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Gujarat State Petronet

NSEI:GSPL
Snowflake Description

Solid track record established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GSPL
NSEI
₹111B
Market Cap
  1. Home
  2. IN
  3. Utilities
Company description

Gujarat State Petronet Limited transmits natural gas through pipeline on an open access basis from supply points to demand centers in India. The last earnings update was 67 days ago. More info.


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GSPL Share Price and Events
7 Day Returns
11.4%
NSEI:GSPL
-1.6%
IN Gas Utilities
-2.2%
IN Market
1 Year Returns
13.3%
NSEI:GSPL
-6.8%
IN Gas Utilities
-3.1%
IN Market
GSPL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Gujarat State Petronet (GSPL) 11.4% 13.3% 7.9% 13.3% 58.5% 128%
IN Gas Utilities -1.6% -5.2% -7.9% -6.8% 51.1% 31.3%
IN Market -2.2% -2.7% -4.1% -3.1% 22.1% 34.8%
1 Year Return vs Industry and Market
  • GSPL outperformed the Gas Utilities industry which returned -6.8% over the past year.
  • GSPL outperformed the Market in India which returned -3.1% over the past year.
Price Volatility
GSPL
Industry
5yr Volatility vs Market

Value

 Is Gujarat State Petronet undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Gujarat State Petronet to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Gujarat State Petronet.

NSEI:GSPL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.4%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:GSPL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Gas Utilities Unlevered Beta Simply Wall St/ S&P Global 0.36
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.359 (1 + (1- 35%) (30.38%))
0.618
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.8 * 8.6%)
14.43%

Discounted Cash Flow Calculation for NSEI:GSPL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Gujarat State Petronet is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:GSPL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 14.43%)
2020 8,043.22 Analyst x8 7,028.94
2021 7,801.05 Analyst x10 5,957.62
2022 7,810.70 Est @ 0.12% 5,212.79
2023 7,994.38 Est @ 2.35% 4,662.57
2024 8,307.05 Est @ 3.91% 4,233.96
2025 8,722.63 Est @ 5% 3,885.15
2026 9,225.66 Est @ 5.77% 3,591.02
2027 9,807.05 Est @ 6.3% 3,335.95
2028 10,461.80 Est @ 6.68% 3,109.91
2029 11,187.68 Est @ 6.94% 2,906.30
Present value of next 10 years cash flows ₹43,924.22
NSEI:GSPL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹11,187.68 × (1 + 7.55%) ÷ (14.43% – 7.55%)
₹174,888.81
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹174,888.81 ÷ (1 + 14.43%)10
₹45,432.13
NSEI:GSPL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹43,924.22 + ₹45,432.13
₹89,356.35
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹89,356.35 / 564.01
₹158.43
NSEI:GSPL Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹158.43
Current discount Discount to share price of ₹204.05
= -1 x (₹204.05 - ₹158.43) / ₹158.43
-28.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Gujarat State Petronet is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Gujarat State Petronet's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Gujarat State Petronet's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:GSPL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹17.71
NSEI:GSPL Share Price ** NSEI (2019-07-15) in INR ₹204.05
India Gas Utilities Industry PE Ratio Median Figure of 6 Publicly-Listed Gas Utilities Companies 20.19x
India Market PE Ratio Median Figure of 2,834 Publicly-Listed Companies 14.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Gujarat State Petronet.

NSEI:GSPL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:GSPL Share Price ÷ EPS (both in INR)

= 204.05 ÷ 17.71

11.52x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gujarat State Petronet is good value based on earnings compared to the IN Gas Utilities industry average.
  • Gujarat State Petronet is good value based on earnings compared to the India market.
Price based on expected Growth
Does Gujarat State Petronet's expected growth come at a high price?
Raw Data
NSEI:GSPL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.52x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
-8.1%per year
India Gas Utilities Industry PEG Ratio Median Figure of 5 Publicly-Listed Gas Utilities Companies 2.32x
India Market PEG Ratio Median Figure of 534 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

NSEI:GSPL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.52x ÷ -8.1%

-1.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gujarat State Petronet earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Gujarat State Petronet's assets?
Raw Data
NSEI:GSPL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹58.44
NSEI:GSPL Share Price * NSEI (2019-07-15) in INR ₹204.05
India Gas Utilities Industry PB Ratio Median Figure of 6 Publicly-Listed Gas Utilities Companies 4.2x
India Market PB Ratio Median Figure of 3,668 Publicly-Listed Companies 0.96x
NSEI:GSPL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:GSPL Share Price ÷ Book Value per Share (both in INR)

