Small cap electrical generation stock jumps around 2 percent after executing a power purchase agreement with one of the promoters Gujarat Urja Vikas Nigam. In the duration of 6 months, the stock has given around 70 percent returns to its investors.
With a market capitalization of Rs. 2,308 cr, the shares of Gujarat Industries Power Company Ltd started their Tuesday trading at Rs. 155. During the trading session, the stock hit a high of Rs. 157 making a gain of around 2 percent, and closed the session at Rs. 154 apiece.
Such a positive movement in the stock was observed after the company in an exchange filing informed that it had executed a Power Purchase Agreement with Gujarat Urja Vikas Nigam for the procurement of 500MW Power under Bilateral mode from a Solar PV project to be set up in RE Park at Khavda.
Digging into the financial statements of the company, the revenue decreased from Rs. 422.13 cr during Q4 FY23 to 342.21 cr in Q1 FY24. In addition to this net profit declined from Rs. 65.11 cr to Rs. 57.37 cr during the same timeframe.
Looking at the important ratios, the return on equity marginally increased from 5.81 percent in FY21-22 to 6.09 percent during FY22-23. Furthermore, the return on capital employed increased from 8.01 percent to 8.08 percent during the same time period. And debt to equity ratio of the company decreased from 0.17 times to 0.15 times keeping the same time period.
According to the latest shareholding pattern, the Promoters of the company have a 55.69 percent stake, the Public or the Retail Investors have 26.80 percent holdings, FIIs have 3.88 percent shares and the remaining 13.63 percent of shares are with DIIs.
Gujarat Industries Power Company Limited (GIPCL) was incorporated in 1985 as a Public Limited company under the auspices of the Government of Gujarat (GoG). The company is engaged in the business of Electrical Power Generation with a present installed generation capacity of 1184.4 MW.
Written by Vaibhav Patil
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