GE Power India Ltd (GVPIL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Quality Power El

Indo Tech.Trans.

Skipper

Transrail Light

GE Power

T R I L

Bajel Projects

Exicom Tele-Sys.

Omnitech Engg.

KP Green Engg.

Vikran Engg.

Why is GE Power India Ltd ?

Weak Long Term Fundamental Strength with a -17.61% CAGR growth in Net Sales over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 0.07 times

With a growth in Net Profit of 43.15%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
OPERATING PROFIT TO INTEREST(Q) Highest at 24.42 times
PBT LESS OI(Q) At Rs 124.01 cr has Grown at 1528.3% (vs previous 4Q average)
NET SALES(Latest six months) At Rs 702.02 cr has Grown at 20.36%

With ROE of 59.8, it has a Expensive valuation with a 8.4 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 197.85%, its profits have risen by 2572.3% ; the PEG ratio of the company is 0

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 1.79% over the previous quarter and collectively hold 2.77% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to GE Power should be less than 10%
Overall Portfolio exposure to Heavy Electrical Equipment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Heavy Electrical Equipment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is GE Power for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

GE Power

198.01%

3.13

63.30%

Sensex

-6.84%

-0.53

12.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-17.61%

EBIT Growth (5y)

19.79%

EBIT to Interest (avg)

-0.37

Debt to EBITDA (avg)

3.65

Net Debt to Equity (avg)

-0.71

Sales to Capital Employed (avg)

3.51

Tax Ratio

1.88%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

2.77%

ROCE (avg)

-13.70%

ROE (avg)

11.96%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

8.44

EV to EBIT

18.22

EV to EBITDA

17.36

EV to Capital Employed

26.55

EV to Sales

3.55

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

145.68%

ROE (Latest)

59.80%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

29What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 24.42 times

PBT LESS OI(Q)

At Rs 124.01 cr has Grown at 1528.3% (vs previous 4Q average

NET SALES(Latest six months)

At Rs 702.02 cr has Grown at 20.36%

PAT(Latest six months)

Higher at Rs 256.84 cr

ROCE(HY)

Highest at 74.63%

DEBT-EQUITY RATIO(HY)

Lowest at 0.03 times

DEBTORS TURNOVER RATIO(HY)

Highest at 1.66 times

-4What is not working for the Company

INTEREST(9M)

At Rs 16.32 cr has Grown at 44.04%

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Here's what is working for GE Power

Operating Profit to Interest - Quarterly

Highest at 24.42 times and Grown

each quarter in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 124.01 cr has Grown at 1528.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -8.68 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 127.04 cr has Grown at 180.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 45.32 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Latest six months

At Rs 702.02 cr has Grown at 20.36%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.03 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Highest at 1.66 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for GE Power

Interest - Nine Monthly

At Rs 16.32 cr has Grown at 44.04%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)