Recent Price Movement and Market Context
On 9 December 2025, Gujarat Industries Power Co touched an intraday low of Rs.140.35, representing a 4.2% decline on the day and a 3.62% drop compared to the previous close. This new low price is notably below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.
The stock’s performance contrasts with the broader market, where the Sensex declined by 0.76% to close at 84,458.01 points. Despite this fall, the Sensex remains approximately 2.01% below its 52-week high of 86,159.02 and continues to trade above its 50-day and 200-day moving averages, signalling a generally bullish trend for the benchmark index.
Long-Term Performance and Valuation Metrics
Over the past year, Gujarat Industries Power Co’s stock price has shown a return of -34.34%, significantly lagging behind the Sensex’s positive return of 3.62% during the same period. The stock’s 52-week high was Rs.268.25, highlighting the extent of the decline to the current low.
Financially, the company’s net sales have exhibited a slight negative compound annual growth rate of -0.17% over the last five years, while operating profit has shown a decline at an annual rate of -2.84%. These figures suggest subdued growth trends in core business operations.
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Quarterly Financial Results and Profitability
The company’s latest quarterly results reveal a profit after tax (PAT) of Rs.21.30 crores, which is 57.6% lower than the average PAT of the preceding four quarters. Operating profit to interest coverage ratio for the quarter stands at 5.93 times, the lowest recorded in recent periods, while interest expenses reached Rs.18.18 crores, the highest quarterly figure noted.
These figures indicate a tightening margin between operating profit and interest obligations, which may be a factor in the stock’s recent price behaviour.
Institutional Investor Activity
Institutional investors have reduced their holdings by 0.8% in the previous quarter, now collectively holding 16.28% of the company’s shares. This reduction in institutional participation may reflect a shift in market assessment of the company’s fundamentals relative to other investment opportunities.
Debt and Capital Efficiency
Despite the challenges in profitability and price performance, Gujarat Industries Power Co maintains a relatively low debt burden, with a Debt to EBITDA ratio of 0.88 times. The company’s return on capital employed (ROCE) is recorded at 5%, and the enterprise value to capital employed ratio stands at 0.7 times, suggesting a valuation that is fair when considering capital utilisation.
However, the stock is trading at a premium relative to the average historical valuations of its peers in the power sector, which may be a consideration for market participants analysing relative value.
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Comparative Market Performance
In the context of the broader market, Gujarat Industries Power Co has underperformed not only the Sensex but also the BSE500 index, which posted a marginal negative return of -0.23% over the last year. The stock’s return of -34.34% over the same period highlights a divergence from general market trends.
Profitability has also shown a downward trend, with profits falling by 12.8% over the past year, reinforcing the subdued financial performance alongside the stock price movement.
Summary of Key Price and Financial Indicators
The stock’s new 52-week low of Rs.140.35 is a significant milestone, reflecting a sustained period of price pressure. The nine consecutive days of decline have contributed to a cumulative loss of nearly 15% in returns during this stretch. The stock’s position below all major moving averages further emphasises the current downtrend.
Financial metrics over recent quarters and years indicate challenges in growth and profitability, with net sales and operating profit showing negative trends over five years, and quarterly profits declining sharply in the latest period. Institutional investor participation has also contracted slightly, while debt levels remain manageable.
Overall, Gujarat Industries Power Co’s stock performance and financial indicators present a picture of a company facing headwinds within the power sector, as reflected in its current valuation and market behaviour.
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