= 204.05 ÷ 58.44

3.49x

* Primary Listing of Gujarat State Petronet.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gujarat State Petronet is good value based on assets compared to the IN Gas Utilities industry average.
X
Value checks
We assess Gujarat State Petronet's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Gas Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Gas Utilities industry average (and greater than 0)? (1 check)
  5. Gujarat State Petronet has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Gujarat State Petronet expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-8.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Gujarat State Petronet expected to grow at an attractive rate?
  • Gujarat State Petronet's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Gujarat State Petronet's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
  • Gujarat State Petronet's revenues are expected to decrease over the next 1-3 years, this is below the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:GSPL Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:GSPL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts -8.1%
NSEI:GSPL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts -81.6%
India Gas Utilities Industry Earnings Growth Rate Market Cap Weighted Average 5.6%
India Gas Utilities Industry Revenue Growth Rate Market Cap Weighted Average -0.9%
India Market Earnings Growth Rate Market Cap Weighted Average 17%
India Market Revenue Growth Rate Market Cap Weighted Average 9.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:GSPL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:GSPL Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 18,695 7,337 3
2021-03-31 19,102 10,990 8,506 20
2020-03-31 18,349 10,191 7,978 20
NSEI:GSPL Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 93,451 9,986
2018-03-31 72,610 16,670 7,413
2017-03-31 59,013 16,441 5,544

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Gujarat State Petronet's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Gujarat State Petronet's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:GSPL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from Gujarat State Petronet Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:GSPL Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 13.00 13.00 13.00 1.00
2021-03-31 15.03 20.65 10.00 18.00
2020-03-31 14.07 17.98 10.80 18.00
NSEI:GSPL Past Financials Data
Date (Data in INR Millions) EPS *
2019-03-31 17.71
2018-03-31 13.15
2017-03-31 9.84

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Gujarat State Petronet is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Gujarat State Petronet's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Gujarat State Petronet has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Gujarat State Petronet performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Gujarat State Petronet's growth in the last year to its industry (Gas Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Gujarat State Petronet's year on year earnings growth rate has been positive over the past 5 years.
  • Gujarat State Petronet's 1-year earnings growth exceeds its 5-year average (34.7% vs 17.6%)
  • Gujarat State Petronet's earnings growth has not exceeded the IN Gas Utilities industry average in the past year (34.7% vs 35.6%).
Earnings and Revenue History
Gujarat State Petronet's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Gujarat State Petronet Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:GSPL Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 93,451.21 9,986.03 2,245.29
2018-03-31 72,610.47 7,413.07 3,630.89
2017-03-31 59,012.93 5,544.17 3,213.69
2016-03-31 9,919.26 4,652.34 565.90
2015-03-31 10,645.97 4,863.06 624.42
2014-03-31 10,506.92 4,157.88 529.63
2013-03-31 11,732.01 5,378.66 489.29

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Gujarat State Petronet has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Gujarat State Petronet used its assets more efficiently than the IN Gas Utilities industry average last year based on Return on Assets.
  • Gujarat State Petronet has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Gujarat State Petronet's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Gas Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Gujarat State Petronet has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Gujarat State Petronet's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Gujarat State Petronet's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Gujarat State Petronet's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Gujarat State Petronet's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Gujarat State Petronet's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Gujarat State Petronet Company Filings, last reported 3 months ago.

