Gujarat Gas Limited
Gujarat Gas Limited Fundamental Analysis
Gujarat Gas Limited (GUJGASLTD.NS) shows moderate financial fundamentals with a PE ratio of 19.86, profit margin of 7.54%, and ROE of 13.81%. The company generates $154.1B in annual revenue with moderate year-over-year growth of 5.08%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GUJGASLTD.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakGUJGASLTD.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateGUJGASLTD.NS shows balanced valuation metrics.
Growth Score
ModerateGUJGASLTD.NS shows steady but slowing expansion.
Financial Health Score
ExcellentGUJGASLTD.NS maintains a strong and stable balance sheet.
Profitability Score
WeakGUJGASLTD.NS struggles to sustain strong margins.
Key Financial Metrics
Is GUJGASLTD.NS Expensive or Cheap?
P/E Ratio
GUJGASLTD.NS trades at 19.86 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GUJGASLTD.NS's PEG of 4.81 indicates potential overvaluation.
Price to Book
The market values Gujarat Gas Limited at 2.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.49 times EBITDA. This signals the market has high growth expectations.
How Well Does GUJGASLTD.NS Make Money?
Net Profit Margin
For every $100 in sales, Gujarat Gas Limited keeps $7.54 as profit after all expenses.
Operating Margin
Core operations generate 14.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.81 in profit for every $100 of shareholder equity.
ROA
Gujarat Gas Limited generates $8.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gujarat Gas Limited generates limited operating cash flow of $10.21B, signaling weaker underlying cash strength.
Free Cash Flow
Gujarat Gas Limited produces free cash flow of $7.30B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $10.61 in free cash annually.
FCF Yield
GUJGASLTD.NS converts 3.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.81
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How GUJGASLTD.NS Stacks Against Its Sector Peers
| Metric | GUJGASLTD.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.86 | 19.26 | Neutral |
| ROE | 13.81% | 935.00% | Weak |
| Net Margin | 7.54% | 8855.00% | Weak |
| Debt/Equity | 0.02 | 1.50 | Strong (Low Leverage) |
| Current Ratio | 1.05 | 1.50 | Neutral |
| ROA | 8.69% | -6203.00% (disorted) | Weak |
GUJGASLTD.NS outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Gujarat Gas Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
60.09%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
-4.19%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
27.20%
Industry Style: Defensive, Dividend, Income
High Growth