Gujarat Industries Power Co. Ltd. (GIPCL) AI Stock Analysis

• Market Cap: ₹20.28B
• Dividend Yield: 2.6%
• Average Volume (3M): 24.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: 2.34%
• EPS Growth: -14.58%
• Country: IN
• Employees: 416
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): -0.21
• Shares Outstanding: 155,215,940
• 10 Day Avg. Volume: 18,420
• 30 Day Avg. Volume: 24,412
• PEG Ratio: 2.00
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 2.19
• P/FCF Ratio: -1.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹147.00 ▼(-9.57% Downside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is primarily supported by solid financial positioning (strong balance sheet and stable margins), but is held back by negative free cash flow from high capex and weak technicals, with the stock trading below major moving averages and showing soft momentum. Reasonable valuation and a ~2.9% dividend yield provide partial support.

Positive Factors

Strong balance sheet

A healthy equity ratio and reasonable debt-to-equity provide financial resilience for a capital‑intensive power operator. This strengthens the company’s ability to absorb demand or price shocks, access financing for projects, and sustain operations without immediate distress over the next several quarters.

Stable profit margins

Consistent gross and net margins and resilient EBIT/EBITDA indicate operational efficiency in generation and cost control. For a regulated/contracted power business, durable margins support predictable cash generation and the capacity to cover fixed costs and service capital needs over the medium term.

Good operating cash conversion

Meaningful growth in operating cash flow and strong conversion versus net income show the core generation business produces cash. That cashability supports debt service, maintenance capex, and working capital needs—important in a capital-heavy sector even if investment spending remains high.

Negative Factors

Negative free cash flow from capex

Persistent negative free cash flow driven by elevated capex reduces financial flexibility. Over months, this can require external financing or divert cash from dividends and maintenance, increasing refinancing and execution risk for new projects in a sector with long lead times and regulatory constraints.

Volatile revenue with recent decline

Revenue volatility and a recent decline weaken predictability of contracted and merchant receipts. For power producers, sustained revenue swings can pressure coverage ratios, complicate tariff negotiations or off-taker relations, and force tighter cost control or lower utilization to protect margins.

Earnings contraction

A sharp year-over-year EPS decline signals strain on profitability that can reflect lower volumes, higher costs, or non-recurring charges. Continued earnings contraction erodes retained earnings, limits reinvestment capacity, and may necessitate operational or financing changes to restore long‑term earnings power.

Gujarat Industries Power Co. Ltd. Business Overview & Revenue Model

Company Description

Gujarat Industries Power Company Limited generates and sells electricity primarily to power purchasing companies in India. The company generates power through gas, lignite, wind, and solar power plants with combined installed capacity of 1184.4 MW at Vadodara plant and Surat Lignite Power Plant. Gujarat Industries Power Company Limited was incorporated in 1985 and is based in Vadodara, India.

How the Company Makes Money

GIPCL generates revenue primarily through the sale of electricity produced at its power plants. The company operates several coal-based thermal power stations and solar power projects, which provide a diversified energy portfolio. Revenue streams include long-term power purchase agreements (PPAs) with state utilities and private players, which ensure a steady income from electricity sales. Additionally, GIPCL may benefit from incentives related to renewable energy generation and carbon credits. Partnerships with various governmental and private entities for power supply further enhance its revenue potential. The company's strategic emphasis on efficiency and expansion into new energy sectors also plays a critical role in its overall earnings.

Gujarat Industries Power Co. Ltd. Financial Statement Overview

Summary

Financial statements indicate stable profitability and operational efficiency (Income Statement score 65) supported by a strong balance sheet (Balance Sheet score 70). However, revenue has fluctuated and free cash flow is negative due to high capital expenditures (Cash Flow score 60), which tempers the overall financial strength.

Income Statement

The company shows a stable gross profit margin with consistent net profit margins over the years. However, revenue has fluctuated, with a decline in the most recent period. EBIT and EBITDA margins have shown resilience, indicating operational efficiency.

Balance Sheet

The balance sheet is strong, with a reasonable debt-to-equity ratio and a solid equity base. The equity ratio is healthy, reflecting a robust financial position. However, the rise in total debt in the latest period requires monitoring.

Cash Flow

Operating cash flow has shown significant growth, but free cash flow has turned negative due to high capital expenditures. The operating cash flow to net income ratio is favorable, indicating good cash conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.53B	12.56B	13.49B	13.56B	11.67B	13.33B
Gross Profit	5.92B	5.65B	2.57B	5.45B	5.36B	5.60B
EBITDA	5.00B	4.75B	4.57B	4.55B	4.26B	4.54B
Net Income	1.88B	2.11B	1.99B	1.89B	1.71B	1.80B
Balance Sheet
Total Assets	85.80B	75.66B	52.18B	44.87B	44.03B	41.29B
Cash, Cash Equivalents and Short-Term Investments	2.64B	4.94B	6.09B	4.54B	2.82B	2.85B
Total Debt	28.03B	20.27B	6.14B	4.93B	5.29B	4.80B
Total Liabilities	50.44B	40.42B	19.13B	13.33B	13.59B	12.74B
Stockholders Equity	35.36B	35.24B	33.06B	31.54B	30.44B	28.55B
Cash Flow
Free Cash Flow	-8.80B	-15.80B	982.01M	2.83B	186.99M	-466.81M
Operating Cash Flow	3.09B	11.27B	5.62B	4.10B	3.62B	1.93B
Investing Cash Flow	-12.26B	-26.65B	-2.17B	-1.28B	-3.40B	-2.31B
Financing Cash Flow	6.82B	13.97B	-1.90B	-1.10B	-245.30M	-473.63M

Gujarat Industries Power Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 162.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GIPCL, the sentiment is Negative. The current price of 162.55 is above the 20-day moving average (MA) of 137.81, above the 50-day MA of 143.31, and below the 200-day MA of 173.81, indicating a bearish trend. The MACD of -3.15 indicates Positive momentum. The RSI at 39.61 is Neutral, neither overbought nor oversold. The STOCH value of 27.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:GIPCL.

Gujarat Industries Power Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TORNTPOWER	75 Outperform	₹726.78B	25.60	―	1.48%	-1.26%	27.83%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
TATAPOWER	65 Neutral	₹1.25T	39.28	―	0.59%	4.06%	8.22%
RELINFRA	60 Neutral	₹33.25B	152.35	―	―	-10.55%	-5.08%
GIPCL	58 Neutral	₹20.28B	-189.78	―	2.60%	2.34%	-14.58%
BFUTILITIE	54 Neutral	₹15.59B	15.03	―	―	-5.83%	-4.00%
DPSCLTD	49 Neutral	₹7.71B	132.32	―	0.50%	4.29%	-57.25%

Gujarat Industries Power Co. Ltd. Corporate Events

GIPCL Announces Resignation of Nominee Director Avantika Singh Aulakh

Gujarat Industries Power Company Limited announced that Avantika Singh Aulakh, IAS, has resigned from its Board of Directors with effect from 29 December 2025, where she served as a nominee director of Gujarat Alkalies & Chemicals Limited. Her cessation as director, disclosed in compliance with SEBI’s listing regulations, signals a change in the company’s board composition and may precede the nomination of a new representative from Gujarat Alkalies & Chemicals, potentially affecting how the interests of that strategic stakeholder are represented at GIPCL’s board level.