Gujarat Industries Power Company Limited

Utilities — Utilities - Regulated Electric · NSE

₹171.00+₹1.75 (+1.03%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:26 pm

Understanding the Business

Company site ↗

The 60-second version of Gujarat Industries Power Company Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Gujarat Industries Power Company Limited engages in the generation, transmission, and distribution of electricity to power purchasing companies in India.

IndustryUtilities - Regulated Electric

SectorUtilities

Employees600

Annual revenue₹1,483 Cr

How does it make money?

Turns over ₹1,483 Cr a year. Of every ₹100 of sales, about ₹27 reaches shareholders as profit, with ₹42 left at the operating level before interest, tax and depreciation. Each of its 600 employees supports ₹2.47 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.47 Cr

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, POWER GRID CORP. LTD., TATA POWER CO LTD, ADANI POWER LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 4.4% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +10% while net margin moved +94% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+10%

Margin effect+94%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

• Debt/Equity of 0.94x is manageable
✗ Current ratio of 0.63 — short-term liabilities exceed short-term assets
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
• Interest cover of 3.2x is adequate
✗ Debt has grown 93.9% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

61/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

83/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

5.3x

3Y Median

13.1x

40 monthly readings · mean 13.1x · range 6.5x–19.4x

Sector Median

20.6x

median of 4 sector peers

🟢Current valuation is approximately 60% below its 3y median of 13.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 74% below the peer median of 20.6x.

vs. its own history

Cheap

13.1x median over 40 months · -60%

vs. sector peers

Cheap

20.6x median of 4 peers · -74%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.7x

PEG

0.18

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 32.4% to 41.5% over 3 years.
Return on equity is rising
ROE has improved from 6.0% to 10.5%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 7.0% to 4.4% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 1 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 629% over 3 years, from ₹493 Cr to ₹3,594 Cr.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 9.6x to 3.2x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1,670 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.63 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 32.4% to 41.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 60% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 74% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 3.2% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 40%✓ 41.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹1,670 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.2x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 4% a year✗ 3.2% CAGR
Latest reported year was 34.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹2,654 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

5.3x

Cheap

Cheap against the generic band

P/B Ratio

0.69x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹32.39

Profitable

Profitable on a per-share basis

ROE

10.5%

Moderate

Moderate capital efficiency

ROCE

4.4%

Weak

Low return on total capital employed

Debt/Equity

0.94x

Moderate

Moderate leverage

Revenue Growth (YoY)

34.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

174.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.40%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹1,670 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

11.2x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

30.1%

Good

Healthy core-business profitability

Net Margin

31.1%

Good

Strong bottom-line conversion

Current Ratio

0.63

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.46

Defensive

Steadier than the market

52W Range Position

56%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

177.3 / 182.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

27.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,349 Cr	₹1,341 Cr	₹1,248 Cr	₹1,483 Cr	+3.2%
EBITDA	₹437 Cr	₹442 Cr	₹469 Cr	₹616 Cr	+12.1%
EBITDA Margin	32.4%	33.0%	37.6%	41.5%	—
PAT (Net Profit)	₹189 Cr	₹199 Cr	₹211 Cr	₹402 Cr	+28.7%
EPS	₹12.48	₹13.12	₹13.97	₹25.93	+27.6%
ROE	6.0%	6.0%	6.0%	10.5%	—
ROCE	7.0%	6.3%	4.8%	4.4%	—
Total Debt	₹493 Cr	₹614 Cr	₹2,028 Cr	₹3,594 Cr	+93.9%
Free Cash Flow	₹283 Cr	₹98 Cr	-₹1,580 Cr	-₹1,670 Cr	—

🟢 Revenue has grown at 3.2% a year over 3 years.

🟢 EBITDA has grown at 12.1% a year over 3 years.

🟢 EBITDA Margin has risen from 32.4% to 41.5% over 3 years (+9.1 pts).

🟢 PAT (Net Profit) has grown at 28.7% a year over 3 years.

🟢 EPS has grown at 27.6% a year over 3 years.

🟢 ROE has risen from 6.0% to 10.5% over 3 years (+4.5 pts).

🔴 ROCE has fallen from 7.0% to 4.4% over 3 years (-2.6 pts).

🔴 Total Debt has grown at 93.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹283 Cr to -₹1,670 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9,426 Cr

Total Liabilities

₹5,586 Cr

Cash & Equivalents

₹261 Cr

Operating Cash Flow

₹649 Cr

Capex

-₹2,319 Cr

Shareholding (proxy)

Institutional Holding

5.0%

Insider Holding

65.4%

Corporate Actions

Dividend Rate

₹4.1

Ex-Dividend Date

11 Sept 2026

Peer Comparison

Company	P/E	ROE
NTPC LTD	11.0x	13.7%
POWER GRID CORP. LTD.	14.6x	15.8%
TATA POWER CO LTD	29.3x	9.8%
ADANI POWER LTD	26.5x	21.9%

Recent News

2 positive4 general

Is Gujarat Industries Power Company the Best Stock in Its Sector? A Look at the Numbers

Univest, 25 Sept

Gujarat Industries Power FY26 Profit Rises on Tax Transition; EBITDA Margin Expands

scanx.trade, 04 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Gujarat Industries Power Company Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Stock to buy today: Gujarat Industries Power Company (₹206) – BUY

BusinessLine, 03 Sept

Gujarat Industries Power Co standalone net profit rises 174.75% in the June 2026 quarter

Business Standard, 12 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Gujarat Industries Power Co seeks bids for 120MWh vanadium flow battery pilot project

Energy-Storage.News, 26 May

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation

WeakFinancial Health · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Revenue growth stays above 4% a year · see Key things to watch ↑