Gujarat Industries Power Co Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (9.7x coverage).
• Dividends per share have been stable in the past 10 years.
• Gujarat Industries Power's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Gujarat Industries Power's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

health

Pros

• Gujarat Industries Power is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Gujarat Industries Power is profitable, therefore cash runway is not a concern.
• Gujarat Industries Power is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (101.6%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1.2x debt.
• The level of debt compared to net worth has been reduced over the past 5 years (40.7% vs 22.3% today).
• Interest payments on debt are well covered by earnings (EBIT is 10.5x coverage).
• Gujarat Industries Power's level of debt (22.3%) compared to net worth is satisfactory (less than 40%).

Cons

• Gujarat Industries Power's long term commitments exceed its cash and other short term assets.
• High level of physical assets or inventory.

management

Pros

• The tenure for the Gujarat Industries Power board of directors is about average.
• Vatsala's remuneration is about average for companies of similar size in India.
• The tenure for the Gujarat Industries Power management team is about average.

Cons

misc

Pros

Cons

• Gujarat Industries Power is not covered by any analysts.
• Gujarat Industries Power has significant price volatility in the past 3 months.

past

Pros

• Gujarat Industries Power's 1-year earnings growth exceeds its 5-year average (83.5% vs 20.4%)
• Gujarat Industries Power has delivered over 20% year on year earnings growth in the past 5 years.
• Gujarat Industries Power used its assets more efficiently than the IN Renewable Energy industry average last year based on Return on Assets.
• Gujarat Industries Power's earnings growth has exceeded the IN Renewable Energy industry average in the past year (83.5% vs 30.9%).

Cons

• Gujarat Industries Power's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Gujarat Industries Power has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Gujarat Industries Power's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Gujarat Industries Power's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Gujarat Industries Power is good value based on assets compared to the IN Renewable Energy industry average.
• Gujarat Industries Power is good value based on earnings compared to the IN Renewable Energy industry average.
• Gujarat Industries Power is good value based on earnings compared to the India market.
• GIPCL outperformed the Market in India which returned -14.5% over the past year.
• NSEI:GIPCL is up 16.4% outperforming the Renewable Energy industry which returned 13% over the past month.
• NSEI:GIPCL is up 16.4% outperforming the market in India which returned 8% over the past month.

Cons

• GIPCL underperformed the Renewable Energy industry which returned -4.4% over the past year.