Gujarat Industries Power Bounces Back with Strength📈Technical Analysis
Breakout & Correction: After breaking ₹190 resistances in Jan 2024, GIPCL surged to ₹270 by June but later corrected sharply.
Strong Demand Base: ₹150 acted as a reliable bottom during the downturn, supporting a rebound into a higher-high, higher-low pattern.
Buy Trigger Zone: A breakout above ₹230–₹240 (former resistance) with bullish candlestick confirmation could unlock upward momentum toward:
🎯Target 1: ₹250
🎯Target 2: ₹260
🎯Target 3: ₹270
Support Levels:
🔻Recent higher-low stop-loss around ₹190
🔻₹150 remains the critical demand zone—below this, bullish case weakens
💰Q4 FY24 Financial Highlights (vs Q3 FY24 & Q4 FY23)
Total Income: ₹338 Cr (↑+5% vs ₹322 Cr; –9% vs ₹373 Cr)
Total Expenses: ₹219 Cr (↑+18% vs ₹196 Cr; –14% vs ₹254 Cr)
Operating Profits: ₹119 Cr (↑+34% vs ₹89 Cr; flat YoY)
Profit Before Tax: ₹86 Cr (↑+62% vs ₹53 Cr; ↑1% YoY)
Profit After Tax: ₹70 Cr (↑+79% vs ₹39 Cr; ↑6% YoY)
Diluted EPS: ₹4.49 (↑+73% vs ₹2.59; ↑2% vs ₹4.38)
📌 Sequential growth across the board—profit nearly doubled QoQ and edged higher YoY—signals improved margins and operational discipline.
🔍Fundamental Highlights
Dividend Yield ~1.9%: Company increased annual dividend to ₹4.09 per share (40.9%) for FY25
Consistent Dividend Growth: Yield rose steadily over the past decade, backed by a healthy ~29% payout ratio
Latest Q4 Net Profit: Up 5.4% QoQ to ₹70 Cr, reflecting resilience in earnings .
Strong Cash Flow & Balance Sheet: Installed capacity ~1,184 MW with healthy leverage metrics
🧭Conclusion
Gujarat Industries Power is showing promising signs—technically rebounding from ₹150 with strategic breakout levels at ₹230–₹240, and fundamental strengths in earnings growth and dividends. If the ₹230–₹240 zone is breached and confirmed, the stock could rally to ₹270.
Disclaimer: lnkd.in