NSEI:GSPL Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 43,059.91 33,747.13 5,624.50
2018-03-31 32,838.54 53,860.44 2,130.10
2017-03-31 57,606.45 29,894.07 8,411.90
2016-03-31 39,864.40 10,669.97 5,485.87
2015-03-31 39,405.69 11,574.92 4,669.44
2014-03-31 35,087.14 14,288.16 5,444.39
2013-03-31 30,871.26 16,096.64 8,922.93
  • Gujarat State Petronet's level of debt (78.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (40.7% vs 78.4% today).
  • Debt is well covered by operating cash flow (49.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.9x coverage).
X
Financial health checks
We assess Gujarat State Petronet's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Gujarat State Petronet has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Gujarat State Petronet's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.98%
Current annual income from Gujarat State Petronet dividends. Estimated to be 1.19% next year.
If you bought ₹2,000 of Gujarat State Petronet shares you are expected to receive ₹20 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Gujarat State Petronet's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.56%).
  • Gujarat State Petronet's dividend is below the markets top 25% of dividend payers in India (2.17%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:GSPL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
India Gas Utilities Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 1.7%
India Market Average Dividend Yield Market Cap Weighted Average of 1447 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.6%
India Top 25% Dividend Yield 75th Percentile 2.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:GSPL Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 2.70 2.00
2021-03-31 2.58 18.00
2020-03-31 2.25 18.00
NSEI:GSPL Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-05-09 2.000 1.064
2018-08-31 1.750 0.989
2018-05-21 1.750 0.945
2017-08-29 1.500 0.754
2017-06-05 1.500 0.848
2017-05-25 1.500 0.863
2016-08-29 1.500 0.958
2016-05-19 1.500 1.107
2015-08-28 1.200 0.920
2015-05-22 1.200 0.979
2014-08-28 1.000 0.922
2014-05-22 1.000 1.184
2013-09-02 1.000 1.675
2013-05-30 1.000 1.841
2012-09-25 1.000 1.405
2011-09-23 1.000 1.297
2010-09-22 1.000 0.966
2009-12-03 0.750 0.770

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Gujarat State Petronet's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (8.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (6.5x coverage).
X
Income/ dividend checks
We assess Gujarat State Petronet's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Gujarat State Petronet afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Gujarat State Petronet has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Gujarat State Petronet's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jagdip Singh
COMPENSATION ₹97,500
AGE 60
TENURE AS CEO 3.3 years
CEO Bio

Dr. Jagdip Narayan Singh, IAS has been Managing Director at Gujarat State Petroleum Corporation Limited since August 01, 2016. Dr. Singh has been a Managing Director of Gujarat State Petronet Limited since April 21, 2016. Dr. Singh serves as Additional Chief Secretary of Finance Department and Additional Chief Secretary to Government, General Administration Department (Personnel), Government of Gujarat. Dr. Singh has a wide and varied experience in various Departments of Government of Gujarat and Government of India. He served as Joint Managing Director of Gujarat Industrial Development Corporation. He served as Managing Director of Sardar Sarovar Narmada Nigam Ltd. He served as Head of Finance at National Highways Authority Of India (NHAI). He served as Director of Marketing at Gujarat Alkalies and Chemicals Limited from April 22, 1995 to September 1, 1995. He served in very senior capacities in Gujarat Industries Power Company Ltd and in Gujarat Electricity Board. He served largely in Infrastructure & Finance Sectors, having Industrial Infrastructure, Power, Telecom, information Technology, Highways, Water etc. Dr. Singh has been the Chairman of Gujarat State Petroleum Corporation Limited since August 01, 2016. He has been the Chairman of Gujarat Alkalies and Chemicals Limited since August 31, 2016. He has been the Chairman of Gujarat Gas Limited since August 11, 2016. He has been Chairman of Gujarat State Fertilizers & Chemicals Ltd. since August 31, 2016. He has been the Chairman of the Board of Gujarat Narmada Valley Fertilizers & Chemicals Limited since August 31, 2016 and as its Non-Executive Director since January 30, 2015. He serves as Director of Sardar Sarovar Narmada Nigam Ltd. He has been a Director of Gujarat Alkalies and Chemicals Ltd since February 5, 2015, Gujarat State Fertilizers & Chemicals Ltd. since November 25, 2014 and Gujarat Gas Limited since April 25, 2016. He has been a Director of Gujarat State Petronet Limited since November 24, 2014. He has been a Director of Gujarat State Petroleum Corporation Limited since November 12, 2014. He served as a Director at National Highways Authority Of India from February 01, 2010 to March 31, 2013. He served as a Director of The Cotton Corporation Of India Limited. Dr. Singh is an IAS Officer from the 1983 Batch and has a rich and varied educational background. Dr. Singh has a Masters in International Studies from Jawaharlal Nehru University, Delhi, a Management Masters from the Asian Institute of Management, Manila, Philippines and a Ph. D in Political Economy from the M.S. University, Vadodara.

