Guj Inds. Power (GIPCL)

FairStock Score: 49/100 — MIXED

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let's look at GIPCL through the lens Graham taught me: is there a margin of safety, and does the business earn a decent return on capital? At ₹156.12, the stock trades at only 0.72 times book value of ₹217.81. That is a striking discount, and with promoter holding at 56.57%, there is some alignment of interest. The 2.90% dividend yield also gives me something to wait with. But cheapness alone is not enough. I need to see earning power. The ROE is only 4.32% and ROCE 6.44% — that is nowhere near the kind of returns I expect from a good business. The latest quarter actually shows a net loss of ₹3 Cr on sales of ₹370 Cr, and reported profit growth is -108.16%. So the P/E of 15.09 is built on very fragile earnings. Sales grew 14.89%, but the Piotroski F-Score of 4/9 tells me financial health is weak, not improving. Debt to equity of 0.79 is manageable, but in an asset-heavy utility with low returns, leverage can amplify pain. This looks like an asset play, not a high-quality compounder. As Graham would say, buying below book is a starting point, not a conclusion. I need proof that these assets can generate sustainable profits again. Until then, this is a stock for the patient value seeker, not for someone expecting wonderful business economics.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer