Gujarat Industries Power Co Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Gujarat Industries Power Co Ltd trades at ₹161, building a base and 7 weeks into that stage. That is +0.7% against its own 200-day average. It sits at 52% of a 52-week range of ₹126 to ₹194. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (2 weeks and counting).

Today the stock is building a base — week 7 of stage 1, confirmed. At ₹161 it trades +0.7% versus its 200-day average and sits at 52% of its 52-week range (₹126–₹194).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +107% while the NIFTY 500 moved +276% — behind the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (2 weeks and counting; last ahead the week of 2026-07-17) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Gujarat Industries Power Co Ltd trades at 6.2× P/E, near the bottom of its own range — cheaper only 32% of the time. Its long-run median P/E is 7.3×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 6.2× is near the bottom of its own range — cheaper only 32% of the time, against a long-run median of 7.3× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +90.4% against a −17.5% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +10.7%/yr price move, ~+16.8%/yr came from earnings growth and ~−6.1 pp from the multiple (compressing); over 10y, of the +6.0%/yr price move, ~+7.6%/yr came from earnings growth and ~−1.6 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Gujarat Industries Power Co Ltd reads as mixed on its fundamental arc. Mixed — the growth curves are steadily positive, but ROCE at 4.4% is below the 15% bar this page requires to call it Consistent. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

The latest quarter’s profit carries a one-off item larger than the operating base, so the profit curve is shown but does not vote in the stage call.

4-Factor Sector Score

55.0/100 — rank 8 of 20 in Power - Generation/Distribution · 90% evidence confidence

Gujarat Industries Power Co Ltd scores 55.0 out of 100 against the 20 companies it is compared with in Power - Generation/Distribution, ranking 8. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 26.7 + 9.6 + 11.7 + 7 = 55. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Gujarat Industries Power Co Ltd reported ₹428 Cr of revenue in the Mar 26 quarter, +26.6% year on year. That is the 4th straight quarter of year-on-year growth. Over 10 years it has compounded at 1.0% a year. The last full year, FY26, came in at ₹1,491 Cr. The last four reported quarters add to ₹1,491 Cr.

FY26 revenue came in at ₹1,491 Cr (+18.7% on the year), capping 10 years at 1.0% compound. The latest quarter (Mar 26) printed ₹428 Cr, +26.6% year on year — the 4th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +18.5% growth against the decade's 1.0% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +18.7% over the last 4 quarters against +5.1%/yr over the last 8 — accelerating; TTM profit +89.6% vs +42.5%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Gujarat Industries Power Co Ltd's operating margin is 46.0% in the Mar 26 quarter, +11.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 28.0% to 39.0%. The current quarter is running above every full year in that window.

The latest quarter's operating margin is 46.0%, +11.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 28.0%–39.0%.

Why the margin moved: operating margin went +10.3 pp year on year while gross margin went +12.9 pp — the gain came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Gujarat Industries Power Co Ltd earned ₹327 Cr of net profit in the Mar 26 quarter, +367.1% year on year. Full-year FY26 profit was ₹402 Cr. The 10-year compound rate is 7.9%. That is 76.4% of the quarter's revenue. The same quarter a year earlier earned ₹70.0 Cr. 1 of the last 12 reported quarters were loss-making.

Mar 26 profit was ₹327 Cr, +367.1% year on year. On the full year, FY26 printed ₹402 Cr (+90.5%), and the 10-year compound rate is 7.9%.

Why profit moved: revenue contributed +26.6% and the margin +11.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +50.8% vs revenue +18.5%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 288% of Gujarat Industries Power Co Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹649 Cr of operating cash against ₹402 Cr of profit. After ₹2,266 Cr of capital spending, ₹−1,617 Cr was left as free cash.

FY26: operating cash of ₹649 Cr against reported profit of ₹402 Cr, leaving free cash of ₹−1,617 Cr after ₹2,266 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 288% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 288%: the cash cycle stretched 76 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 9.2× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Gujarat Industries Power Co Ltd's cash conversion cycle runs 157 days in FY26, up from 81 days in FY21. Capital spending ran ₹5,674 Cr over the last 3 years. At FY26 sales of ₹1,491 Cr each day of that cycle holds about ₹4.1 Cr, so roughly ₹641 Cr sits inside the business at any moment.

FY26: debtors at 64 days, inventory at 128 days — roughly 4.2 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 157 days, looser than FY21's 81.

The full loop: cash goes out to suppliers and production on day 0; stock waits 128 days to sell; customers pay about 64 days after that; and suppliers themselves are paid at 35 days — netting out to the 157-day cycle.

In money terms: at FY26 sales of ₹1,491 Cr, each day of the cycle holds about ₹4.1 Cr — so the 157-day loop keeps roughly ₹641 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹5,674 Cr over the last 3 fiscal years against ₹616 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹2,066 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Gujarat Industries Power Co Ltd earns a ROCE of 5% in FY26. Return on invested capital clears the cost of that capital by −9.5 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 27.0% net margin on 0.16× asset turns.

FY26 ROCE is 5%.

🚨 Why the return is what it is — the wiring (FY26): 27.0% net margin × 0.16× asset turns × 2.45× balance-sheet leverage ≈ 10.6% on equity. Margin is doing the heavy lifting; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 2.5% − 12.0% = a −9.5 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Gujarat Industries Power Co Ltd carries total debt of ₹3,594 Cr against shareholder equity of ₹3,840 Cr as of Mar 26, a debt-to-equity of 0.94. On the annual view that ratio went from 0.17 in FY22 to 0.94 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹3,594 Cr against shareholder equity of ₹3,840 Cr — a debt-to-equity of 0.94. On the annual view, debt-to-equity went from 0.17 (FY22) to 0.94 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions cut 1.8 points of Gujarat Industries Power Co Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 2.9% of the company. Promoters moved +1.1 points over the same window, to 56.6%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: −1.8 points over 8 quarters to 2.9%; Promoters: +1.1 points over 8 quarters to 56.6%; Domestic institutions: −0.9 points over 8 quarters to 5.0%.

🚨 Why the register moved: foreign institutions drove it (−1.8 points), absorbed on the other side by promoters (+1.1 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Gujarat Industries Power Co Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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