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Check Before You Invest : Gujarat Natural Resources Ltd

BSE: 513536 NSE: ISIN: INE207H01018
  |   Sector:  Oil & Gas   |   Industry:  Oil Exploration

Snapshot

Q.1 Which industry/sub-sector does Gujarat Natural Resources Ltd belong to?
Gujarat Natural Resources Ltd belongs to the Oil & Gas sector, operating specifically within the Oil Exploration segment.
Q.2 Is Gujarat Natural Resources Ltd a good quality company?
Gujarat Natural Resources Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Gujarat Natural Resources Ltd undervalued or overvalued?
Gujarat Natural Resources Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Gujarat Natural Resources Ltd a good buy now?
Gujarat Natural Resources Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Gujarat Natural Resources Ltd?
Gujarat Natural Resources Ltd revenue growth is -68.8% for FY-2025 , which is below its 5 year CAGR of -27.5% , indicating slower growth.
Q.2 Gross Profit margin of Gujarat Natural Resources Ltd?
Gujarat Natural Resources Ltd Gross profit margin which is the profit after deduction of direct costs, is 34.1% for FY-2025 , which is above its 5 year median of -44.4% , indicating increasing margins.
Q.3 Operating Profit Margin of Gujarat Natural Resources Ltd?
Gujarat Natural Resources Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -66.26% for FY-2025 , which is below its 5 year median of -52.47% indicating decreasing margins.
Q.4 Net Profit Margin of Gujarat Natural Resources Ltd?
Gujarat Natural Resources Ltd Net Profit Margin is 26.08% for FY-2025 , is above with its 5 year median of -44.53%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 34.1 -44.4
Operating Profit Margin -66.26 -52.47
Net Profit Margin 26.08 -44.53
Q.5 Return on Asset of Gujarat Natural Resources Ltd?
Gujarat Natural Resources Ltd Return on Asset is 0.11%, which is above its 5 year historical median of -0.58%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Gujarat Natural Resources Ltd?
Gujarat Natural Resources Ltd Return on equity is 0.13% for FY-2025 , which is above its historical median of -0.76%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Gujarat Natural Resources Ltd?
Gujarat Natural Resources Ltd Return on capital employed is 1.2% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Gujarat Natural Resources Ltd?
Gujarat Natural Resources Ltd Cash conversion cycle is 138 days, above its historical median of -1396 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover - -
ROE 0.13 -0.76
ROCE 1.2 0.07
Cash Conversion Cycle 138 days -1396 days
Q.9 Debt to Equity ratio of Gujarat Natural Resources Ltd?
Gujarat Natural Resources Ltd Debt-to-Equity ratio is 0.07 , which is lower with the industry average of 0.11 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Gujarat Natural Resources Ltd?
Gujarat Natural Resources Ltd Debt to cash flow from operations is -0.24 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Gujarat Natural Resources Ltd?
Promoters hold 2.31% of the Gujarat Natural Resources Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Gujarat Natural Resources Ltd vs industry peers?
Gujarat Natural Resources Ltd revenue CAGR is -27.52% , compared to the industry median CAGR of 10.75% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 0.7 173.2
Gross Profit 0.3 29.8
Operating Profit - 28.2
Net Profit - 17.8
Operating Efficiency
Current Level Industry Median
Asset Turnover - 0.24
ROE 0.13 8.97
ROCE 1.2 10.55
Cash Conversion Cycle (days) 137.98 55

Valuation & price assessment

Q.1 Stock return of Gujarat Natural Resources Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 8.6% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 8.6% 55.9% 98.5% 154.7%
Q.3 Valuation ratios of Gujarat Natural Resources Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 168.98 0.00 11.98
Price to Book 6.72 0.77 1.32
Price to Sales 265.82 54.43 3.25
EV to EBITDA 148.76 0.00 7.77

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