GUJGASLTD - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | GUJGASLTD | Market Cap | 26,162 Cr. | Current Price | 380 ₹ | High / Low | 509 ₹ |
| Stock P/E | 22.5 | Book Value | 126 ₹ | Dividend Yield | 1.53 % | ROCE | 19.6 % |
| ROE | 14.3 % | Face Value | 2.00 ₹ | DMA 50 | 369 ₹ | DMA 200 | 405 ₹ |
| Chg in FII Hold | 0.16 % | Chg in DII Hold | -0.30 % | PAT Qtr | 266 Cr. | PAT Prev Qtr | 281 Cr. |
| RSI | 59.4 | MACD | 9.01 | Volume | 6,61,291 | Avg Vol 1Wk | 7,52,914 |
| Low price | 302 ₹ | High price | 509 ₹ | PEG Ratio | -5.87 | Debt to equity | 0.02 |
| 52w Index | 37.9 % | Qtr Profit Var | 19.8 % | EPS | 16.9 ₹ | Industry PE | 21.5 |
📊 Financials: GUJGASLTD shows moderate fundamentals with ROE at 14.3% and ROCE at 19.6%, reflecting fair efficiency. EPS at ₹16.9 is modest relative to price levels. Quarterly PAT declined to ₹266 Cr. from ₹281 Cr., indicating short-term earnings pressure. Debt-to-equity at 0.02 highlights a nearly debt-free balance sheet.
💹 Valuation: Current P/E of 22.5 is slightly above the industry average of 21.5, suggesting mild overvaluation. PEG ratio of -5.87 signals weak growth prospects. Book value of ₹126 vs. CMP ₹380 shows a high P/B multiple, justified only by efficiency and sectoral demand.
🏗️ Business Model: GUJGASLTD operates in city gas distribution, benefiting from rising demand for clean energy. Its competitive advantage lies in strong infrastructure, regulatory support, and long-term sectoral growth visibility.
📈 Entry Zone: Accumulation near ₹365–₹375 (close to DMA50 support) offers favorable risk-reward. RSI at 59.4 indicates neutral momentum, while MACD at 9.01 shows mild bullishness. Exit strategy near ₹400–₹410 with stop-loss around ₹355.
🕰️ Long-Term Holding: Strong efficiency metrics and low debt support stability, but weak growth outlook and earnings pressure limit aggressive upside. Suitable for cautious long-term investors seeking exposure to the gas distribution sector.
Positive
- Strong ROCE (19.6%) and ROE (14.3%)
- Low debt-to-equity ratio (0.02)
- EPS of ₹16.9 supports earnings base
- Incremental increase in FII holdings (+0.16%)
Limitation
- Quarterly PAT decline (₹281 Cr. → ₹266 Cr.)
- Negative PEG ratio (-5.87) signals poor growth outlook
- P/E (22.5) slightly above industry average (21.5)
- DII holdings decreased (-0.30%)
Company Negative News
- Recent earnings decline raises concerns
- Weak growth outlook reflected in negative PEG ratio
Company Positive News
- Strong fundamentals with low debt
- FII holdings increased (+0.16%)
Industry
- Gas distribution industry P/E at 21.5 reflects moderate valuations
- Sector supported by rising demand for clean energy
Conclusion
GUJGASLTD is financially stable with strong efficiency and low debt, but weak growth prospects and earnings pressure limit upside. Entry near ₹365–₹375 is favorable, with profit booking advised near ₹400–₹410. Best suited for cautious investors seeking clean energy exposure with moderate risk.