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Last Updated on: 15 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 539336 | NSE: GUJGASLTD

Gujarat Gas Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 3:15 pm

Market Cap 33,456 Cr.
Current Price 486
High / Low690/421
Stock P/E27.2
Book Value 116
Dividend Yield1.16 %
ROCE20.4 %
ROE15.0 %
Face Value 2.00
PEG Ratio-138.85

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Gujarat Gas Ltd

Competitors of Gujarat Gas Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Gas Ltd 33,456 Cr. 486690/42127.2 1161.16 %20.4 %15.0 % 2.00
GAIL (India) Ltd 1,24,197 Cr. 189246/12310.8 1272.91 %14.7 %14.0 % 10.0
Industry Average78,826.50 Cr337.5019.00121.502.04%17.55%14.50%6.00

All Competitor Stocks of Gujarat Gas Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales3,0113,6255,1444,6695,1703,9763,6843,9293,7823,8453,9294,1344,450
Expenses2,2883,2064,9073,9724,5633,3343,1023,3683,3943,3493,5283,5433,915
Operating Profit723419237697607643582560388497401591536
OPM %24%12%5%15%12%16%16%14%10%13%10%14%12%
Other Income2218366201932332528248839
Interest1612141414138678778
Depreciation919597102103106109109115118120121123
Profit before tax638330163587510542498478290399297551444
Tax %25%26%25%24%25%25%25%22%26%26%26%25%26%
Net Profit477245123444382404372370216296221410331
EPS in Rs6.923.571.796.465.555.875.405.383.144.303.215.964.80

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales9,0066,1065,0936,1747,75410,3009,86616,45616,75915,69016,359
Expenses7,8945,3674,3315,2616,7588,6527,76114,35414,33813,81414,335
Operating Profit1,1127397629139971,6492,1052,1032,4221,8762,024
OPM %12%12%15%15%13%16%21%13%14%12%12%
Other Income10112182995827079101164179
Interest33425021820620820513482672930
Depreciation238245257272288318344385428474482
Profit before tax6412563054645961,2081,6981,7152,0281,5371,691
Tax %31%26%28%37%30%1%25%25%25%26%
Net Profit4471902212924181,1991,2701,2871,5281,1441,258
EPS in Rs0.992.763.204.256.0817.4118.4518.7022.2016.6118.27
Dividend Payout %15%18%19%19%16%7%11%11%30%34%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-57.49%16.32%32.13%43.15%186.84%5.92%1.34%18.73%-25.13%
Change in YoY Net Profit Growth (%)0.00%73.81%15.81%11.02%143.69%-180.92%-4.58%17.39%-43.86%

Gujarat Gas Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2015-2016 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:15%
3 Years:17%
TTM:7%
Compounded Profit Growth
10 Years:%
5 Years:21%
3 Years:-5%
TTM:-2%
Stock Price CAGR
10 Years:%
5 Years:20%
3 Years:-10%
1 Year:15%
Return on Equity
10 Years:%
5 Years:25%
3 Years:21%
Last Year:15%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:37 pm

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital138138138138138138138138138138138
Reserves1,8721,3861,5261,7292,0683,1804,3405,4926,8907,5857,838
Borrowings3,2262,3572,3592,3282,2132,055983629152150146
Other Liabilities1,6792,1892,3532,4672,7392,5533,0793,3293,7473,8194,314
Total Liabilities6,9156,0696,3756,6627,1587,9258,5399,58710,92711,69212,435
Fixed Assets4,4874,6734,9035,0945,2905,5856,0406,6317,3387,7637,983
CWIP357468506478489569731992983918883
Investments1,11814492414243485263168171
Other Assets9537848751,0491,3371,7281,7191,9122,5442,8423,398
Total Assets6,9156,0696,3756,6627,1587,9258,5399,58710,92711,69212,435

Reserves and Borrowings Chart

Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1,0946377017859641,4201,6591,6622,3751,634
Cash from Investing Activity +-365375-458-430-612-466-614-1,294-1,039-879
Cash from Financing Activity +-563-1,224-251-273-349-502-1,318-628-678-514
Net Cash Flow166-212-9823451-273-260658241

