GVK Power & Infrastructure Limited

NSEI:GVKPIL Stock Report

Market Cap: ₹8.2b

GVK Power & Infrastructure Valuation

Is GVKPIL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GVKPIL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GVKPIL (₹5.11) is trading below our estimate of fair value (₹16.19)

Significantly Below Fair Value: GVKPIL is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GVKPIL?

Key metric: As GVKPIL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GVKPIL. This is calculated by dividing GVKPIL's market cap by their current earnings.
What is GVKPIL's PE Ratio?
PE Ratio1.5x
Earnings₹5.51b
Market Cap₹8.23b

Price to Earnings Ratio vs Peers

How does GVKPIL's PE Ratio compare to its peers?

The above table shows the PE ratio for GVKPIL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.1x
GIPCL Gujarat Industries Power
12.9xn/a₹28.4b
PTC PTC India
10.2xn/a₹50.1b
533122 RattanIndia Power
0.7xn/a₹69.7b
JPPOWER Jaiprakash Power Ventures
8.7xn/a₹114.2b
GVKPIL GVK Power & Infrastructure
1.5xn/a₹8.2b

Price-To-Earnings vs Peers: GVKPIL is good value based on its Price-To-Earnings Ratio (1.5x) compared to the peer average (8.1x).

Price to Earnings Ratio vs Industry

How does GVKPIL's PE Ratio compare vs other companies in the IN Renewable Energy Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.27.0x25.3%
GVKPIL GVK Power & Infrastructure
 1.5xn/aUS$97.44m
533122 RattanIndia Power
0.7xn/aUS$825.50m
No more companies available in this PE range
GVKPIL 1.5xIndustry Avg. 27.0xNo. of Companies3PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
Industry Avg.27.0x25.3%
GVKPIL GVK Power & Infrastructure
 1.5xn/aUS$97.44m
No more companies

Price-To-Earnings vs Industry: GVKPIL is good value based on its Price-To-Earnings Ratio (1.5x) compared to the Indian Renewable Energy industry average (27x).

Price to Earnings Ratio vs Fair Ratio

What is GVKPIL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GVKPIL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio1.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate GVKPIL's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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