CEO Compensation
  • Jagdip's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jagdip's remuneration is lower than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Gujarat State Petronet management team in years:

3.3
Average Tenure
50.5
Average Age
  • The tenure for the Gujarat State Petronet management team is about average.
Management Team

Jagdip Singh

TITLE
MD & Director
COMPENSATION
₹98K
AGE
60
TENURE
3.3 yrs

T. Natarajan

TITLE
Joint MD & Director
AGE
48
TENURE
2.9 yrs

Ajith T. Kumar

TITLE
Chief Financial Officer
AGE
53
TENURE
0.4 yrs

Nallapaneni Babu

TITLE
General Manager of Technical Service & Operation and Maintenance

Vinay Kumar

TITLE
Group Senior Executive Director of Human Resources
AGE
58

Sandeep Dave

TITLE
Deputy General Manager of Secretarial & Legal
AGE
44

Reena Desai

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹1M
TENURE
10.6 yrs

Pramod Yenge

TITLE
Executive

Rajesh Suhane

TITLE
Executive

Ravindra Agrawal

TITLE
Executive Director of Gas Business
AGE
47
TENURE
19.8 yrs
Board of Directors Tenure

Average tenure and age of the Gujarat State Petronet board of directors in years:

4.2
Average Tenure
60
Average Age
  • The tenure for the Gujarat State Petronet board of directors is about average.
Board of Directors

Manmohan Srivastava

TITLE
Chairman
AGE
67
TENURE
6.9 yrs

Jagdip Singh

TITLE
MD & Director
COMPENSATION
₹98K
AGE
60
TENURE
4.7 yrs

T. Natarajan

TITLE
Joint MD & Director
AGE
48
TENURE
2.9 yrs

R. Vaidyanathan

TITLE
Independent Director
COMPENSATION
₹90K
AGE
67
TENURE
9.3 yrs

Yogesh Singh

TITLE
Independent Director
COMPENSATION
₹53K
TENURE
6.2 yrs

Bakul Dholakia

TITLE
Independent Director
COMPENSATION
₹105K
AGE
72
TENURE
4.8 yrs

Shridevi Shukla

TITLE
Additional Independent Director
COMPENSATION
₹45K
AGE
67
TENURE
0.3 yrs

Sudhir Jain

TITLE
Additional Independent Director
COMPENSATION
₹60K
AGE
60
TENURE
3.8 yrs

Bhadresh Mehta

TITLE
Additional Independent Director
COMPENSATION
₹53K
AGE
59
TENURE
3.8 yrs

Bimal Patel

TITLE
Additional Independent Director
COMPENSATION
₹15K
AGE
49
TENURE
2.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
30. Mar 19 Sell Nallapaneni Babu Individual 29. Mar 19 29. Mar 19 -12,500 ₹185.00 ₹-2,312,499
X
Management checks
We assess Gujarat State Petronet's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Gujarat State Petronet has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Gujarat State Petronet Limited's (NSE:GSPL) P/E Ratio Really That Good?

We'll apply a basic P/E ratio analysis to Gujarat State Petronet Limited's (NSE:GSPL), to help you decide if the stock is worth further research. … Check out our latest analysis for Gujarat State Petronet How Do I Calculate Gujarat State Petronet's Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Gujarat State Petronet: P/E of 11.08 = ₹196.3 ÷ ₹17.71 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

Brief Commentary On Gujarat State Petronet Limited's (NSE:GSPL) Fundamentals

I've been keeping an eye on Gujarat State Petronet Limited (NSE:GSPL) because I'm attracted to its fundamentals. … NSEI:GSPL Income Statement, June 24th 2019 GSPL is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy. … NSEI:GSPL Historical Dividend Yield, June 24th 2019 Next Steps: For Gujarat State Petronet, I've compiled three key factors you should further examine: Future Outlook: What are well-informed industry analysts predicting for GSPL’s future growth?

Simply Wall St -

Where Gujarat State Petronet Limited (NSE:GSPL) Stands In Terms Of Earnings Growth Against Its Industry

Analyzing Gujarat State Petronet Limited's (NSE:GSPL) track record of past performance is a valuable exercise for investors. … However, its return on assets (ROA) of 11% is below the IN Gas Utilities industry of 13%, indicating Gujarat State Petronet's are utilized less efficiently. … I suggest you continue to research Gujarat State Petronet to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for GSPL’s future growth?

