Gandhar Oil Ref. (GANDHAR)

FairStock Score: 53/100 — MIXED

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let me look at Gandhar Oil Ref. At ₹139.75, I am paying ₹1,375 crore for a business that earns roughly ₹106 crore on a trailing basis — P/E of 12.93. The balance sheet is respectable: debt/equity of 0.25 and book value of ₹115.60, so I am buying at 1.21 times book. That gives some comfort, but I don't buy a business merely for book value. ROE is 9.14% and ROCE is 10.59%. Those are mediocre returns; lubricants is competitive and the latest quarter's net margin is only about 2.9% on sales of ₹1,167 crore. This tells me there is little pricing power. The 67.56% profit growth looks wonderful, but on low returns, and with a 52-week range of ₹115 to ₹303.20, the market has already experienced a violent mood swing. Sales growth of 16% is fine, and the Piotroski F-score of 7 indicates improving fundamentals. Promoter holding of 66.18% is good aligned ownership. The PEG ratio of 0.31 is attractive only if the growth is durable. But I must be careful: rapid profit growth in cyclical businesses often reverses when commodity prices turn. I see a decent, moderately leveraged company with improving numbers, but not a great franchise with a durable moat. At 12.93 times earnings, perhaps there is value, but I would want a larger margin of safety given commodity exposure and modest returns on capital. I will watch whether margins and ROCE can hold or improve before getting excited.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer