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INVESTMENT INSIGHTS

Check Before You Invest : Gujarat Gas Ltd

BSE: 539336 NSE: GUJGASLTD ISIN: INE844O01030
  |   Sector:  Oil & Gas   |   Industry:  Gas Transmission/Marketing

Snapshot

Q.1 Which industry/sub-sector does Gujarat Gas Ltd belong to?
Gujarat Gas Ltd belongs to the Oil & Gas sector, operating specifically within the Gas Transmission/Marketing segment.
Q.2 Is Gujarat Gas Ltd a good quality company?
Gujarat Gas Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Gujarat Gas Ltd undervalued or overvalued?
Gujarat Gas Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Gujarat Gas Ltd a good buy now?
Gujarat Gas 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 Gas Ltd?
Gujarat Gas Ltd revenue growth is 5.1% for FY-2025 , which is below its 5 year CAGR of 9.9% , indicating slower growth.
Q.2 Gross Profit margin of Gujarat Gas Ltd?
Gujarat Gas Ltd Gross profit margin which is the profit after deduction of direct costs, is 12% for FY-2025 , which is below its 5 year median of 12.6% , indicating decreasing margins.
Q.3 Operating Profit Margin of Gujarat Gas Ltd?
Gujarat Gas Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.57% for FY-2025 , which is below its 5 year median of 12.78% indicating decreasing margins.
Q.4 Net Profit Margin of Gujarat Gas Ltd?
Gujarat Gas Ltd Net Profit Margin is 6.95% for FY-2025 , is below with its 5 year median of 7.81%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 12 12.6
Operating Profit Margin 11.57 12.78
Net Profit Margin 6.95 7.81
Q.5 Return on Asset of Gujarat Gas Ltd?
Gujarat Gas Ltd Return on Asset is 9.44%, which is below its 5 year historical median of 14.23%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Gujarat Gas Ltd?
Gujarat Gas Ltd Return on equity is 14.19% for FY-2025 , which is below its historical median of 24.22%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Gujarat Gas Ltd?
Gujarat Gas Ltd Return on capital employed is 19.8% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Gujarat Gas Ltd?
Gujarat Gas Ltd Cash conversion cycle is 6 days, below its historical median of 7 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.42 1.44
ROE 14.19 24.22
ROCE 19.8 31.42
Cash Conversion Cycle 6 days 7 days
Q.9 Debt to Equity ratio of Gujarat Gas Ltd?
Gujarat Gas Ltd Debt-to-Equity ratio is 0.00 , which is in line with the industry average of 0 , indicating similar to debt levels in the industry.
Q.10 Debt to cash flow from operations of Gujarat Gas Ltd?
Gujarat Gas Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Gujarat Gas Ltd?
Promoters hold 60.89% of the Gujarat Gas Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Gujarat Gas Ltd vs industry peers?
Gujarat Gas Ltd revenue CAGR is 9.86% , compared to the industry median CAGR of 13.33% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 16,487 2,020
Gross Profit 1,978.4 1,171.6
Operating Profit 1,899 1,184
Net Profit 1,146 790
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.42 1.21
ROE 14.19 20.03
ROCE 19.8 24.58
Cash Conversion Cycle (days) 5.67 29

Valuation & price assessment

Q.1 Stock return of Gujarat Gas Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 12.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 12.7% -7.7% -8.3% -18.5%
Q.3 Valuation ratios of Gujarat Gas Ltd vs historical?
The current P/E is lower 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 19.91 21.87 16.95
Price to Book 2.59 6.65 2.35
Price to Sales 1.43 2.49 1.95
EV to EBITDA 10.5 16.49 11.15

Check more companies

1. Gujarat Gas
2. Indraprastha Gas
3. Guj. State Petronet
4. Mahanagar Gas
5. Confidence Futurist.
6. Rudra Gas Enterprise
7. Eastern Gases
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