Gujarat Energy Ltd (GUJENERGY) 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

Aegis Logistics

Confidence Petro

GAIL (India)

IRM Energy

Gujarat Energy

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Adani Total Gas

Petronet LNG

Guj.St.Petronet

Indraprastha Gas

Positron Energy

Why is Gujarat Energy Ltd ?

High Management Efficiency with a high ROE of 16.24%

Company has a Debt to Equity ratio (avg) of 0.04 times

Poor long term growth as Operating profit has grown by an annual rate -0.73% of over the last 5 years

With a growth in Net Profit of 653.32%, the company declared Very Positive results in Jun 26

NET SALES(Q) Highest at Rs 9,544.98 cr
PBDIT(Q) Highest at Rs 1,380.65 cr.
OPERATING PROFIT TO NET SALES(Q) Highest at 14.46%

With ROCE of 8, it has a Fair valuation with a 1.4 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -23.42%, its profits have risen by 39.2% ; the PEG ratio of the company is 0.7

High Institutional Holdings at 42.32%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -23.42% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Gujarat Energy should be less than 10%
Overall Portfolio exposure to Gas should be less than 30%

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

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

Is Gujarat Energy for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gujarat Energy

-23.4%

-0.75

31.31%

Sensex

-3.56%

-0.25

13.52%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.07%

EBIT Growth (5y)

-0.73%

EBIT to Interest (avg)

33.55

Debt to EBITDA (avg)

0.26

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

2.10

Tax Ratio

30.28%

Dividend Payout Ratio

34.89%

Pledged Shares

Institutional Holding

42.32%

ROCE (avg)

23.51%

ROE (avg)

16.24%

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

1.44

EV to EBIT

13.01

EV to EBITDA

9.88

EV to Capital Employed

1.40

EV to Sales

1.25

PEG Ratio

0.70

Dividend Yield

1.51%

ROCE (Latest)

7.99%

ROE (Latest)

8.38%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Mildly Bearish

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

31What is working for the Company

NET SALES(Q)

Highest at Rs 9,544.98 cr

PBDIT(Q)

Highest at Rs 1,380.65 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 14.46%

PBT LESS OI(Q)

Highest at Rs 1,144.07 cr.

PAT(Q)

Highest at Rs 999.23 cr.

-6What is not working for the Company

ROCE(HY)

Lowest at 9.71%

DEBTORS TURNOVER RATIO(HY)

Lowest at 11.35 times

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Here's what is working for Gujarat Energy

Net Sales - Quarterly

At Rs 9,544.98 cr has Grown at 100.1% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 4,770.51 Cr

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 1,144.07 cr has Grown at 191.2% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 392.85 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 999.23 cr has Grown at 158.5% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 386.49 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 9,544.98 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 1,380.65 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 14.46%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 1,144.07 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 999.23 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Here's what is not working for Gujarat Energy

Debtors Turnover Ratio- Half Yearly

Lowest at 11.35 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 193.04 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income