Gujarat Industries Power Co Ltd (GIPCL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

PTC India

K.P. Energy

Sustainable Ener

Reliance Infra.

Guj Inds. Power

Ujaas Energy

Orient Green

RattanIndia Pow.

Insolation Ener

Solarworld Ene.

Vilas Transcore

Why is Gujarat Industries Power Co Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -3.46% of over the last 5 years

The company has declared negative results for the last 2 consecutive quarters

PAT(Q) At Rs -3.20 cr has Fallen at -106.8% (vs previous 4Q average)
INTEREST(Q) At Rs 36.14 cr has Grown at 98.79%
OPERATING PROFIT TO INTEREST (Q) Lowest at 3.38 times

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -1.25% over the previous quarter and collectively hold 15.03% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -3.31% in the last 1 year, its fall in the stock was much higher with a return of -27.64%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Guj Inds. Power for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guj Inds. Power

-27.64%

-0.81

34.31%

Sensex

-5.47%

-0.43

12.65%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.81%

EBIT Growth (5y)

-3.46%

EBIT to Interest (avg)

6.28

Debt to EBITDA (avg)

1.13

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

0.41

Tax Ratio

37.46%

Dividend Payout Ratio

30.03%

Pledged Shares

Institutional Holding

15.03%

ROCE (avg)

9.82%

ROE (avg)

5.98%

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

0.56

EV to EBIT

14.27

EV to EBITDA

7.18

EV to Capital Employed

0.68

EV to Sales

2.37

PEG Ratio

Dividend Yield

3.15%

ROCE (Latest)

4.96%

ROE (Latest)

4.12%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

1What is working for the Company

PBDIT(Q)

Highest at Rs 122.33 cr.

-28What is not working for the Company

PAT(Q)

At Rs -3.20 cr has Fallen at -106.8% (vs previous 4Q average

INTEREST(Q)

At Rs 36.14 cr has Grown at 98.79%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 3.38 times

PBT LESS OI(Q)

Lowest at Rs 8.62 cr.

NON-OPERATING INCOME(Q)

is 59.36 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs -0.21

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Here's what is working for Guj Inds. Power

Operating Profit (PBDIT) - Quarterly

Highest at Rs 122.33 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Here's what is not working for Guj Inds. Power

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 8.62 cr has Fallen at -82.2% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 48.52 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -3.20 cr has Fallen at -106.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 46.93 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Interest - Quarterly

At Rs 36.14 cr has Grown at 98.79%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 3.38 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest - Quarterly

Highest at Rs 36.14 cr

in the last five quarters and Increased by 98.79 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 8.62 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 59.36 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Earnings per Share (EPS) - Quarterly

Lowest at Rs -0.21

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)