Simply Wall St -

Are Gujarat State Petronet Limited (NSE:GSPL) Investors Paying Above The Intrinsic Value?

In this article we are going to estimate the intrinsic value of Gujarat State Petronet Limited (NSE:GSPL) by taking the expected future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (₹, Millions) ₹8.73k ₹7.75k ₹7.63k ₹7.71k ₹7.95k ₹8.30k ₹8.74k ₹9.27k ₹9.87k ₹10.54k Growth Rate Estimate Source Analyst x7 Analyst x8 Analyst x10 Est @ 1.14% Est @ 3.06% Est @ 4.41% Est @ 5.35% Est @ 6.01% Est @ 6.47% Est @ 6.8% Present Value (₹, Millions) Discounted @ 14.43% ₹7.63k ₹5.92k ₹5.09k ₹4.50k ₹4.05k ₹3.70k ₹3.40k ₹3.15k ₹2.93k ₹2.74k Present Value of 10-year Cash Flow (PVCF)= ₹43.11b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = ₹11b × (1 + 7.6%) ÷ (14.4% – 7.6%) = ₹165b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = ₹₹165b ÷ ( 1 + 14.4%)10 = ₹42.81b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is ₹85.92b.

Simply Wall St -

Who Has Been Selling Gujarat State Petronet Limited (NSE:GSPL) Shares?

So before you buy or sell Gujarat State Petronet Limited (NSE:GSPL), you may well want to know whether insiders have been buying or selling. … Check out our latest analysis for Gujarat State Petronet … Gujarat State Petronet Insider Transactions Over The Last Year

Simply Wall St -

Does Gujarat State Petronet (NSE:GSPL) Deserve A Spot On Your Watchlist?

So if you're like me, you might be more interested in profitable, growing companies, like Gujarat State Petronet (NSE:GSPL). … See our latest analysis for Gujarat State Petronet? … How Fast Is Gujarat State Petronet Growing.

Simply Wall St -

What We Think Of Gujarat State Petronet Limited’s (NSE:GSPL) Investment Potential

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Investors Are Undervaluing Gujarat State Petronet Limited (NSE:GSPL) By 36.54%

In this article I am going to calculate the intrinsic value of Gujarat State Petronet Limited (NSE:GSPL). … by taking the expected future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

Why Gujarat State Petronet Limited (NSE:GSPL) Is An Attractive Investment To Consider

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Gujarat State Petronet Limited (NSE:GSPL) due to its excellent fundamentals in more than one area.

Simply Wall St -

Does Gujarat State Petronet Limited's (NSE:GSPL) P/E Ratio Signal A Buying Opportunity?

To keep it practical, we'll show how Gujarat State Petronet Limited's (NSE:GSPL) P/E ratio could help you assess the value on offer. … Gujarat State Petronet has a P/E ratio of 12.96, based on the last twelve months. … How Do You Calculate Gujarat State Petronet's P/E Ratio

Simply Wall St -

Company Info

Description

Gujarat State Petronet Limited transmits natural gas through pipeline on an open access basis from supply points to demand centers in India. The company develops energy transportation infrastructure and connects natural gas supply sources, including LNG terminals to various markets in Gujarat. As of September 30, 2016, it operated approximately 2600 kilometers of pipeline network. The company transports approximately 32 MMSCMD of natural gas to refineries, steel plants, fertilizer plants, petrochemical plants, power plants, glass industries, and other miscellaneous industries, as well as to textile, chemical, and city gas distribution companies. It also generates and sells electricity through windmills. The company was founded in 1998 and is based in Gandhinagar, India.

Details
Name: Gujarat State Petronet Limited
GSPL
Exchange: NSEI
Founded: 1998
₹111,082,681,181
564,014,629
Website: http://www.gspcgroup.com/GSPL/
Address: Gujarat State Petronet Limited
GSPL Bhavan,
E-18, GIDC Electronic Estate,
Gandhinagar,
Gujarat, 382028,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI GSPL Equity Shares National Stock Exchange of India IN INR 16. Feb 2006
BSE 532702 Equity Shares Mumbai Stock Exchange IN INR 16. Feb 2006
Number of employees
Current staff
Staff numbers
0
Gujarat State Petronet employees.
Industry
Gas Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 12:55
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/07/11
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.