GPIL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.0

📊 Core Financials Breakdown

Profitability

ROE: 17.1% and ROCE: 23.4% — strong return metrics, indicating efficient capital deployment.

EPS: ₹10.4 — solid earnings base for a mid-cap steel player.

PAT Qtr: ₹200 Cr vs ₹204 Cr — stable, though quarterly profit dipped 27% YoY due to margin pressure

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Balance Sheet & Leverage

Debt-to-Equity: 0.06 — virtually debt-free, a major strength in a cyclical industry.

Book Value: ₹69.6 — implies a P/B ratio of ~3.7, reasonable given the ROE.

Dividend Yield: 0.38% — modest, but consistent.

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 25.0 Slightly above industry average (24.0) — fair valuation

PEG Ratio -1.61 Negative PEG suggests earnings volatility or growth uncertainty

Intrinsic Value ~₹240–₹250 CMP slightly above fair value zone

Valuation is fair, but PEG ratio flags caution due to recent profit contraction.

🏭 Business Model & Competitive Edge

Sector: Steel & Mining — integrated operations from iron ore mining to finished steel products.

Strengths

Captive iron ore mines and pellet plants reduce input cost volatility.

Diversified product mix: sponge iron, billets, wire rods, HB wires, ferro alloys, and power generation

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Received environmental clearance for a 2 MTPA integrated steel plant in Raipur — a major growth catalyst

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DII holding up (+0.24%) — positive domestic sentiment.

Challenges

FII holding slightly down (-0.07%) — cautious foreign stance.

Profit volatility due to commodity price swings and mining disruptions

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📉 Technicals & Entry Zone

Current Price: ₹260

DMA 50: ₹223 | DMA 200: ₹199 — bullish trend intact

RSI: 67.7 — nearing overbought zone

MACD: Positive — momentum strong

📌 Suggested Entry Zone: ₹230–₹245

A pullback near the 50 DMA would offer a better margin of safety for accumulation.

🧭 Long-Term Holding Guidance

Hold if invested: Strong fundamentals, low debt, and expansion plans make GPIL a solid long-term play.

Accumulate on dips: Ideal for investors seeking exposure to India’s infrastructure and steel demand cycle.

You can explore GPIL’s full financials and technical chart on TradingView or review its valuation and analyst insights on StockAnalysis

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. Let me know if you'd like a peer comparison with Sarda Energy or Tata Steel.

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in.tradingview.com

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