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Gujarat Industries Power Company Ltd. Stock Analysis

Small Cap
Evaluated by 727 users | BSE: 517300 | NSE: GIPCL |
Power Generation/Distribution
Gujarat Industries Power Company (GIPCL), incorporated in 1985, is engaged in business of power generation. The company is jointly promoted by Gujarat State Fertilizers and Chemicals, Gujarat Alkalies & Chemicals (GACL), Gujarat Urja Vikas Nigam (formerly known as Gujarat Electricity...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 5.45%8.83%8.51%10.29%9.88%7.69%9.49%10.35%9.93%11.71%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 9391,0851,3001,4161,3771,2151,3521,3111,3541,407
Y-o-Y Gr. Rt.-15.6%19.8%8.9%-2.8%-11.8%11.3%-3.1%3.3%4%
Adjusted EPS (Rs.) 7.0110.668.1811.6412.068.8812.0314.2716.1821.75
Y-o-Y Gr. Rt.-52.1%-23.3%42.3%3.6%-26.4%35.5%18.6%13.4%34.4%
Book Value per Share (Rs.) 81.5489.6895.17106.72116.08121.42134.43147.83162.58169.96
Adjusted Net Profit 106161124176182134182216245329
Net Op. Cash Flow (Rs. Cr.) 228302482408398405232433337590
Debt to Cash Flow from Ops 4.683.681.962.11.81.52.050.961.830.97
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Gujarat Industries Power Company Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 4.6%0.4%1.3%4%
Adjusted EPS 13.4%12.5%21.8%34.4%
Book Value per Share 8.57.98.14.5
Share Price -2% -3.2% -21% -5.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 8.7312.358.8211.5310.827.479.410.1110.4313.08
Operating Profit Margin (%) 23.4428.5333.2338.3134.1634.829.6732.8735.5438.88
Net Profit Margin (%) 11.2914.859.5112.4313.2511.0513.4516.4718.0823.38
Debt to Equity 0.860.820.660.530.410.330.230.190.250.22
Working Capital Days 118112108100109132153177174181
Cash Conversion Cycle -4803634585863797356
Entity Percentage Holding
Promoters 55.69%
Institutions 22.57%
Non-Institutions 21.74%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Gujarat Industries Power Company Ltd.'s performance infers:

Gujarat Industries Power Company Ltd. earnings have grown by 12.5%, whereas share price has depreciated -3.2% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Gujarat Industries Power Company Ltd. share prices over the last 10 years. Here is what we found out:

Gujarat Industries Power Company Ltd. share price has depreciated -5.1% annually over the past ten years.

Gujarat Industries Power Company (GIPCL), incorporated in 1985, is engaged in business of power generation. The company is jointly promoted by Gujarat State Fertilizers and Chemicals, Gujarat Alkalies & Chemicals (GACL), Gujarat Urja Vikas Nigam (formerly known as Gujarat Electricity Board), Petrofils Cooperatives and Heavy Water Project (HWP) of the Atomic Energy Department of Government of India. The company was set up in order cater the captive electrical energy needs of promoter

Gujarat Industries Power Company (GIPCL), incorporated in 1985, is engaged in business of power generation. The company is jointly promoted by Gujarat State Fertilizers and Chemicals, Gujarat Alkalies & Chemicals (GACL), Gujarat Urja Vikas Nigam (formerly known as Gujarat Electricity Board), Petrofils Cooperatives and Heavy Water Project (HWP) of the Atomic Energy Department of Government of India. The company was set up in order cater the captive electrical energy needs of promoter companies.

The company is also engaged in conducting research and development operations such as identification and completion of geological survey work at chosen site and conducting seismic survey for mapping of lignite deposits at said area..

GIPCL generates electrical power with a total capacity of 560 MW from plants situated at Vadodara and Mangrol. The company has received ISO 9001:2000, ISO 14001:2004 and OHSAS 18001:1999 for its Quality Management.

Power Projects

Vadodara Station-I- The company set up this plant in February, 1992 in order to supply power to promoter companies. The plant encompasses 3X32 MW Gas Turbine and 1X49 MW Steam Turbine with total power generation capacity of 145MV. This project required an investment of Rs 215 crore.

Vadodara Station-II- This plant was set up in November, 1997 and acts as Independent Power Producer. The plant is equipped with 111 MW Gas Turbine and 1X54 MW Steam Turbine that has total power generating capacity of 165 MW. This project required an investment of Rs. 215 Crores. It has entered into Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam.

Surat Lignite Power Plant- This lignite-based power plant was commissioned in November 1999. The plant encompasses 2X125 MW with Circulating Fluidized Bed Combustion (CFBC) Boilers and STGs. This project required an investment of Rs 1210 crore for plant and Rs 245 crore for mining. It has entered into a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam.

Recognition

The company's SLPP Mining Division has received the National Safety Award (Mines) given by the Ministry of Labour and Employment, Government of India for two consecutive years i.e. 2004 and 2005.

New Developments

Gujarat Industries Power Company is implementing 2 x 125 MW SLPP Phase II Expansion Project along with the expansion of lignite mines, which is in advanced stage of implementation. The new mine at Mangrol is designed to produce 2.4 million tonnes lignite per annum. The project is scheduled to be commissioned in mid 2009.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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