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Gujarat Gas Ltd

NSE: GUJGASLTD BSE: 539336

411.15

(-0.11%)

Thu, 26 Feb 2026, 06:54 am

Gujarat Gas Analysis

dividend

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Pros

  • Dividends paid are thoroughly covered by earnings (13.9x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (5.7x coverage).
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Cons

  • Dividend payments have increased, but Gujarat Gas only paid a dividend in the past 4 years.
  • Whilst dividend payments have been stable, Gujarat Gas has been paying a dividend for less than 10 years.
  • Gujarat Gas's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Gujarat Gas's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Gujarat Gas is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
  • Gujarat Gas's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for Gujarat Gas is expected to increase but not above the 50% threshold in 2 years time.
  • Gujarat Gas's earnings are expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).
  • Gujarat Gas's earnings growth is positive but not above the India market average.
  • Gujarat Gas's earnings growth is positive but not above the low risk savings rate of 7.2%.
  • Gujarat Gas's earnings are expected to decrease over the next year.
  • Gujarat Gas's net income is expected to decrease over the next 2 years.
  • Performance (ROE) is not expected to exceed the current IN Gas Utilities industry average.
  • A decline in Gujarat Gas's performance (ROE) is expected over the next 3 years.
  • Gujarat Gas's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Gujarat Gas's revenue is expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Gujarat Gas is profitable, therefore cash runway is not a concern.
  • Gujarat Gas is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (77.4%, greater than 20% of total debt).
  • The level of debt compared to net worth has been reduced over the past 5 years (160.5% vs 55.3% today).
  • Interest payments on debt are well covered by earnings (EBIT is 6.8x coverage).
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Cons

  • Gujarat Gas's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Debt is not covered by short term assets, assets are 0.8x debt.
  • Gujarat Gas's long term commitments exceed its cash and other short term assets.
  • Gujarat Gas's level of debt (55.3%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Gujarat Gas management team is about average.
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Cons

  • The average tenure for the Gujarat Gas board of directors is less than 3 years, this suggests a new board.

misc

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Pros

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    Cons

    • Gujarat Gas has significant price volatility in the past 3 months.

    past

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    Pros

    • Gujarat Gas's 1-year earnings growth exceeds its 5-year average (185.7% vs 26.3%)
    • Gujarat Gas has delivered over 20% year on year earnings growth in the past 5 years.
    • Gujarat Gas used its assets more efficiently than the IN Gas Utilities industry average last year based on Return on Assets.
    • Gujarat Gas has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
    • Gujarat Gas has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
    • Gujarat Gas's earnings growth has exceeded the IN Gas Utilities industry average in the past year (185.7% vs 59.5%).
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    Cons

      value

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      Pros

      • GUJGASLTD outperformed the Gas Utilities industry which returned -4.1% over the past year.
      • GUJGASLTD outperformed the Market in India which returned -14.5% over the past year.
      • NSEI:GUJGASLTD is up 19.9% outperforming the Gas Utilities industry which returned 15.1% over the past month.
      • NSEI:GUJGASLTD is up 19.9% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Gujarat Gas's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Gujarat Gas's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Gujarat Gas is overvalued based on assets compared to the IN Gas Utilities industry average.
      • Gujarat Gas is poor value based on expected growth next year.
      • Gujarat Gas is overvalued based on earnings compared to the IN Gas Utilities industry average.
      • Gujarat Gas is overvalued based on earnings compared to the India market.

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