Free Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-2.00737.00760.00911.00995.00-1.00-981.00-627.00-150.00-149.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days15182523241829212224
Inventory Days2344423
Days Payable21193023211623
Cash Conversion Cycle-42-14748212224
Working Capital Days-81-85-67-55-45-38-43-23-32-34
ROCE %12%13%17%19%29%34%31%31%20%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters60.89%60.89%60.89%60.89%60.89%60.89%60.89%60.89%60.89%60.89%60.89%60.89%
FIIs7.72%5.98%5.18%5.03%5.17%4.67%4.47%3.80%3.34%3.72%4.31%4.51%
DIIs8.03%9.53%10.01%13.03%12.55%13.28%13.28%13.09%13.98%15.04%14.75%14.38%
Government0.00%0.00%0.00%7.08%7.01%7.01%7.01%7.01%7.01%7.01%7.01%7.01%
Public23.36%23.60%23.91%13.96%14.38%14.15%14.34%15.20%14.78%13.32%13.04%13.20%
No. of Shareholders1,81,3161,86,4951,96,5571,91,2781,85,0901,80,7471,84,2812,11,3782,13,4321,78,6641,74,5491,72,026

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
ICICI Prudential Multi Asset Fund6,709,1400.98455.481,030,6902024-11-13550.94%
ICICI Prudential Large & Mid Cap Fund5,349,8092.31363.21,030,6902024-11-13419.05%
DSP Mid Cap Fund4,383,7711.49297.611,030,6902024-11-13325.32%
ICICI Prudential Infrastructure Fund3,398,0773.81230.71,030,6902024-11-13229.69%
Nippon India Growth Fund2,900,0000.6196.881,030,6902024-11-13181.36%
ICICI Prudential MidCap Fund2,297,9132.33156.011,030,6902024-11-13122.95%
UTI Mid Cap Fund2,090,7631.14141.941,030,6902024-11-13102.85%
ICICI Prudential Value Discovery Fund1,445,5080.298.141,030,6902024-11-1340.25%
ICICI Prudential Multicap Fund1,231,8390.683.631,030,6902024-11-1319.52%
Aditya Birla Sun Life Equity Advantage Fund1,030,6901.1169.971,030,6902024-11-130%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)16.6122.2018.7018.5617.41
Diluted EPS (Rs.)16.6122.2018.7018.5617.41
Cash EPS (Rs.)23.4728.3824.2723.4822.03
Book Value[Excl.RevalReserv]/Share (Rs.)112.18102.0981.7865.5448.19
Book Value[Incl.RevalReserv]/Share (Rs.)112.18102.0981.7865.5448.19
Revenue From Operations / Share (Rs.)227.92243.45239.05143.15149.63
PBDIT / Share (Rs.)28.8036.2231.4831.4124.96
PBIT / Share (Rs.)21.9130.0025.8926.4520.34
PBT / Share (Rs.)22.2929.4124.8924.7717.55
Net Profit / Share (Rs.)16.5822.1618.6818.5317.41
NP After MI And SOA / Share (Rs.)16.6122.2018.7018.5617.41
PBDIT Margin (%)12.6314.8713.1621.9316.68
PBIT Margin (%)9.6112.3210.8318.4813.59
PBT Margin (%)9.7812.0810.4117.3011.72
Net Profit Margin (%)7.279.107.8112.9411.63
NP After MI And SOA Margin (%)7.289.117.8212.9611.63
Return on Networth / Equity (%)14.8121.7422.8628.3236.13
Return on Capital Employeed (%)16.9925.4125.1829.0522.93
Return On Assets (%)9.7813.9813.4215.0615.12
Long Term Debt / Equity (X)0.000.000.060.170.55
Total Debt / Equity (X)0.000.000.080.170.55
Asset Turnover Ratio (%)1.391.631.821.201.37
Current Ratio (X)0.790.700.550.630.79
Quick Ratio (X)0.770.680.530.610.76
Inventory Turnover Ratio (X)209.52231.76254.62141.99136.28
Dividend Payout Ratio (NP) (%)0.009.0010.696.735.74
Dividend Payout Ratio (CP) (%)0.007.038.235.314.53
Earning Retention Ratio (%)0.0091.0089.3193.2794.26
Cash Earning Retention Ratio (%)0.0092.9791.7794.6995.47
Interest Coverage Ratio (X)67.6461.7938.1418.598.94
Interest Coverage Ratio (Post Tax) (X)38.0338.8123.8411.977.24
Enterprise Value (Cr.)36540.0530964.7735062.2038293.7817152.47
EV / Net Operating Revenue (X)2.331.852.133.891.67
EV / EBITDA (X)18.4312.4216.1817.719.98
MarketCap / Net Operating Revenue (X)2.391.892.103.841.55
Retention Ratios (%)0.0090.9989.3093.2694.25
Price / BV (X)4.854.506.158.394.83
Price / Net Operating Revenue (X)2.391.892.103.841.55
EarningsYield0.030.040.030.030.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Gujarat Gas Ltd as of November 15, 2024 is: 478.77

