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GVT&D - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.4
| Stock Code | GVT&D | Market Cap | 83,131 Cr. | Current Price | 3,244 ₹ | High / Low | 3,324 ₹ |
| Stock P/E | 74.4 | Book Value | 81.5 ₹ | Dividend Yield | 0.15 % | ROCE | 54.7 % |
| ROE | 40.4 % | Face Value | 2.00 ₹ | DMA 50 | 2,929 ₹ | DMA 200 | 2,632 ₹ |
| Chg in FII Hold | 2.31 % | Chg in DII Hold | -1.93 % | PAT Qtr | 340 Cr. | PAT Prev Qtr | 299 Cr. |
| RSI | 65.7 | MACD | 24.5 | Volume | 3,63,305 | Avg Vol 1Wk | 11,63,918 |
| Low price | 1,253 ₹ | High price | 3,324 ₹ | PEG Ratio | 0.92 | Debt to equity | 0.01 |
| 52w Index | 96.1 % | Qtr Profit Var | 139 % | EPS | 41.7 ₹ | Industry PE | 35.4 |
📊 Core Financials
- Revenue growth: PAT at 340 Cr vs 299 Cr in previous quarter, showing strong improvement (+139 % variation).
- Profit margins: EPS at 41.7 ₹, reflecting robust profitability.
- Debt ratios: Debt-to-equity at 0.01, virtually debt-free, ensuring financial stability.
- Cash flows: Supported by strong earnings and minimal leverage.
- Return metrics: ROCE 54.7 %, ROE 40.4 % — excellent efficiency and shareholder returns.
💹 Valuation Indicators
- P/E ratio: 74.4, significantly above industry average (35.4), suggests premium valuation.
- P/B ratio: Current Price / Book Value ≈ 39.8, very expensive relative to assets.
- PEG ratio: 0.92, indicates valuation is reasonable relative to growth.
- Intrinsic value: Valuation stretched, but strong returns justify partial premium.
🏢 Business Model & Competitive Advantage
- Operates in transmission and distribution infrastructure sector.
- Competitive advantage through scale, efficiency, and strong execution capabilities.
- Debt-free balance sheet and high return ratios strengthen long-term sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry zone: Attractive near 2,900–3,100 ₹ levels, closer to DMA 50 support.
- Long-term holding: Favorable due to strong fundamentals, high ROE/ROCE, and growth potential; suitable for investors seeking infrastructure exposure.
Positive
- Strong ROCE (54.7 %) and ROE (40.4 %).
- Debt-free balance sheet (Debt-to-equity 0.01).
- Quarterly PAT growth of 139 %.
- EPS at 41.7 ₹ reflects robust earnings.
- FII holdings increased (+2.31 %).
Limitation
- P/E ratio (74.4) far above industry average (35.4).
- P/B ratio at 39.8 indicates expensive valuation relative to assets.
- Dividend yield at 0.15 % is negligible.
- DII holdings decreased (-1.93 %).
Company Negative News
- Stock trading near 52-week high (3,324 ₹), limiting immediate upside.
- Volume lower than average (3,63,305 vs 11,63,918), showing reduced trading activity.
Company Positive News
- Quarterly PAT improved (340 Cr vs 299 Cr).
- Strong institutional support from FII investors.
- Technical indicators show strength: RSI at 65.7, MACD positive.
Industry
- Transmission and distribution sector supported by infrastructure growth and government initiatives.
- Industry PE at 35.4, much lower than GVT&D’s valuation, highlighting premium pricing.
Conclusion
- GVT&D demonstrates excellent fundamentals with high profitability, strong efficiency, and debt-free balance sheet.
- Valuation is stretched compared to industry peers, but strong returns justify partial premium.
- Entry advisable near support levels; long-term holding recommended for investors seeking exposure to infrastructure growth with robust fundamentals.
I can also extend this into a peer comparison HTML snapshot against companies like Power Grid Corporation and Adani Transmission to highlight GVT&D’s relative valuation and strengths.