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Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
Gujarat Mineral Development's Degree of Financial Leverage for the quarter that ended in Jun. 2026 was 0.93. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Gujarat Mineral Development's Degree of Financial Leverage or its related term are showing as below:
NSE:GMDCLTD's Degree of Financial Leverage is ranked better than 57.23% of 173
companies
in the Other Energy Sources industry
Industry Median: 1.05
vs NSE:GMDCLTD: 0.93
Gujarat Mineral Development (NSE:GMDCLTD) Degree of Financial Leverage Explanation
Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.
The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.
Be Aware
The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.
Gujarat Mineral Development Degree of Financial Leverage Related Terms
Gujarat Mineral Development Degree of Financial Leverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Gujarat Mineral Development Degree of Financial Leverage Chart
Gujarat Mineral Development Degree of Financial Leverage Competitor Comparison
For the Thermal Coal subindustry, Gujarat Mineral Development's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Gujarat Mineral Development Degree of Financial Leverage vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Gujarat Mineral Development's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Gujarat Mineral Development's Degree of Financial Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Financial Leverage of 0.93 mean?
Gujarat Mineral Development (NSE:GMDCLTD) has a Degree of Financial Leverage of 0.93 as of Jun. 2026. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Gujarat Mineral Development and its competitors. According to the industry distribution chart, Gujarat Mineral Development ranks #74 out of 173 companies in the Other Energy Sources industry, placing it in the top 42.8%.
Is Gujarat Mineral Development's Degree of Financial Leverage too high?
Gujarat Mineral Development's current Degree of Financial Leverage is 0.93. The Other Energy Sources industry median Degree of Financial Leverage is 1.05. Gujarat Mineral Development's value of 0.93 is 11.4% below this industry median. Based on the distribution chart, Gujarat Mineral Development ranks #74 out of 173 companies in the Other Energy Sources industry, which is above the industry midpoint. Overall, Gujarat Mineral Development has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Gujarat Mineral Development's Degree of Financial Leverage compare to competitors?
According to the Other Energy Sources industry distribution chart, Gujarat Mineral Development ranks #74 out of 173 companies for Degree of Financial Leverage. This puts Gujarat Mineral Development in the upper half of its industry. The industry median Degree of Financial Leverage is 1.05. Gujarat Mineral Development's value of 0.93 is 11.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Financial Leverage for an Other Energy Sources company?
The median Degree of Financial Leverage among Other Energy Sources companies is 1.05, based on 173 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Financial Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Financial Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gujarat Mineral Development's current Degree of Financial Leverage of 0.93 is 11.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Financial Leverage mean?
A high Degree of Financial Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Gujarat Mineral Development and its competitors. For the Other Energy Sources industry, the median Degree of Financial Leverage is 1.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gujarat Mineral Development's current Degree of Financial Leverage is 0.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gujarat Mineral Development stock overvalued right now?
Based on GuruFocus' analysis, Gujarat Mineral Development (NSE:GMDCLTD) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹416.19, compared to a current price of ₹570.00 — trading 37% above its estimated fair value. The current Degree of Financial Leverage is 0.93 and 11.4% below the Other Energy Sources industry median of 1.05. Gujarat Mineral Development's overall GF Score™ is 69/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Financial Leverage calculated?
Degree of Financial Leverage is calculated from a company's financial statements. For Gujarat Mineral Development (NSE:GMDCLTD), the current Degree of Financial Leverage is 0.93 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Gujarat Mineral Development (NSE:GMDCLTD) Overvalued in 2026?
Based on GuruFocus' analysis, Gujarat Mineral Development stock appears to be overvalued.
The current stock price of ₹570.00 is trading 37% above its estimated GF Value™ of ₹416.19.
GuruFocus considers Gujarat Mineral Development to be Significantly Overvalued.
Key valuation signals for NSE:GMDCLTD:
Degree of Financial Leverage: 0.93
GF Value™: ₹416.19 vs. price of ₹570.00 (37% above fair value)
Industry Position: 11.4% below the Other Energy Sources median (#74 of 173)
No single metric tells the full story. See the NSE:GMDCLTD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gujarat Mineral Development Corp Ltd is a mineral resource mining company. Its operations include lignite mining, bauxite mining, fluorspar mining, manganese mining, and power generation. The company's segments include Mining and Power. The majority of its revenue is derived from the Mining segment which engages in the mining and sale of manganese, bauxite, limestone, silica sand, and others. Geographically, the company operates only in India.
69GF Score
Get the complete analysis for NSE:GMDCLTD
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