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 15, 2024, Gujarat Gas Ltd is Overvalued by 1.49% compared to the current share price 486.00

Default values used*: Default value of 15% for ROE is used

Intrinsic Value of Gujarat Gas Ltd as of November 15, 2024 is: 477.83

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 15, 2024, Gujarat Gas Ltd is Overvalued by 1.68% compared to the current share price 486.00

Default values used*: Default value of 15% for ROE is used

Last 5 Year EPS CAGR: -0.20%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 20.60%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -50.30, which is a positive sign.
  3. The company has higher reserves (3,991.45 cr) compared to borrowings (1,508.91 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (10.45 cr) and profit (206.27 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 8.70, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Gujarat Gas Ltd:
    1. Net Profit Margin: 7.27%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 16.99% (Industry Average ROCE: 17.55%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 14.81% (Industry Average ROE: 14.5%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 38.03
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.77
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 27.2 (Industry average Stock P/E: 19)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Gujarat Gas Ltd. is a Public Limited Listed company incorporated on 21/02/2012 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L40200GJ2012SGC069118 and registration number is 069118. Currently Company is involved in the business activities of Manufacture of gas; distribution of gaseous fuels through mains. Company’s Total Operating Revenue is Rs. 16456.22 Cr. and Equity Capital is Rs. 137.68 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Gas Transmission/MarketingGujarat Gas CNG Station, Gandhinagar Gujarat 382006Investors@GUJARATGAS.com
http://www.gujaratgas.com
Management
NamePosition Held
Mr. Raj KumarChairman
Mr. Milind TorawaneManaging Director
Mr. Balwant SinghDirector
Dr. Rekha JainDirector
Prof. Yogesh SinghDirector
Mr. Bhadresh MehtaDirector
Mr. S J HaiderDirector

FAQ

What is the latest intrinsic value of Gujarat Gas Ltd?

The latest intrinsic value of Gujarat Gas Ltd as on 15 November 2024 is ₹478.77, which is 1.49% lower than the current market price of ₹486.00.

What is the Market Cap of Gujarat Gas Ltd?

The Market Cap of Gujarat Gas Ltd is 33,456 Cr..

What is the current Stock Price of Gujarat Gas Ltd as on 15 November 2024?

The current stock price of Gujarat Gas Ltd as on 15 November 2024 is ₹486.

What is the High / Low of Gujarat Gas Ltd stocks in FY 2024?

In FY 2024, the High / Low of Gujarat Gas Ltd stocks is 690/421.

What is the Stock P/E of Gujarat Gas Ltd?

The Stock P/E of Gujarat Gas Ltd is 27.2.

What is the Book Value of Gujarat Gas Ltd?

The Book Value of Gujarat Gas Ltd is 116.

What is the Dividend Yield of Gujarat Gas Ltd?

The Dividend Yield of Gujarat Gas Ltd is 1.16 %.

What is the ROCE of Gujarat Gas Ltd?

The ROCE of Gujarat Gas Ltd is 20.4 %.

What is the ROE of Gujarat Gas Ltd?

The ROE of Gujarat Gas Ltd is 15.0 %.

What is the Face Value of Gujarat Gas Ltd?

The Face Value of Gujarat Gas Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Gujarat Gas Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE