Gujarat Pipavav Port Limited

Industrials — Marine Shipping · NSE

₹166.80−₹1.29 (−0.77%)

DalalBaazaar Score

77 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by high debt relative to equity, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:44 pm

Understanding the Business

Company site ↗

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

What does this company do?

Gujarat Pipavav Port Limited engages in the construction, operation, and maintenance of port at Pipavav in Gujarat, India. The company provides port services, including marine, berth hire, wharfage, yard operation, stevedorage, and other services.

IndustryMarine Shipping

SectorIndustrials

Employees444

Annual revenue₹1,026 Cr

How does it make money?

Turns over ₹1,026 Cr a year. Of every ₹100 of sales, about ₹50 reaches shareholders as profit, with ₹79 left at the operating level before interest, tax and depreciation. Each of its 444 employees supports ₹2.31 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.31 Cr

Who are its competitors?

The closest listed comparisons in its industry are ADANI PORT & SEZ LTD, LARSEN & TOUBRO 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 26.7%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 21.6% against a peer median of 15.2% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE15.2%

What is the outlook?

6 analysts covering the stock expect revenue to grow about 12.3% and earnings to grow about 7.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.3%

Est. earnings growth+7.1%

Analysts6

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +21% while net margin moved +36% 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+21%

Margin effect+36%

DalalBaazaar Score

77/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.49 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

79/ 100

Good

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

Valuation

81/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

14.4x

3Y Median

21.5x

40 monthly readings · mean 22.8x · range 15.6x–35.5x

Sector Median

30.0x

median of 2 sector peers

🟢Current valuation is approximately 33% below its 3y median of 21.5x. 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 52% below the peer median of 30.0x.

vs. its own history

Cheap

21.5x median over 40 months · -33%

vs. sector peers

Cheap

30.0x median of 2 peers · -52%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

10.0x

PEG

0.80

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 68.0% to 78.7% over 3 years.
Debt is being paid down
Total debt is down 54% over 3 years.
Return on equity is rising
ROE has improved from 13.6% to 21.6%.
Return on capital is rising
ROCE has improved from 16.3% to 26.7%.
High return on capital employed
ROCE of 26.7% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 1.54x — earnings must service borrowings before shareholders see anything.
🟡Inventory building faster than salesFinancial
Inventory up 55% against revenue up 21% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.7% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 68.0% to 78.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 54% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 33% 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 52% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 1.54x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 6.6% 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
Small 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 77%✓ 78.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.6% CAGR
Latest reported year was 32.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹220 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 24%✓ 26.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

11 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

8 good · 2 neutral · 1 weak

Market Cap

₹8,067 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.4x

Cheap

Cheap against the generic band

P/B Ratio

3.42x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹11.56

Profitable

Profitable on a per-share basis

ROE

21.6%

Strong

Strong capital efficiency

ROCE

26.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.54x

High

High leverage

Revenue Growth (YoY)

32.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

41.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

6.00%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹220 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

14.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

55.0%

Good

Healthy core-business profitability

Net Margin

45.1%

Good

Strong bottom-line conversion

Current Ratio

2.54

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.49

Defensive

Steadier than the market

52W Range Position

43%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

166.5 / 163.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

53.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹846 Cr	₹921 Cr	₹914 Cr	₹1,026 Cr	+6.6%
EBITDA	₹576 Cr	₹658 Cr	₹676 Cr	₹807 Cr	+11.9%
EBITDA Margin	68.0%	71.5%	73.9%	78.7%	—
PAT (Net Profit)	₹313 Cr	₹342 Cr	₹397 Cr	₹515 Cr	+18.1%
EPS	₹6.48	₹7.07	₹8.21	₹10.66	+18.0%
ROE	13.6%	14.8%	17.0%	21.6%	—
ROCE	16.3%	19.0%	21.6%	26.7%	—
Total Debt	₹79 Cr	₹79 Cr	₹60 Cr	₹37 Cr	-22.6%
Free Cash Flow	₹312 Cr	₹418 Cr	₹354 Cr	₹220 Cr	-11.0%

🟢 Revenue has grown at 6.6% a year over 3 years.

🟢 EBITDA has grown at 11.9% a year over 3 years.

🟢 EBITDA Margin has risen from 68.0% to 78.7% over 3 years (+10.7 pts).

🟢 PAT (Net Profit) has grown at 18.1% a year over 3 years.

🟢 EPS has grown at 18.0% a year over 3 years.

🟢 ROE has risen from 13.6% to 21.6% over 3 years (+8.0 pts).

🟢 ROCE has risen from 16.3% to 26.7% over 3 years (+10.4 pts).

🟢 Total Debt has shrunk at 22.6% a year over 3 years.

🔴 Free Cash Flow has shrunk at 11.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,024 Cr

Total Liabilities

₹635 Cr

Cash & Equivalents

₹9 Cr

Operating Cash Flow

₹510 Cr

Capex

-₹290 Cr

Shareholding (proxy)

Institutional Holding

26.1%

Insider Holding

44.0%

Corporate Actions

Dividend Rate

₹10

Ex-Dividend Date

02 Sept 2026

Analyst Consensus

Recommendations

5 Buy · 1 Hold · 2 Sell

Target Price (Mean)

₹178.5

+7.0% vs CMP

Target Range

₹131 – ₹210

Peer Comparison

Company	P/E	ROE
ADANI PORT & SEZ LTD	29.9x	14.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%

Recent News

4 mixed2 general

Gujarat Pipavav Port (NSEI:GPPL) Stock Forecast & Analyst Predictions

Simply Wall Street, 06 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Gujarat Pipavav Port Share Price Target 2026: Rs 159 to 183

Univest, 05 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Adani Ports or Gujarat Pipavav: Which stock benefits more from Gujarat concession extensions?

The Economic Times, 26 Aug

GPPL Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Earnings call transcript: Gujarat Pipavav Port posts strong Q1 2026 growth

Investing.com, 13 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Gujarat Pipavav Port Shares Slip 1.24% to ₹158.59, Stuck Between Support and Resistance - Break of Structure

https://www.siam.in/, 09 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