2, suggesting a relatively attractive valuation compared to peers.
However, the company’s ability to service debt remains a concern, with a Debt to EBITDA ratio of 4.65 times. Return on Equity (ROE) averaged 5.17%, signalling modest profitability relative to shareholders’ funds.
Sector and Shareholding Insights
Gulshan Polyols operates within the Other Agricultural Products sector, which has experienced varied performance across constituent stocks. The stock’s subdued trend contrasts with the broader sector’s mixed but generally more stable performance.
Notably, domestic mutual funds hold no stake in Gulshan Polyols, which may reflect a cautious stance given the company’s current valuation and financial metrics. This absence of institutional holding is unusual for a company of its size and may indicate limited confidence in the stock’s near-term prospects within professional investment circles.
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Historical Performance and Valuation Context
Over the last year, while the stock price has declined by over a quarter, the company’s profits have risen by 92.8%, highlighting a divergence between market valuation and earnings growth. The PEG ratio stands at 0.2, indicating that earnings growth has not been fully reflected in the stock price.
The stock’s current trading levels are below all major moving averages, a technical indication that the market has yet to price in the company’s recent financial improvements. This persistent gap between earnings performance and share price may be influenced by concerns over debt levels and return on equity metrics.
Gulshan Polyols’ market capitalisation grade is rated at 4, reflecting its mid-cap status within the Other Agricultural Products sector. Despite this, the stock’s performance has not aligned with mid-cap indices, which have shown gains in recent sessions.
Summary of Key Metrics
To summarise, Gulshan Polyols’ stock price at Rs.135.1 represents a 52-week low, following a five-day decline resulting in a -7.38% return over that period. The company’s financials show growth in net sales and profits, with operating profit margins expanding and interest coverage ratios remaining healthy. However, elevated debt levels and modest return on equity figures present challenges in the valuation and market perception of the stock.
The broader market environment remains positive, with the Sensex approaching its 52-week high and mid-cap stocks leading gains. Gulshan Polyols’ divergence from these trends highlights sector-specific and company-specific factors influencing its share price trajectory.
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