Mehabe score: 4 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 6.
Description
Gujarat Industries Power Company Limited is engaged in the generation of electricity. The Company’s gas-based power plants are Vadodara Stations, including Station-I with a capacity of 145 Mega Watts (MW) and Station-II with a capacity of 165 MW.Site:GIPCLMain Symbol:GIPCL
Stock trades at 95.2, above its 50dma 89.21. It also trades above its 200dma 81.01. The stock remains bullish on techicals
The 52 week high is at 105.70 and the 52week low is at 65.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.49 times its book value
– has been maintaining a healthy dividend payout of 21.61%
Weakness
– The company has delivered a poor sales growth of -0.25% over past five years.
– has a low return on equity of 9.20% for last 3 years.
-Debtor days have increased from 62.45 to 80.76 days.
Competition
– The industry trades at a mean P/E of 27.3x. Adani Green trades at the industry’s max P/E of 445.83x. GIPCL trades at a P/E of 7.86x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 9.0. GIPCL has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 5.3%. The max 1- month return was given by JSW Energy: a return of 48.92 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 296.0 cr compared to Rs 336.0 cr for period ended Jun 2020, a fall of 11.9%
Operating Profits reported at Rs 84.0 cr for period ended Jun 2021 vis-vis 122.0 for period ended Jun 2020 .
Operating Margins contracted -793.1 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 2.34 compared to Rs 2.92 for previous quarter ended Mar 2021 and Rs 3.93 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1295.0 cr for period ended TTM vis-vis sales of Rs 1335.0 cr for the period ended Mar 2021, a fall of 3.1%. The 3 year sales cagr stood at -2.7%.
Operating margins shrank to 31.0% for period ended TTM vis-vis 32.0% for period ended Mar 2021, contraction of 100.0 bps.
Net Profit reported at Rs 158.0 cr for period ended TTM vis-vis sales of Rs 180.0 cr for the period ended Mar 2021, falling 13.9%.
Company reported a poor Net Profit CAGR of -3.5% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 193.0 cr for period ended Mar 2021 vis-vis Rs 0.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 35% on a 1 Year basis vis-vis a return of 0% over the last 3 Years. – The compounded sales growth on a TTM bassis is -3% vis-vis a compounded sales growth of -0% over the last 3 Years. – The compounded profit growth on a TTM basis is -26% vis-vis a compounded profit growth of -9% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 1.59% vis-vis 1.5% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.06% vis-vis 23.46% for Mar 2021
Conclusion
– Stock is trading at 0.49 times its book value
– has been maintaining a healthy dividend payout of 21.61% – The company has delivered a poor sales growth of -0.25% over past five years.
– has a low return on equity of 9.20% for last 3 years.
-Debtor days have increased from 62.45 to 80.76 days.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 89.21 and is trading at 95.2, thus bullish price action wise.
