Gandhar Oil Share:
Gandhar Oil Refinery India Limited has emerged as a key player in the specialty oils and lubricants sector. The company has been in the spotlight due to its stock market performance, financials, and growth prospects. Since its IPO in November 2023, the company’s share price has seen significant volatility, drawing the attention of investors and analysts.
About Gandhar Oil Refinery
Established in 1992, Gandhar Oil Refinery specializes in manufacturing specialty oils for consumer and healthcare industries. The company’s portfolio includes:
- White Oils
- Waxes and Petroleum Jellies
- Automotive and Industrial Lubricants
- Transformer Oils
- Rubber Processing Oils
These products cater to industries such as pharmaceuticals, textiles, steel, automobiles, and government sectors like Indian Railways and the Indian Navy.
Manufacturing Facilities and Global Reach
Gandhar Oil operates three manufacturing facilities:
- Taloja, Maharashtra
- Silvassa, Dadra and Nagar Haveli
- Sharjah, UAE
As of June 30, 2023, these plants had a combined annual production capacity of 522,403 kiloliters. The company exports 64% of its total sales to over 3,500 clients worldwide, including Marico, Dabur, Encube, Gulf Oil, and Adani Ports.
Gandhar Oil Share Financial Performance
The financial performance of Gandhar Oil Refinery over the last five quarters has been fluctuating. The table below highlights key metrics:
| Particulars | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 |
|---|---|---|---|---|---|
| Sales (₹ Cr) | 1,005 | 935 | 995 | 939 | 1,103 |
| Expenses (₹ Cr) | 964 | 895 | 935 | 906 | 1,018 |
| Operating Profit (₹ Cr) | 42 | 40 | 60 | 34 | 85 |
| Operating Profit Margin (OPM%) | 4% | 4% | 6% | 4% | 8% |
| Net Profit (₹ Cr) | 20 | 18 | 33 | 12 | 51 |
| Earnings Per Share (EPS) | 2 | 2 | 3 | 1 | 5 |
The declining profits and volatile margins suggest operational inefficiencies and rising costs.
For More Financial Details of Gandhar Oil Share Click Here
Reasons for Share Price Decline
Gandhar Oil’s share price has declined by 60% from its all-time high of ₹344 and currently trading at 133 primarily due to:
- Weaker financial performance
- Declining profit margins despite stable revenues
- Higher operating expenses impacting net profits
- Overall stock market weakness and selling pressure
Investors have been cautious due to these factors, leading to a bearish sentiment around the stock.
Revenue vs. Profit Comparison
The table below highlights the gap between revenue and profitability:
| Quarter | Sales (₹ Cr) | Net Profit (₹ Cr) |
|---|---|---|
| Dec 2024 | 1,005 | 20 |
| Sep 2024 | 935 | 18 |
| Jun 2024 | 995 | 33 |
| Mar 2024 | 939 | 12 |
| Dec 2023 | 1,103 | 51 |
Despite consistent revenue, net profit has been volatile, reflecting inefficiencies in cost management.
Stock Market Trends and Investor Sentiment
The Indian stock market has seen broad-based selling pressure, affecting multiple stocks, including Gandhar Oil. Some factors contributing to this decline include:
- Weak global cues impacting investor confidence
- Profit-booking by institutional investors
- Concerns over slowing economic growth
Gandhar Oil Share Price Target
Based on market analysis, the expected price targets for Gandhar Oil are:
- 2025: ₹167.87 – ₹273.81
- 2026: ₹248.87 – ₹354.81
- 2027: ₹329.87 – ₹435.81
These projections depend on improved earnings and market conditions.
Milestones and Achievements
- 1992: Incorporated as a private limited company
- 2000: Began specialty oil manufacturing at Silvassa plant
- 2015: Recognized as a ‘Three Star Export House’
- 2019: Crossed ₹30,000 million in consolidated turnover
- 2022: Celebrated 30 years since incorporation
Gandhar Oil markets its products under the “Divyol” brand, which is ISO 9001:2008 certified and FDA approved.
Gandhar Oil IPO Overview
Gandhar Oil launched its IPO in November 2023, raising ₹500.69 crore.
Key IPO Details:
- Price Band: ₹160 – ₹169
- Subscription Status: Oversubscribed 64.1 times
- Listing Price: ₹298 on NSE, a 75% premium
However, the stock has since declined significantly from its listing price.
Gandhar oil Share holding Pattern
As of December 2024, Gandhar Oil’s shareholding pattern is as follows:
| Category | % Holding |
|---|---|
| Promoters | 64.63% |
| Domestic Institutional Investors | 1.70% |
| Foreign Institutional Investors | 0.62% |
| Others | 7.02% |
| Public Investors | 26.03% |
| Government | 0.00% |
Promoters hold a strong majority stake, while institutional ownership remains low.
Conclusion and Investment Outlook
Gandhar Oil Refinery presents a mixed investment case. While the company has a strong industry presence and a growing global footprint, declining profits and weak margins are areas of concern.
Key Takeaways for Investors:
- Watch for profit margin improvements
- Monitor market sentiment and stock trends
- Consider long-term growth potential
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Disclaimer
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