GE Power (GVPIL)
TurnaroundFairStock Score: 42/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹769.6 |
| Market Cap | ₹5,173.83 Cr |
| P/E Ratio | 16.05 |
| ROCE | 6.09% |
| ROE | 259% |
| Dividend Yield | 0.91% |
| Profit Growth | 54.8% |
| Debt/Equity | 0.03 |
| Sales Growth | 18.7% |
| Promoter Holding | 68.58% |
| 52-Week Range | ₹270.9 — ₹1,084 |
| Sector | Electrical Equipment |
| Book Value | ₹16.73 |
Strengths
- Negligible debt: D/E of 0.05 provides balance sheet cushion
- Promoter holding of 68.58% aligns majority owners with minority investors
- Piotroski F-Score of 7/9 and 21.69% sales growth suggest improving fundamentals
- Latest quarter net profit of ₹72 Cr on ₹386 Cr sales shows a strong margin recovery
Concerns
- ROCE of 6.09% is weak despite the high headline ROE; book value is thin at ₹16.73
- Profit growth of 431.62% is off a low base and may not be sustainable; P/E of 19.07 could look expensive if growth normalises
- No dividend means minority shareholders depend entirely on price appreciation
- Extreme 52-week volatility from ₹270.90 to ₹1,084.00 reflects uncertain earnings visibility
AI Analysis
Looking at GE Power, my first question is what the business earns on capital. The 259% ROE looks spectacular, but it is an illusion because book value is only ₹16.73—a small profit creates a huge ratio. The more honest figure is ROCE of 6.09%, and that tells me this heavy electrical equipment business does not yet possess a durable competitive advantage. The debt/equity ratio of 0.05 is excellent, and promoter holding of 68.58% is reassuring. The Piotroski score of 7/9 also suggests improving financial health. Sales grew 21.69%, while profit jumped 431.62%, but that profit growth is off a very low base. The latest quarter's ₹72 Cr net profit against ₹386 Cr sales is encouraging, but I must ask whether it is repeatable. At ₹524.80, the market cap is ₹3,202 Cr; the trailing P/E is 19.07, and P/B is 31.37. No dividend means I receive no cash while waiting. The 52-week range of ₹270.90 to ₹1,084.00 tells me Mr. Market has been emotional; the current price is far below the high, so sentiment is no longer euphoric. The PEG of 0.08 looks tempting, but I never trust PEG for a turnaround—one bad quarter erases the 'growth' premium. This is a turnaround candidate, not a proven compounder. I need sustained order inflows, stable margins, and visible cash conversion before I can call it a great business. Price alone is insufficient; I want a margin of safety in durable earnings power.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer