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

Strengths

• Trades at a 28% discount to book value: P/B of 0.72 against book value of ₹217.81.
• Promoter holding is high at 56.57%, showing owner alignment.
• Healthy dividend yield of 2.90% provides income while waiting for value to unlock.
• Sales growth of 14.89% shows top-line momentum despite weak profitability.
• Debt/equity of 0.79 is moderate for a capital-intensive power utility.

Concerns

• ROE of only 4.32% and ROCE of 6.44% indicate poor returns on capital.
• Latest quarter net profit is negative at ₹-3 Cr, with profit growth of -108.16%.
• Piotroski F-Score of 4/9 suggests deteriorating financial health.
• Headline P/E of 15.09 is unreliable given the recent loss-making quarterly performance.

AI Analysis

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.

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