Gandhar Oil Refinery (India) Limited

Energy — Oil & Gas Refining & Marketing · NSE

₹297.00−₹2.10 (−0.70%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

The 60-second version of Gandhar Oil Refinery (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Gandhar Oil Refinery (India) Limited manufactures and sells white oils in India.

IndustryOil & Gas Refining & Marketing

SectorEnergy

Employees365

Annual revenue₹4,231 Cr

How does it make money?

Turns over ₹4,231 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 365 employees supports ₹11.59 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹11.59 Cr

Who are its competitors?

The closest listed comparisons in its industry are RELIANCE INDUSTRIES LTD, OIL AND NATURAL GAS CORP., BHARAT PETROLEUM CORP LT, INDIAN OIL CORP LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 13.4% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +4% while net margin moved -32% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+4%

Margin effect-32%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 1.3% — barely ahead of inflation
✗ Profit has declined at 10.8% a year

Quality vs. Valuation

Company Quality

50/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

63/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

9.6x

3Y Median

13.7x

37 monthly readings · mean 14.3x · range 8.4x–27.3x

Sector Median

6.9x

median of 4 sector peers

🟢Current valuation is approximately 30% below its 3y median of 13.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 40% above the peer median of 6.9x.

vs. its own history

Cheap

13.7x median over 37 months · -30%

vs. sector peers

Expensive

6.9x median of 4 peers · +40%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

13.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 49% over 3 years.
Very low debt
Debt/Equity of 0.23x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 25.7% to 10.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 36.0% to 13.4% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 5 watch

🟡Debt is increasingFinancial
Total debt is up 43% over 3 years.
🟡Profit is decliningFinancial
Net profit is down 29% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.1 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 28% against revenue up 4% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 43% against revenue up 4% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 30% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹48 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 7.9% to 5.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 28% against revenue up 4%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 40% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 1.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 25.7% to 10.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 4%✓ 5.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 1.3% CAGR
Latest reported year was 91.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹48 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 13.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹2,907 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.6x

Cheap

Cheap against the generic band

P/B Ratio

2.15x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹30.8

Profitable

Profitable on a per-share basis

ROE

10.0%

Moderate

Moderate capital efficiency

ROCE

13.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.23x

Low

Conservative leverage

Revenue Growth (YoY)

91.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

633.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.93%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹48 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

15.8%

Good

Healthy core-business profitability

Net Margin

5.9%

Average

Average bottom-line conversion

Current Ratio

2.61

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.50

Defensive

Steadier than the market

52W Range Position

92%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

283.6 / 267.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

69.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,076 Cr	₹4,111 Cr	₹3,893 Cr	₹4,231 Cr	+1.3%
EBITDA	₹323 Cr	₹276 Cr	₹189 Cr	₹246 Cr	-8.7%
EBITDA Margin	7.9%	6.7%	4.9%	5.8%	—
PAT (Net Profit)	₹191 Cr	₹141 Cr	₹80 Cr	₹135 Cr	-10.8%
EPS	₹23.86	₹16.27	₹8.18	₹13.83	-16.6%
ROE	25.7%	12.0%	6.5%	10.0%	—
ROCE	36.0%	19.3%	10.6%	13.4%	—
Total Debt	₹220 Cr	₹271 Cr	₹305 Cr	₹315 Cr	+12.7%
Free Cash Flow	₹32 Cr	-₹125 Cr	-₹43 Cr	₹48 Cr	+14.2%

🟡 Revenue has been broadly flat over 3 years (1.3% a year).

🔴 EBITDA has shrunk at 8.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 7.9% to 5.8% over 3 years (-2.1 pts).

🔴 PAT (Net Profit) has shrunk at 10.8% a year over 3 years.

🔴 EPS has shrunk at 16.6% a year over 3 years.

🔴 ROE has fallen from 25.7% to 10.0% over 3 years (-15.7 pts).

🔴 ROCE has fallen from 36.0% to 13.4% over 3 years (-22.6 pts).

🔴 Total Debt has grown at 12.7% a year over 3 years.

🟢 Free Cash Flow has grown at 14.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,225 Cr

Total Liabilities

₹826 Cr

Cash & Equivalents

₹28 Cr

Operating Cash Flow

₹128 Cr

Capex

-₹80 Cr

Shareholding (proxy)

Institutional Holding

0.7%

Insider Holding

66.6%

Corporate Actions

Dividend Rate

₹2.75

Ex-Dividend Date

31 Jul 2026

Peer Comparison

Company	P/E	ROE
RELIANCE INDUSTRIES LTD	21.9x	8.3%
OIL AND NATURAL GAS CORP.	6.4x	11.7%
BHARAT PETROLEUM CORP LT	7.3x	17.1%
INDIAN OIL CORP LTD	5.3x	15.3%

Recent News

6 general

GANDHAR OIL REFINE IND L Share Price

Upstox, 16 Oct

Gandhar Oil Refinery 52 Week High Streak: Second Session

Univest, 12 Oct

If EPS Growth Is Important To You, Gandhar Oil Refinery (India) (NSE:GANDHAR) Presents An Opportunity

Simply Wall Street, 24 Jul

List of Oil & Gas Stocks in India (2026)

INDmoney, 16 Oct

Broad-Based Technical Strength Lifts Gandhar Oil Refinery (India) Ltd to 52-Week High of Rs 304

MarketsMojo, 15 Oct

Societe Generale pares 0.53% stake in Gandhar Oil Refinery

Moneycontrol.com, 29 Jul

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingProfitability · Risk

WeakBusiness Quality · Growth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