Stock Performance and Market Context
On 2 Feb 2026, Gujarat Industries Power Co Ltd (Stock ID: 224136) recorded an intraday low of Rs.133.5, representing a 2.48% decline on the day and a 1.83% drop at close. This marks the lowest price level for the stock in the past 52 weeks, down sharply from its 52-week high of Rs.224. The stock has been on a downward trajectory for three consecutive sessions, losing 4.82% over this period. It also underperformed the Power sector by 1.13% today.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This contrasts with the broader market, where the Sensex recovered from an early dip to close 0.15% higher at 80,847.33 points. While the Sensex remains below its 50-day moving average, the 50DMA is still above the 200DMA, indicating a mixed but generally stable market environment. Mega-cap stocks led the market gains, whereas Gujarat Industries Power Co Ltd’s shares lagged significantly.
Financial Performance and Growth Trends
Over the last five years, Gujarat Industries Power Co Ltd has experienced subdued growth, with net sales declining at an annualised rate of -0.17% and operating profit contracting by -2.84%. This sluggish performance has weighed on investor confidence and contributed to the stock’s weak showing.
In the most recent quarterly results for September 2025, the company reported a profit after tax (PAT) of Rs.21.30 crore, a steep decline of 57.6% compared to the average of the previous four quarters. Operating profit to interest coverage also deteriorated, reaching a low of 5.93 times, while interest expenses rose to Rs.18.18 crore, the highest recorded in recent quarters. These figures highlight the pressure on profitability and the increased cost burden faced by the company.
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Investor Participation and Market Sentiment
Institutional investors have reduced their holdings in Gujarat Industries Power Co Ltd by 1.25% over the previous quarter, now collectively holding 15.03% of the company’s shares. This decline in institutional participation may reflect concerns about the company’s fundamentals and growth prospects, given that institutional investors typically possess greater analytical resources and market insight.
Comparatively, the stock has underperformed the broader market significantly over the past year. While the BSE500 index generated returns of 4.12%, Gujarat Industries Power Co Ltd’s shares declined by 29.65%. This stark contrast underscores the challenges faced by the company in maintaining investor confidence and market relevance.
Valuation and Financial Health Metrics
Despite the negative price performance, Gujarat Industries Power Co Ltd maintains a relatively strong ability to service its debt, with a low Debt to EBITDA ratio of 0.88 times. This suggests manageable leverage levels and a capacity to meet financial obligations without undue strain.
The company’s return on capital employed (ROCE) stands at 5%, indicating a fair valuation relative to its capital base. Additionally, the enterprise value to capital employed ratio is 0.7, which is modest but indicates the stock is trading at a premium compared to its peers’ historical averages. Over the past year, profits have declined by 12.8%, further reflecting the subdued earnings environment.
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Summary of Key Metrics
To summarise, Gujarat Industries Power Co Ltd’s stock has reached a 52-week low of Rs.133.5 amid a backdrop of declining profitability, reduced institutional interest, and underperformance relative to the broader market and sector peers. The company’s financial ratios indicate a cautious stance from investors, despite a manageable debt profile and fair valuation metrics. The stock’s current Mojo Score is 26.0, with a Mojo Grade of Strong Sell, downgraded from Sell on 18 Aug 2025, reflecting the ongoing concerns about its growth trajectory and earnings quality.
While the broader market and mega-cap stocks have shown resilience, Gujarat Industries Power Co Ltd’s shares continue to face downward pressure, trading below all major moving averages and reflecting a cautious market outlook.
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