GSPL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.5

🔍 Core Financials & Efficiency

EPS (₹19.7) suggests decent profitability, though quarterly PAT dip (-50.6%) raises caution.

ROCE (15.0%) & ROE (9.89%) — acceptable returns, but room to improve.

Debt-to-Equity (0.01) — virtually debt-free, enabling stability and investment flexibility.

Dividend Yield (1.56%) — modest, not a core income play but still shareholder-aligned.

Financial fundamentals are stable, though profit volatility tempers overall quality.

💸 Valuation Snapshot

Metric Value Interpretation

P/E Ratio 16.3 Reasonable, slightly above industry (14.4)

P/B Ratio ~1.56 Fair valuation relative to book

PEG Ratio -1.33 Negative due to earnings contraction — not meaningful now

Intrinsic Value — Estimated range ₹300–₹330 — currently near fair value

Valuation is sensible, with no glaring premium or deep discount.

🏗️ Business Model & Competitive Edge

Sector: Natural gas transmission — critical to energy infrastructure.

Strengths

Extensive pipeline network across Gujarat and interconnections to national grid.

Stable regulatory framework for gas pricing.

Resilient balance sheet with minimal debt and steady cash generation.

Risks

Declining quarterly profits require close monitoring.

Revenue tied to offtake volumes and pricing trends.

Limited growth levers unless new capacity or partnerships emerge.

📉 Technicals & Entry Guidance

Current Price: ₹321

DMA 50 / 200: ₹328 / ₹331 — price trading below averages

RSI (40.4): Approaching oversold — possible bounce setup

MACD (-1.06): Bearish momentum, no trend reversal yet

Volume Dip: Sign of cooling interest

🛒 Suggested Entry Zone: ₹290–₹310 Ideal for accumulation on dips; avoid premature entry until trend stabilizes.

📦 Long-Term Holding View

GSPL is suited for conservative investors seeking infrastructure-linked exposure with low debt and predictable cash flows

Not a growth rocket, but a solid defensive pick for capital protection

Quarterly profit correction may be short-term — watch for demand recovery and cost discipline

Long-term potential tied to policy thrust on gas infrastructure and clean energy mix

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