Current Stock Overview

• Current Price (May 29, 2025): ₹68.80
• Day’s Range: ₹61.22 – ₹71.40
• 52-Week Range: ₹48.70 – ₹125.69
• Market Cap: ₹668.22 crore
• P/E Ratio: -8.60 (Negative due to losses)
• P/B Ratio: 0.26
• Book Value: ₹230.54
• Dividend Yield: 0.00%
• Beta: 0.91 (Low volatility)
• Face Value: ₹1.00
• VWAP: ₹67.62
• Volume: 914,904 shares
• Previous Close: ₹60.83
• Opening Price: ₹61.22
• Today’s High/Low: ₹71.40 / ₹61.22
• 52-Week High/Low: ₹125.69 / ₹48.70
• All-Time High/Low: ₹1,144.00 / ₹2.93
• Dividend Yield: 0.00%

Technical Analysis (4H Time Frame)

• Supertrend Indicator (35, 6): The stock is currently trading above the Supertrend line, indicating a bullish trend. A sustained move above this level could signal a continuation of the uptrend.
• Support Levels: ₹61.22 (recent low), ₹48.70 (52-week low).
• Resistance Levels: ₹71.40 (today’s high), ₹125.69 (52-week high).
• Volume Analysis: Today’s volume is significantly higher than the 20-day average, suggesting increased investor interest and potential for further price movement.

Fundamental Analysis

• Revenue (FY 2024): ₹22.54 crore
• Net Loss (FY 2024): ₹7.57 crore
• EPS (TTM): -₹7.08
• ROE: -3.20%
• ROCE: -0.31%
• Debt to Equity: 0.00% (Debt-free)
• Employees: 4 (indicating a lean operational structure)

Business Segments:

• Entertainment: Operates multiplexes and cinema theatres under the INOX brand.
• Investment Activities: Engaged in distribution of investment products and holds strategic investments.
• Real Estate: Involved in property development activities.

Recent Developments:

• Subsidiary Expansion: GFCL EV Products, a wholly-owned subsidiary, incorporated a German subsidiary, GFCL EV Products GmbH, in September 2024, marking the company’s foray into the European market .

Pros

• Undervaluation: The low P/B ratio of 0.26 suggests the stock is trading below its book value, potentially indicating undervaluation.
• Debt-Free Status: The company has no debt, reducing financial risk.
• Recent Profitability: The incorporation of a German subsidiary indicates potential for future growth and diversification.
• Low Volatility: The beta of 0.91 suggests the stock is less volatile compared to the broader market.

Cons

• Negative Earnings: The company reported a net loss of ₹7.57 crore in FY 2024, with a negative EPS of -₹7.08.
• Low Liquidity: The average trading volume is relatively low, which could lead to high volatility.
• Sector Risks: Operating in the entertainment and investment sectors exposes the company to cyclical demand and regulatory risks.

Investment Outlook

Short-Term (0–6 Months)

• Technical Indicators: The stock is currently above the Supertrend line, indicating a bullish short-term trend.
• Actionable Strategy: Consider entering a long position if the stock maintains its position above the Supertrend line, with a target price near the 52-week high of ₹125.69. Set a stop-loss just below the Supertrend line to manage risk.

Long-Term (1–3 Years)

• Fundamental Considerations: The company’s negative earnings and low liquidity are concerns. However, the debt-free status and recent expansion into the European market through its subsidiary could provide growth opportunities.
• Actionable Strategy: Monitor the company’s quarterly earnings reports for signs of profitability. If the company returns to profitability and demonstrates growth, consider initiating a long-term position.

More In-Depth

Technical Analysis on 4H Time Frame

• Current Price: ₹68.80 (as of 29th May 2025)
• Supertrend (35, 6) Indicator:
  • Currently, the price is trading above the Supertrend line, indicating a short-term bullish trend.
  • If price crosses below this Supertrend line, that would signal a bearish reversal, and a short-term exit could be considered.
• Price Action:
  • The stock had a recent pullback from a low near ₹61.22 and bounced back strongly above ₹68.
  • Key resistance zones: ₹71.40 (today’s high), and the significant resistance at ₹125.69 (52-week high).
  • Key support zones: ₹61.22 (today’s low), ₹60 and below ₹50, which acted as strong floors earlier.
• Volume:
  • Recent trading volume has increased, suggesting more participation which can support a continuation of the current trend.
• Momentum:
  • RSI on 4H is moderate (~60), not overbought, so there’s room to move higher.
• Moving Averages:
  • 50-period and 100-period moving averages on 4H chart are beginning to slope upwards, supporting a medium-term bullish case.

