⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
GPIL - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 4.3
| Stock Code | GPIL | Market Cap | 15,780 Cr. | Current Price | 236 ₹ | High / Low | 290 ₹ |
| Stock P/E | 20.0 | Book Value | 75.4 ₹ | Dividend Yield | 0.42 % | ROCE | 23.4 % |
| ROE | 17.1 % | Face Value | 1.00 ₹ | DMA 50 | 245 ₹ | DMA 200 | 223 ₹ |
| Chg in FII Hold | 0.12 % | Chg in DII Hold | -0.24 % | PAT Qtr | 248 Cr. | PAT Prev Qtr | 200 Cr. |
| RSI | 45.0 | MACD | -4.17 | Volume | 6,75,563 | Avg Vol 1Wk | 19,78,980 |
| Low price | 146 ₹ | High price | 290 ₹ | PEG Ratio | -1.29 | Debt to equity | 0.03 |
| 52w Index | 62.3 % | Qtr Profit Var | 60.7 % | EPS | 11.8 ₹ | Industry PE | 20.6 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT rose from 200 Cr. to 248 Cr. (↑ 24%), strong momentum.
- Margins: ROCE at 23.4% and ROE at 17.1% indicate efficient capital use.
- Debt Ratios: Debt-to-equity at 0.03 shows negligible leverage, strong balance sheet.
- Cash Flows: Healthy operating cash generation implied by rising profits and low debt.
💹 Valuation Indicators
- P/E Ratio: 20.0, in line with industry PE of 20.6, fairly valued.
- P/B Ratio: Current Price / Book Value ≈ 3.1, slightly premium.
- PEG Ratio: -1.29, distorted due to high earnings growth, suggests undervaluation.
- Intrinsic Value: Based on EPS (₹11.8) and industry PE, fair value ≈ ₹243–250.
🏢 Business Model & Competitive Advantage
- Integrated steel and mining operations provide cost efficiency and scale.
- Strong domestic demand for steel supports long-term growth.
- Low debt enhances resilience against commodity cycles.
📈 Entry Zone & Holding Guidance
- Entry Zone: Attractive between ₹220–230, near DMA200 support (₹223).
- Long-Term Holding: Suitable for investors seeking exposure to steel sector with strong fundamentals.
✅ Positive
- Strong quarterly profit growth (↑ 60.7%).
- Low debt-to-equity ratio (0.03).
- High ROCE and ROE indicating efficient capital deployment.
⚠️ Limitation
- Dividend yield is low (0.42%).
- Stock trades at a premium to book value.
- Moderate liquidity with falling average weekly volume.
📉 Company Negative News
- No major recent negative news reported; risks remain tied to steel price volatility.
📢 Company Positive News
- Consistent profit growth and improved FII holdings (+0.12%).
- Strong operational performance in latest quarter.
🏭 Industry
- Steel industry PE at 20.6, aligned with GPIL valuation.
- Sector benefits from infrastructure push and rising domestic demand.
- Global steel cycle volatility remains a risk factor.
🔎 Conclusion
- GPIL shows strong fundamentals with robust profitability, low debt, and fair valuation.
- Entry near ₹220–230 offers a margin of safety.
- Recommended as a long-term hold for investors seeking stable exposure to steel sector growth.
NIFTY 50 - Today Top Fundamental Picks Stock Picks
NEXT 50 - Today Top Fundamental Picks Stock Picks
MIDCAP - Today Top Fundamental Picks Stock Picks
SMALLCAP - Today Top Fundamental Picks Stock Picks