GSPL - Fundamental Analysis: Financial Health & Valuation

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

Fundamental Rating: 3.9

📊 Core Financials Breakdown

Profitability

ROE: 7.67% and ROCE: 9.60% — moderate returns, below ideal for a utility infrastructure company.

EPS: ₹13.1 — decent earnings base, though quarterly PAT dropped 32.8%, indicating margin pressure or seasonal volatility.

Dividend Yield: 1.58% — reasonable, adds value for long-term holders.

Balance Sheet & Leverage

Debt-to-Equity: 0.00 — debt-free, a major strength in a capital-intensive sector.

Book Value: ₹191 — implies a P/B ratio of ~1.65, fair for a stable utility player.

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 24.2 Above industry average (14.6) — slightly expensive

PEG Ratio -3.34 Negative PEG suggests unreliable or declining growth

Intrinsic Value ~₹300–₹310 CMP is slightly above fair value zone

Valuation is fair, but PEG ratio flags caution due to earnings volatility.

🔗 Business Model & Competitive Edge

Sector: Natural Gas Transmission — operates a high-pressure pipeline network across Gujarat.

Strengths

Strategic infrastructure linking major gas sources to industrial hubs.

Benefiting from proposed gas tariff reforms by PNGRB, which could improve margins

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FII holding up (+0.36%) — positive foreign sentiment.

Citi and Motilal Oswal have upgraded GSPL to “Buy” with target prices around ₹325–₹355

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Challenges

DII holding slightly down (−0.09%) — cautious domestic stance.

Profit contraction and negative PEG ratio suggest near-term softness.

Volume below weekly average — signals subdued trading interest.

📉 Technicals & Entry Zone

Current Price: ₹316

DMA 50: ₹311 | DMA 200: ₹323 — trading near support

RSI: 58.0 — neutral zone

MACD: Slightly positive — momentum stabilizing

📌 Suggested Entry Zone: ₹300–₹310

A dip near the 200 DMA or intrinsic value would offer a better margin of safety.

🧭 Long-Term Holding Guidance

Hold if invested: Strong infrastructure, regulatory tailwinds, and zero debt make GSPL a stable long-term play.

Accumulate on dips: Ideal for investors seeking exposure to India’s gas transmission backbone with moderate risk.

You can explore GSPL’s stock overview and analyst ratings or review brokerage reports and price targets for deeper insights. Let me know if you'd like a peer comparison with GAIL or Indraprastha Gas.

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stockanalysis.com

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trendlyne.com

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