One of the power stocks engaged in the business of electrical power generation with a present installed generation capacity of 1184.40 MW. The stock has jumped 1.76% after receiving an EPC order for a 500 MW solar PV project in Khavda and approval of debt arrangement for term loans for solar projects at Vastan and Khavda.
Stock Movements:
In Wednesday’s trading session, Gujarat Industries Power Company Limited‘s share jumped to an intraday high of 1.76 percent from the previous close of Rs. 258.80. The stock opened at Rs. 259.05 and is currently trading at Rs. 257.85, with a high of Rs. 263.35 and a low of Rs. 254.40. The market capitalization now stands at approximately Rs. 3,887.16 crore.
What Happened:
Gujarat Industries Power Company Limited (GIPCL) Board awarded an EPC contract for the Balance of System (BoS) package for implementing a 500 MW solar PV project in Khavda, Great Rann of Kutch area, Gujarat.
Additionally, it approved debt arrangement for term loans for a 500 MW solar power project (Phase-II) at Khavda and a 75 MW solar project at Vastan.
Future Growth Plans
The company is developing a 2375 MW renewable energy park at Khavda, part of the larger 30 GW project in the Great Rann of Kutch, with major infrastructure works underway. The 75 MW solar power project at Vastan, near Surat, is under construction for the captive needs of its promoters, with the EPC contract awarded and work initiated.
Additionally, the company is progressing with two significant solar projects in Khavda: a 600 MW solar power project, which received a Letter of Intent from Gujarat Urja Vikas Nigam Limited (GUVNL), and a 500 MW solar PV project, for which the Power Purchase Agreement (PPA) has been signed.
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Recent quarter results:
Gujarat Industries Power Company Limited’s revenue has decreased from Rs. 280 crore in Q2 FY24 to Rs. 276 crore in Q2 FY25, which has down by 1.43 percent. The net profit of Gujarat Industries Power Company Limited has grown by 25 percent, from Rs. 28 crore in Q2 FY24 to Rs. 35 crore in Q2 FY25.
Financial Ratio:
Gujarat Industries Power Company Limited’s revenue and net profit have grown at a CAGR of 0.35 percent and 3.40 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE should be 7.66 percent and 6.15 percent, respectively. The debt-to-equity ratio of the company is to be 0.21x, which shows the company is almost debt-free. Gujarat Industries Power Company Limited’s EPS is to be Rs. 14.2.
Company Overview:
Gujarat Industries Power Company Limited (GIPCL) was established in 1985 as a public limited company under the Government of Gujarat’s initiatives. The company is listed on BSE and NSE and is promoted by prominent Gujarat PSUs such as GSFC, GACL, and GUVNL.
The company focuses on electrical power generation, with a current installed capacity of 1184.40 MW. Its diversified portfolio includes thermal (gas and lignite), wind, and solar power plants across Gujarat. GIPCL aims to strengthen its position as a leading national power sector enterprise.
Written By – Nikhil Naik
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