⚠ 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.
GUJGASLTD - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | GUJGASLTD | Market Cap | 24,676 Cr. | Current Price | 359 ₹ | High / Low | 509 ₹ |
| Stock P/E | 21.3 | Book Value | 126 ₹ | Dividend Yield | 1.62 % | ROCE | 19.6 % |
| ROE | 14.3 % | Face Value | 2.00 ₹ | DMA 50 | 401 ₹ | DMA 200 | 424 ₹ |
| Chg in FII Hold | 0.12 % | Chg in DII Hold | 0.09 % | PAT Qtr | 266 Cr. | PAT Prev Qtr | 281 Cr. |
| RSI | 32.1 | MACD | -12.6 | Volume | 6,49,278 | Avg Vol 1Wk | 54,98,359 |
| Low price | 355 ₹ | High price | 509 ₹ | PEG Ratio | -5.54 | Debt to equity | 0.02 |
| 52w Index | 2.44 % | Qtr Profit Var | 19.8 % | EPS | 16.9 ₹ | Industry PE | 14.4 |
📊 Core Financials
- Quarterly PAT declined from ₹281 Cr. to ₹266 Cr., showing mild weakness.
- ROCE at 19.6% and ROE at 14.3% → decent efficiency compared to peers.
- Debt-to-equity ratio of 0.02 → virtually debt-free.
- Cash flows supported by steady gas distribution operations.
💹 Valuation Indicators
- P/E Ratio: 21.3 vs Industry PE of 14.4 → trading at a premium.
- P/B Ratio: ~2.85x (₹359 / ₹126) → moderate valuation.
- PEG Ratio: -5.54 → negative, indicating weak growth visibility.
- Intrinsic Value: Current price above fair zone, reflecting optimism in gas demand.
🏢 Business Model & Competitive Advantage
- City gas distribution company with strong presence in Gujarat and expanding footprint.
- Low debt and efficient operations provide resilience.
- Exposure to regulatory changes and commodity prices may affect margins.
📈 Technical & Entry Zone
- Current Price: ₹359, below 50 DMA (₹401) and 200 DMA (₹424).
- RSI: 32.1 → oversold zone, potential rebound.
- MACD: -12.6 → bearish momentum.
- Entry Zone: Attractive accumulation between ₹340–₹355.
- Long-Term Holding: Suitable for investors with 3–5 year horizon, given sector demand growth.
✅ Positive
- Low debt levels (0.02 debt-to-equity).
- Dividend yield of 1.62% provides steady income.
- FII holdings increased by 0.12% and DII holdings by 0.09%.
⚠️ Limitation
- High P/E ratio compared to industry average.
- Negative PEG ratio indicates weak growth visibility.
- Quarterly PAT decline raises short-term concerns.
📉 Company Negative News
- Stock corrected from 52-week high of ₹509.
- Quarterly PAT declined from ₹281 Cr. to ₹266 Cr.
📈 Company Positive News
- EPS of ₹16.9 reflects profitability despite margin pressures.
- FII and DII inflows indicate institutional confidence.
🏭 Industry
- Gas distribution sector supported by rising demand for cleaner fuels.
- Industry PE at 14.4 indicates moderate investor confidence.
🔎 Conclusion
GUJGASLTD is a city gas distribution company with strong fundamentals, low debt, and steady demand outlook.
Despite short-term earnings weakness and premium valuations, its long-term prospects remain intact.
Best accumulated around ₹340–₹355 for investors with a 3–5 year horizon, supported by dividend yield and sector growth.