Fundamental Analysis

• Business Model:
  • GFL Limited has diversified businesses — primarily in entertainment (multiplex cinema), investment distribution, and real estate.
  • The company is expanding internationally, notably via its German subsidiary in EV products, signaling strategic growth ambitions.
• Financial Highlights:
  • Revenue (FY24): ₹22.54 crore (relatively low for a listed company, showing room for growth)
  • Net Loss (FY24): ₹7.57 crore, reflecting continuing operational challenges or investments for expansion.
  • EPS (TTM): -₹7.08 — negative earnings, so not profitable yet on a trailing twelve months basis.
  • Book Value: ₹230.54 per share, price trading at ₹68.80 means the stock is trading well below book value (P/B ~ 0.26), potentially undervalued.
  • Debt: Zero debt, which reduces financial risk and interest burden.
  • Cash Flow: Operating cash flow has been weak, needing monitoring as the company invests in new ventures.
• Market Capitalization: ₹668.22 crore (small-mid cap) — may have growth potential but higher volatility and risk.

Earnings and Outlook

• The company had losses for most of FY24 but showed signs of recovery with a small profit in Q3 FY24.
• Incorporation of subsidiaries in the EV space (Germany) and ongoing investments in entertainment could improve revenue streams, but profitability remains a challenge.
• Earnings risks: volatility, sector-specific challenges, and global macroeconomic factors impacting discretionary spending (cinemas) and real estate.
• Future Growth Drivers:
  • Expansion into the EV market through the German subsidiary, potentially opening new revenue streams.
  • Reviving entertainment business post-pandemic could increase revenues if footfalls improve.
  • Real estate development success depends on regulatory and economic environment.

Pros and Cons

Pros:

• Low valuation: Trading at ~0.26 P/B ratio indicates undervaluation relative to net asset value.
• Debt-free: No leverage reduces bankruptcy risk.
• Strategic Expansion: Entry into European EV market could be a significant growth driver.
• Technical Bullishness: Trading above Supertrend on 4H, potential near-term upside.
• Stable Volatility: Beta under 1 indicates less price volatility than broader market.

Cons:

• Loss-making: Negative EPS and net losses reflect ongoing operational challenges.
• Low Liquidity: Average volumes are low, meaning higher price volatility and difficulty entering/exiting positions.
• Sector Risks: Entertainment and real estate are cyclical; susceptible to economic downturns.
• Limited Diversification: Heavy reliance on a few segments limits revenue stability.
• Execution Risks: International expansion brings uncertainties — regulatory, operational, currency.

Investment Strategy

Short-Term (Next 3–6 Months):

• Entry: Buy on a confirmed breakout above recent resistance of ₹71.40, while maintaining a stop loss slightly below the Supertrend line (around ₹64–65).
• Target: Look for near-term price targets around ₹80–90 (psychological levels) and then a test of the 52-week high of ₹125.
• Exit: If price closes below the Supertrend (35,6) on 4H or volume dries up significantly, consider exiting.

Long-Term (1–3 Years):

• Consider accumulating on dips under ₹60 if fundamentals improve (especially earnings turning positive).
• Monitor quarterly earnings for revenue growth and reduction in losses.
• Keep an eye on progress from the EV subsidiary and overall business diversification.
• Long-term upside potential exists if the company successfully executes its international and domestic expansion plans, but risk remains moderate to high due to current financials.

Summary Table

Conclusion

GFL Limited presents a mixed investment case. While the stock shows bullish technical indicators and the company has a debt-free status with recent expansion into the European market, the negative earnings and low liquidity pose risks. Investors should approach with caution, focusing on technical indicators for short-term decisions and monitoring fundamental improvements for long-term investments.