Gujarat Industries Power Company Limited Fundamental Analysis (NSE: GIPCL.NS)
Gujarat Industries Power Company Limited Fundamental Analysis (NSE: GIPCL.NS)
Gujarat Industries Power Company Limited (NSE: GIPCL.NS) shows moderate financial fundamentals with a PE ratio of 5.51, profit margin of 31.06%, and ROE of 13.63%. The company generates $16.2B in annual revenue with weak year-over-year growth of -6.85%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -43.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GIPCL.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakGIPCL.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGIPCL.NS trades at attractive valuation levels.
Growth Score
WeakGIPCL.NS faces weak or negative growth trends.
Financial Health Score
ModerateGIPCL.NS shows balanced financial health with some risks.
Profitability Score
WeakGIPCL.NS struggles to sustain strong margins.
Key Financial Metrics
Is GIPCL.NS Expensive or Cheap?
P/E Ratio
GIPCL.NS trades at 5.51 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GIPCL.NS's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Gujarat Industries Power Company Limited at 0.72 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.79 times EBITDA. This is generally considered low.
How Well Does GIPCL.NS Make Money?
Net Profit Margin
For every $100 in sales, Gujarat Industries Power Company Limited keeps $31.06 as profit after all expenses.
Operating Margin
Core operations generate 21.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.63 in profit for every $100 of shareholder equity.
ROA
Gujarat Industries Power Company Limited generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gujarat Industries Power Company Limited produces operating cash flow of $3.09B, showing steady but balanced cash generation.
Free Cash Flow
Gujarat Industries Power Company Limited generates weak or negative free cash flow of $-8.80B, restricting financial flexibility.
FCF Per Share
Each share generates $-56.71 in free cash annually.
FCF Yield
GIPCL.NS converts -31.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How GIPCL.NS Stacks Against Its Sector Peers
| Metric | GIPCL.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.51 | 20.05 | Better (Cheaper) |
| ROE | 13.63% | 1031.00% | Weak |
| Net Margin | 31.06% | -566.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 1.74 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 1.71 | Weak Liquidity |
| ROA | 0.00% | 4551310.00% | Weak |
GIPCL.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Gujarat Industries Power Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-8.61%
Industry Style: Defensive, Dividend, Income
DecliningEPS CAGR
-14.80%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
153.21%
Industry Style: Defensive, Dividend, Income
High Growth